SEBI doesn't want proposed financial body as arbiter


New Delhi: The Securities and Exchange Board of India (SEBI) has told the government that it does not want the proposed Financial Stability and Development Council (FSDC) as an arbiter in disputes between regulatory bodies. SEBI said that the new council should only concern itself with issues relating to financial stability, reports Shaji Vikraman of the Economic Times. D Subbarao, Governor, Reserve Bank of India (RBI, has opposed to the ordinance that gives a committee headed by the finance minister the power to resolve disputes between regulatory bodies. RBI believes that the ordinance may affect the regulatory autonomy of the insurance regulator. The proposed FSDC will be chaired by the finance minister and it will comprise two committees - one on inter-regulatory issues with the RBI governor proposed to head it and another on financial stability with the finance secretary at its head. While RBI has some reservations about the FSDC, SEBI does not want any committees. It believes that FSDC should not affect the style of regulators. Governments, on its part, defend the decision saying that when there is a systematic crisis, it is the taxpayers who pick up the tab. Since accountable to the Parliament, government can intervene.