Draft IFC revised based on recommendations: Government

The Financial Sector Legislative Reforms Commission (FSLRC), set up for re-writing the financial sector laws and bring them in harmony with current requirements has modified the draft in view of the comments received from relevant stakeholders, the government said on Thursday.

"The Draft IFC (Indian Financial Code) has been revised in the light of the comments received and hosted now as Revised Draft IFC on the home page of the ministry of finance," said an official statement.

It said the modifications in the draft mainly relate to strengthening the regulatory accountability of financial agencies, removing the provision empowering FSAT to review regulations and rulemaking and operational aspects of capital controls.

Also, monetary policy framework and composition of the Monetary Policy Committee, regulation of systematically important payment system and others, removing the provision of special guidance etc are included as part of the modifications.

"Further the modifications have taken into consideration the enactments subsequent to the submission of the FSLRC report; namely The Pension Fund Regulatory and Development Authority Act, 2013 (PFRDA Act) and Securities Laws (Amendment) Act, 2014," it said.

The commission has, among other things, recommended a non-sectoral, principle-based legislative architecture for the financial sector, by restructuring existing regulatory agencies and creating new agencies, wherever needed for better governance and accountability.

The government has requested comments on the revised draft latest by August 8.