Taking forward long pending reforms of financial sector regulators, the finance ministry has now set up taskforces on four new agencies including a Public Debt Management Authority, a unified Financial Sector Appellate Tribunal, a Resolution Corporation as well as a Financial Data Management Centre. The move follows the recommendations of the Financial Sector Legislative Reforms Commission that had called for a non-sectoral, principle-based, legislative architecture for the financial sector by restructuring existing regulatory agencies and creating new agencies for better governance and accountability. “As recommended by the FSLRC, the government has set-up taskforces to lay the roadmap for the upgradation of existing agencies and establishment of new agencies,” said a finance ministry release on Tuesday. Each of the panels have been given a one year period to finalise their reports that would include international best practices, an administrative plan on the required physical infrastructure, a transition plans as well as a cost-benefit analysis. The taskforce on the PDMA, which will help the government raise debt and support cash management function will be headed by former PFRDA regulator Dhirendra Swarup. Meanwhile, Justice NK Sodhi, former Chief Justice of high courts of Kerala and Karnataka and a former presiding officer of the Securities Appellate Tribunal will chair the taskforce on setting up the Financial Sector Appellate Tribunal. The FSAT is envisioned as an appellate court for all financial sector matters with a well designed registry and international best practices in court management. Former RBI deputy governor Subir Gokarn will head the taskforce on Financial Data Management Centre that is proposed to be a depository of all financial sector data. Former Sebi chairman M Damodaran has been appointed as the chairman of the committee on the Resolution Corporation that would resolve financial firms before they reach the stage of insolvency. The finance ministry and financial sector regulators had decided to move ahead with recommendations of the FSLRC in October 2013 at a meeting of the Financial Stability and Development Council.
