Finance Minister P Chidambaram remarked that it was very complex and difficult to pass financial sector laws by a coalition government.
He mentioned the case of the Companies Bill, which was cleared by the Lok Sabha and is awaiting the nod of the Rajya Sabha.
He said this while addressing the third national seminar on ‘India Financial Code’ organised by the Institute of Company Secretaries of India (ICSI).
In March 2011, the government set up a committee headed by Justice (Retd) BN Srikrishna to propose a model financial code.
The Financial Sector Legislative Reforms Commission (FSLRC) comprised ten experts from the fields of law, economics, finance, regulation and markets.
The panel submitted its report to the Finance Minister in March this year. A complete revamp of the financial sector laws in the current political milieu may be tough, but there are several elements of the FSLRC report that can be operationalised at the earliest.
Chidambaram said detailed consultations before issue of any new regulation and conducting basic cost-benefit analysis are recommendations that can be implemented right away.
He said passing laws may have become difficult, but the government is committed to putting in place a new financial regulatory system that will serve the nation well for at least the next 50 years.