Justice B.N.Srikrishna Committee recommendations to be reviewed by a 9-member IRDA panel
The Insurance Regulatory and Development Authority (IRDA) set up a 9-member panle to review the 14 non-legislative recommendations made by the Financial Sector Legislative Reforms Commission (FSLRC).
The role of panel is to:
- Examine the extant legislative and regulatory framework in compliance 14 Non-Legislative Recommendations (NLRs).
- Identify the gaps and possible improvements in the extant framework vis-a-vis the 14 NLR.
- Suggest changes or modifications to the extant framework in compliance with the 14 NLR.
About Financial Sector Legislative Reforms Commission (FSLRC) report:
- Headed by former Justice B.N.Srikrishna
- Contains 12 key proposals and these do not require legislative changes.
- The financial sector regulators will take serious action with high penalties on violators and time bound investigations that would act as deterrents and improve consumer protection.
- The proposals that called for penalties discourage the future violations as a multiple of the illegitimate gain of violations.
- Regulators should also put in place internal manuals on conducting investigations. The investigating officer would be kept different from the officer who would decide the penalty for the crime.