The government appointed a 10-member Financial Sector Legislative Reforms Commission (FSLRC) on March 24 to rewrite and clean-up financial sector laws to bring them in tune with the current requirements. Retired Supreme Court Judge B N Srikrishna, who chairs the Commission, tells Indivjal Dhasmana that the issue of avoiding turf war between regulators would be considered by the panel and that would include the matter of super regulator to regulate watchdogs. The panel has been asked to submit report to the government within 24 months. Excerpts of the interview.
Last year, turf war had erupted between Sebi and Irda over ULIPs. To avoid that what can be your thinking for hybrid products like ULIPs that come in regulations of more than one watchdog?
Yes, that is one of the issues to be flagged and considered. Another issue is whether there can be a super regulator to oversee and co-ordinate other regulators.
Can there be a new law for information technology relating to financial services?
I see no reason for this. But if people give us critical inputs and reasons for this, we may examine its feasibility.
The Pension Fund Regulatory and Development Authority (PFRDA) Act is yet to come up. Will it be wise enough to review it, since it may take into account all the modern factors governing the pension sector?
The question is not one of reviewing it, but of seeing that there is no conflict or inconsistency between that Act and other Acts so as to create impedance in their working.
Could new type of laws like that happened in case of Direct Taxes Code emerge out of your rewriting financial laws?
That too can be examined for feasibility.
Financial services are supposed to be the next engine of growth. Which way the rewriting of financial sector laws help in boosting growth in this area?
By making things smoother for transactions in financial services and removing roadblocks that may be identified.
Is two-year time frame given for submitting recommendations enough to study over 60 Acts and numerous rules and regulations dealing with the financial sector, many of them considered archaic?
I do not think we will need 17 years! We have a set of experts and researchers who may be constituted into smaller groups to study different aspects and the Commission can take an overview of the work of the smaller groups and produce a report within the given time frame.
