The government today constituted the Financial Sector Legislative Reforms Commission (FSLRC) headed by former Justice BN Srikrishna, to examine the means of oversight on regulators and their autonomy from the government, among others.
"The resolution notifying the constitution of FSLRC was issued today," an official statement said.
The 11-member commission is to be headed by Retired Supreme Court Justice BN Srikrishna and it would have its first meeting on April 5.
Other members of the commission include former PFRDA Chairman D Swarup, former Chairman of Axis Bank PJ Nayak, PMEAC member M Govinda Rao, among others.
Finance Minister Pranab Mukherjee had in his Budget for 2010-11 announced plans to set up such a committee to rewrite and harmonise financial sector legislations, rules and regulations.
The terms of reference of the commission include to examine the architecture of the legislative and regulatory system governing the financial sector in India and to look at the most appropriate means of oversight over regulators and their autonomy from the government.
Besides, to "examine if legislation should mandate statement of principles of legislative intent behind every piece of subordinate legislation in order to make the purposive intent of the legislation clear and transparent to users of the law and to the Courts".
It would also look at feasibility if public feedback for draft subordinate legislation should be made mandatory, with exception for emergency measures. Besides, "examine the interplay of exchange controls under FEMA and FDI Policy with other regulatory regimes within the financial sector".
The commission will submit its report to the Finance Minister within 24 months.
There are over 60 Acts and numerous rules and regulations dealing with the financial sector and many of them are considered to be archaic.
"Large number of amendments made in in these Acts over time has increased the ambiguity and complexity of the system," the statement added.
