GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF ECONOMIC AFFAIRS
UNSTARRED QUESTION NO. 1452
ANSWERED ON TUESDAY JULY 22, 2014
Review of Regulatory Bodies
1452. SHRI RAJEEV CHANDRASEKHAR:
Will the Minister of FINANCE be pleased to state;
(a) whether Government proposes to undertake a comprehensive review of existing regulatory bodies including amendments of laws and Statutes, in the light of the scams and crisis witnessed during recent times, as a result of failure of regulatory institutions; and
(b) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SMT. NIRMALA SITHARAMAN)
(a) Enactment of new laws and amendments to existing laws and statutes are regular exercises undertaken by the government to address the dynamics of the financial sector. Recent enactments like the Securities and Insurance Laws (Amendment and Validation) Act, 2010, Pension Fund Regulatory and Development Authority (PFRDA) Act 2013 and proposed amendments to Insurance Act. 1938, the Securities Laws (Amendment) Bill, 2014 and Forward Contracts (Regulation) Amendment Bill, 2013 are recent examples of such initiatives.
In addition, the Financial Sector Legislative Reforms Commission (FSLRC) report has proposed a comprehensive review of financial sector legislations and restructuring of the regulatory architecture for empowering the institutional structure of financial sector regulation to meet the contemporaneous requirements of the growing Indian economy which is increasingly getting integrated with the global economy.
(b) Does not arise in view of the reply to part (a) above.