Mumbai: The high level co-ordination committee or HLCC on financial markets on Monday discussed formalisation of the structure of the regulatory panel to make it more efficient. The meeting remained inconclusive and no decision was taken. “Even though no paper was circulated in advance, there was a presentation made and we did informally discuss it,” one of the members of the committee told Mint.
HLCC consists of top officials of Indian banking, capital markets, insurance and pension regulators besides representatives from the ministry of finance.
The government is in favour of creating a formal structure, even enacting a law to enable and strengthen coordination between various financial sector regulators and plug the gaps in the current regulatory framework.
The Indian banking regulator seems to be not comfortable with the idea. Reserve Bank of India governor D. Subbarao has said the issue has to be debated.