FSDC sub-committee reviews economic scenario

RBI Governor Shaktikanta Das headed FSDC sub-committee on Friday reviewed the economic scenario as well as financial markets that impinge on the stability, the central bank said in a statement.

The Financial Stability and Development Council (FSDC) comprising heads of different regulatory bodies and finance ministry officials was set to deal with macro prudential and financial regularities in the Indian financial sector.

While FSDC is chaired by the Union Finance Minister, the sub-committee is headed by the Reserve Bank of India Governor.

"The Sub-Committee reviewed the major developments in global and domestic economy and financial markets that impinge on the financial stability," the RBI said.

It discussed about measures to promote interest and competition in stressed asset markets, enhancing the scope of Legal Entity Identifier (LEI) to more effectively monitor group exposures, issues relating to credit rating agencies and audit quality.

The sub-committee also discussed about measures to strengthen the systems against frauds. It also deliberated on revisiting the framework for early warning signals.

The meeting was attended by Injeti Srinivas, Secretary, Ministry of Corporate Affairs; Atanu Chakraborty, Secretary, Department of Economic Affairs; and Krishnamurthy Subramanian, Chief Economic Adviser.

Sebi chairman Ajay Tyagi, Irdai chairman Subhash Chandra Khuntia, chairperson of Insolvency and Bankruptcy Board of India (IBBI) M S Sahoo, and deputy governors of the RBI too participated in the 23rd meeting of the FSDC sub-committee.