New Delhi: Finance Minister Arun Jaitley will address the boards of Reserve Bank and Securities and Exchange Board of India on March 12, to discuss various financial sector reforms announced in Budget 2016-17.
The address of the finance minister comes in the backdrop of the government's announcement of meeting current year's fiscal deficit target and sticking to the target of 3.5 per cent. The minister would first address the board of Sebi and then RBI in Delhi on March 12, sources said.
It has been a custom that the finance minister addresses RBI board, consisting of RBI governor and existing three deputy governors, after the Budget. Jaitley, who presented the Budget on February 29, is likely to inform the boards of both the regulators about various financial sector reforms announced including proposal to amend the RBI Act for setting up of a Monetary Policy Committee (MPC) which will fix the benchmark interest rate of the central bank and set inflation targets.
Besides, he proposed to provide Rs 25,000 crore and if needed more to public sector banks to strengthen their balance sheets. To tackle the problem of stressed assets in the banking sector, Asset Reconstruction Companies (ARCs) have a very important role.
He proposed to make necessary amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100 per cent stake in the ARC and permit non-institutional investors to invest in securitization receipts.
With regard to capital market, Jaitley announced setting up of an electronic auction platform by Sebi for primary debt offer. The enactment of Insolvency and Bankruptcy Code would provide a major boost to the development of the corporate bond market.
To check the ponzi menace, the government also proposed to come out with a comprehensive central legislation to safeguard the public from getting defrauded by illicit deposit taking schemes. Budget 2016-17 also proposed to amend the Sebi Act 1992 in the coming year to provide for more members and benches of the Securities Appellate Tribunal.
