Union Finance Minister, Shri P. Chidambaram, here today inaugurated a National Seminar on the Indian Financial Code as recommended by the Financial Sector Legislative Reforms Commission. The Seminar was organized by the Institute of Company Secretaries of India (ICSI) which functions under the aegis of the Ministry of Corporate Affairs. Addressing the august gathering, Shri Chidambaram spoke briefly about the set of Financial Rules, Regulations and Acts that have been passed in the last 80 years and pointed out that these legislations were being enacted on piecemeal basis which has left lapses and gaps between the regulators, legal system and conflict in policies. Further, he said that the current legislative framework addresses only temporary pressure and does not address critical key issues; also, there is multiplicity of laws, institutions and regulators that create ambiguity. The Finance Minister highlighted the challenges, viz. legislative change, capacity building, handling complexity of transition from present to the proposed Code, etc. He further said that careful analysis of existing legislations in bringing legislative reforms for the financial sector is required and pointed out that the Indian Financial Code advocates a non-sectoral and principle- based approach.
Dr. K. P. Krishnan, Principal Secretary, Government of Karnataka, in his Key Note Address on the overview of Indian Financial Code briefed about the series of financial sector reforms since 1992. He said that there is an internally consistent and complete approach to financial sector legislative reforms since mid 2000 and said that laws needed to be changed contemporariously and as a whole. He said the Indian Financial Code would remove the vague objectives and vague powers; and establish accountability mechanism.
Ms. Chitra Ramakrishna, Managing Director and CEO, National Stock Exchange, in her Special Address said that the spirit of the Financial Code can be achieved only if sub-ordinate and sectoral regulations stay in course with the Code. She also emphasized on the need for training and capacity building, to create a cadre to deal with the new paradigm.
Shri S. N. Ananthasubramanian, President, Council of the ICS,I in his Welcome Address said that market governance fosters corporate governace in even manner and provides building blocks to facilitate dialogue and new ideas to emerge.