New Delhi: Finance minister P. Chidambaram on Thursday discussed the issues concerning the regulatory environment and deliberated on steps which could be taken in the budget, in a meeting with financial sector regulators.
“We gave suggestions for budget from our respective point of view,” Reserve Bank of India (RBI) governor D. Subbarao told reporters after the meeting.
The high-level financial stability and development council (FSDC), which is chaired by the finance minister and comprises heads of RBI, Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority (Irda) and Pension Fund and Regulatory Development Authority (PFRDA), coordinates the working of regulators and looks at economic and financial issues.
The meeting reviewed the initiatives taken by RBI and Sebi for strengthening corporate bond market with a view to help corporates raise long-term funds in a cost-effective manner, sources told Press Trust of India.
Though India has a very advanced G-sec (government securities) market, corporate bond market is relatively under-developed.
Besides, issues such as slowing growth, persistent inflationary pressures, rising gold imports and growing fiscal and current account deficits were also discussed.
The regulators who attended the meeting included PFRDA chairman Yogesh Aggarwal, Irda chairman J. Harinarayan and secretaries in the finance ministry.
Chidambaram will present the budget proposals for 2013-14 in the Lok Sabha on 28 February.