Time for market-oriented financial sector reforms: Pranab

Finance minister Pranab Mukherjee today said it is time that India launched a new wave of financial sector reforms that would cater to the changing needs of the market.

He said we must make some changes in the kind of products and regulatory frameworks in order to have an effective control of the financial sector.

Many financial sector norms are decades old and some are even 50 years old, he said, adding that it was high time that we change the financial sector norms in tune with the dynamic needs of the markets.

Speaking at the annual convention of the Association for National Exchanges Members of India in Kolkata today, Mukherjee said the markets were complex and required greater transparency to lower systemic risks and needed to be integrated into the multi-regulatory regime for financial stability.

"There is, therefore, a need to clear the cobweb generated over the decades to provide a firm foundation to usher in a new wave of financial sector reforms," he said.

He said the proposed apex level financial stability and development council is intended to monitor macro-level prudential supervision of the economy, including functioning of large financial conglomerates. Additionally, the council would also address regulatory coordination issues.