The second meeting of the Sub-Committee of the Financial Stability Development Council (FSDC) was held today in the Reserve Bank of India, Mumbai. Dr. D. Subbarao, Governor, Reserve Bank of India, chaired the meeting. Shri R. Gopalan, Secretary, Department of Economic Affairs, Shri Shashi Kant Sharma, Secretary, Department of Financial Services, Dr. Kaushik Basu, Chief Economic Adviser, Ministry of Finance, Shri U. K. Sinha, Chairman, Securities and Exchange Board of India, Shri J. Hari Narayan, Chairman, Insurance Regulatory and Development Authority, Shri Yogesh Agrawal, Chairman, Pension Fund Regulatory and Development Authority and Deputy Governors of the Reserve Bank Smt. Shyamala Gopinath, Dr. Subir Gokarn and Shri Anand Sinha and other officials also attended the meeting.
The Sub-Committee reviewed the recent macroeconomic and financial sector developments, focussing on issues related to systemic risk. It also deliberated upon concerns arising out of regulatory gaps in the non-banking finance companies (NBFC) sector and regulation of government sponsored NBFCs. The Sub-Committee agreed to strengthen regulatory framework for wealth management activities, to formalise an institutional mechanism for supervision of financial conglomerates and to put in place a robust reporting platform for over-the-counter (OTC) derivatives market. The Sub-Committee was also briefed about the implementation status regarding the budget announcements on investment in mutual funds by non-resident investors and setting up of infrastructure debt funds.