Question map
The Financial Sector Legislative Reforms Commission report submitted recently, among others, contained which of the following proposals? 1. All regulators will have an empowered board, the role of each of the members has been defined. 2. The Commission envisages an important process of judicial review of the regulations. 3. The draft code does not mention about executive powers. Select the correct answer using the code given below.
Explanation
The Financial Sector Legislative Reforms Commission (FSLRC), chaired by Justice B.N. Srikrishna, submitted its report in 2013 proposing a draft Indian Financial Code [2]. Statement 1 is correct as the Commission recommended a unified governance structure where all regulators (Financial Agencies) have an empowered board with clearly defined roles for executive, non-executive, and nominee members. Statement 2 is correct because the FSLRC emphasized accountability and proposed a robust process of judicial review for regulations, including the establishment of a Financial Sector Appellate Tribunal (FSAT) to hear appeals against regulatory decisions. Statement 3 is incorrect because the draft code explicitly details the executive powers and functions of the regulators, including their role in micro-prudential regulation, resolution, and market conduct [2]. Therefore, only statements 1 and 2 are accurate proposals of the Commission.
Sources
- [1] https://stafflive.iimcal.ac.in/sites/all/files/pdfs/april-2013-volume-1-issue-9.pdf
- [2] https://en.wikipedia.org/wiki/Financial_Sector_Legislative_Reforms_Commission