Govt. determined to put effective financial regulatory system in place: Chidambaram

Finance Minister P. Chidambaram on Wednesday said that making laws in the country is not an easy task, and added that this has become even more difficult due to the legitimization of obstructionism as a parliamentary tactic in the coalition era.

Addressing a seminar on the 'Indian Financial Code' (IFC) which was framed by Financial Sector Legislative Reforms Commission (FSLRC) with a view to update the laws and regulations dealing with the sector, Chidambaram said the government is determined to push through legislations and put in place an effective financial regulatory system.

Chidambaram further said the present financial architecture has evolved over the years with a sequence of piecemeal measures and piecemeal legislations responding to immediate pressures from time to time.

"It is not specifically comprehensively designed to meet some key objectives," he added.

Chidambaram said the multiplicity of laws, institutions and regulators creates regulatory overlaps, gaps and sometimes lack of clarity in their roles.

He said this results in inefficiency in addressing emerging critical issues in the sector.

The government-appointed Financial Sector Legislative Reforms Commission headed by Justice B. N. Srikrishna submitted the proposed code to the Finance Ministry in March this year.