Union Finance Minister Nirmala Sitharaman chaired the 27th Financial Stability and Development Council (FSDC) meeting in New Delhi on May 8, 2023. Photo Credit: ANI
Finance Minister Nirmala Sitharaman on May 8 asked financial sector regulators to be on their toes to ensure that “daunting challenges” emerging from the global economy do not affect the stability of India’s financial markets.
Chairing the Financial Stability and Development Council (FSDC), which comprises all regulators, Ms. Sitharaman stressed that maintaining financial stability is a shared responsibility and called for identifying any potential financial sector stress and taking timely corrective measures. Emphasized the need to develop “early warning indicators” for taking steps. Work.
“The global financial situation is challenging, but at the same time, the Indian financial sector is well protected. But of course we have to be vigilant and be vigilant.’
whole range of problems [emanating from the global economy]including spill over effects and channels through which some spill over may occur [was discussed], The Indian financial sector is well regulated and there are no spillovers,” he asserted.
The Minister called for greater preparedness to ensure cyber security in the increasingly digitized sectors of the markets. “Cyber security of all regulated entities, especially large regulated entities, systemically important financial entities as well as financial market infrastructure requires a high level of preparedness,” Mr. Seth said.
With the Council meeting for the first time after the Union Budget for 2023-24, Ms Sitharaman also asked regulators to put in place a system to facilitate return of unclaimed financial savings to investors and depositors or their nominees and legal heirs.
To help people recover their unclaimed deposits, shares and dividends, the regulators were asked to run a special drive, especially where the details of the nominee are available but the nominee These unclaimed funds may not be known. To the extent the contact details of the nominees are available, the regulators have been urged to reach out to them and settle those claims at the earliest.
“In case where the details are not enrolled, the process announced in the budget should be implemented and widely publicised,” Mr Seth said.
FSDC on the basis of a report submitted by an expert committee headed by a deputy governor of the Reserve Bank of India with representatives from all regulators as well as revenue departments to simplify and streamline the KYC or Know Your Customer process. Also discussed the steps. financial Services.
The regulators were also asked to quickly review their legislative framework and propose changes, wherever necessary, so that the government can consider them and steer them through Parliament.
A simpler and seamless investment experience for retail investors was also proposed to tap the government securities market with the use of technology, and Mr Seth said work on this would be done by the regulators in a time-bound manner.