It was created to gives guidance to regulators with the idea that there should be regulatory harmony
The Financial Sector Legislative Reforms Commission (FSLRC) has written the grid of a brand new regulatory structure. With 16 Acts of Parliament to be repealed and 50 Acts to be amended for the Indian Financial Code (IFC) to become a reality, the political journey ahead is complicated. The ministry of finance took a pragmatic view and used the meeting ground of regulators, the Financial Stability and Development Council (FSDC), to build consensus about implementing those parts of the IFC that need no legislative changes. The eighth FSDC meeting, held on 24 October 2013, approved 12 areas that each regulator will work on to make them IFC-complaint. These include consumer protection, framing regulations, notices, transparency in board meetings, reporting, approvals, investigation, adjudication, imposition of penalties and capacity building. They agreed that these should be implemented quickly. Two months later, on 26 December 2013, the ministry uploaded a handbook that gives guidance to the regulators to help implement these steps with the idea that there should be regulatory harmony so that market failures that occur due to regulatory blind spots, regulatory arbitrage and turf wars are reduced.