Financial stability and development body reviews economy

5 Dariya News (Yawar Shafi)

New Delhi 10-Aug-2014

A sub-committee of the Financial Stability and Development Council (FSDC) chaired by Reserve Bank of India (RBI) Governor Raghuram Rajan has reviewed the domestic economy and potential risks facing the financial system, an official said Sunday.The sub-Committee also discussed a draft roadmap for creating standards and protocol for creating an account aggregation facility for financial assets.These included one single demat account for all financial assets; introduction of uniform Know Your Client (KYC) norms and inter-usability of KYC records across the financial sector; strengthening and deepening the markets for corporate bonds, currency derivatives and interest rate futures; and participation of domestic financial institutions and Foreign Institutional Investors (FIIs) in the commodities market.

The meeting here Saturday was attended by top officials of the finance ministry, the Securities and Exchange Board of India (SEBI) and the RBI.The FSDC is a body constituted by the government after a committee in 2008 recommended an autonomous super regulatory authority for overseeing the financial sector. It was set up in 2010 for strengthening and institutionalising the mechanism of maintaining financial and macroeconomic stability and coordination among the various regulators in the financial sector.