The Financial Sector Legislative Reforms Commission has submitted its Report to the Government Legislative recommendations relate to revamping the legislative framework of the financial sector regulatory architecture by a principle-based approach and by restructuring existing regulatory agencies and creating new agencies wherever needed. Non-legislative recommendations are in the nature of governance enhancing principles for enhanced consumer protection, greater transparency in the functioning of financial sector regulators in terms of their reporting system, greater clarity on their interface with the regulated entities and greater transparency in the regulation making process by means of mandatory public consultation, incorporation of cost benefit analysis and so on.

Details of the recommendations of the Commission are contained in two Volumes of the FSLRC Report which is available in public domain in the official website of the Ministry of Finance at http://www.finmin.nic.in/index.asp.

Government broadly agrees with the non-legislative recommendations of the FSLRC and has requested the financial sector regulators to voluntarily adopt these recommendations. Other recommendations need wide stakeholder consultation and no time line has been decided.

It is intended that the financial sector will be on stronger legal foundations and remains well-regulated, efficient and internationally competitive.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.

Principle-based legislative reform proposed to restructure financial regulators and mandate governance measures for greater transparency. The Report recommends a comprehensive principle-based overhaul of the financial-sector legislative framework, including restructuring existing regulators and creating new agencies where needed, and promotes non-legislative governance reforms-stronger consumer protection, enhanced regulatory reporting, clearer regulator-regulated interfaces, mandatory public consultation, and cost benefit analysis. The Government broadly agrees with the non-legislative recommendations and has requested voluntary adoption by regulators; other recommendations require wider stakeholder consultation with no timeline.