Finance committee report

The ministry of finance must intervene and resolve the standoff between the two financial sector regulatorsSecurities and Exchange Board of India...

Finmin must intervene in ulip row

NEW DELHI: The ministry of finance must intervene and resolve the standoff between the two financial sector regulatorsSecurities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority (IRDA) over the regulation of unit-linked insurance plans (ULIPs),the standing committee on finance headed by Murli Manohar Joshi said in a report tabled in the Parliament on Monday. The committee also urged the government to set up the financial stability and development council (FSDC) early to address such inter regulatory issues. The committee has also lashed out on the ministry saying that it is rather disquieting that the regulation of a product launched way back in 2001 continues to remain hazy. ENS

Meeting deficit targets unlikely

NEW DELHI: The standing committee on finance has asked the finance ministry to present it with a detailed road map for implementing the recommendations of the Thirteenth Finance Commission given that the combined debt burden of the centre and the states has reached 80 per cent of GDP this year. The committee has pointed out in its report tabled in Parliament that the government has overshot the outer limit of 75 per cent prescribed by the Twelfth Finance Commission. The committee has also cautioned the government over the astounding percentage of revenue it spends towards servicing debt. The committee has pointed out that it is unlikely that the government will meet the fiscal deficit targets set by the Thirteenth Finance Commission. ENS

Dont raise retirement age in SAT

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NEW DELHI: The standing committee on finance has opposed the governments move to amend the Securities and Exchange Board of India (SEBI) Act to increase the retirement age of members of the special appellate tribunal (SAT) within SEBI from 62 years to 65 years. Instead,the standing committee has said that the SEBI Amendment Bill 2009 should consider fixing five years tenure for all members irrespective of whether the tribunal is comprised of retiring or retired members. In 2009,the finance ministry and SEBI had proposed increasing the retirement age of SAT members on the grounds that the age limit of 62 years prevented appointees to serve for more than 12 to 18 months. ENS

Need action on unbanked blocks

NEW DELHI: The standing committee on finance has expressed strong disapproval over the lack of seriousness of the ministry of finance in laying out a road map to extend banking services to the unbanked and underbanked blocks in the country and asked the government to formulate an action plan as soon as possible. Even though finance minister Pranab Mukherjee had assured expansion of banking facility to the underbanked areas within next three years,the ministry of finance had surprisingly not fixed any particular timeframe or target to cover the unbanked areas,noted the report tabled by the standing committee on finance. ENS