The Financial Sector Legislative Reforms Commission (FSLRC) has suggested that the Competition Commission of India (CCI) should be empowered to monitor the impact of regulatory actions taken by the financial regulators on competition.
Moreover,financial regulators should be obliged to consider the recommendations made by the CCI on such matters,the FSLRC has said,and has suggested a structured mechanism for interaction with regulators and the CCI.
According to the report,all draft regulations issued by regulators for public comments should be reviewed by the CCI and it should provide its inputs on any potential competition implications which may arise due to the draft.
The comments of the CCI have to be mandatorily considered by the regulator before finalising the regulations. If the regulator disagrees with CCIs views,it must provide written reasons, the report suggested.
In case the competition watchdog takes any action against a financial agency,it will have to inform the financial regulators to ensure the best interests of consumers,the report added.