The central government has decided to frame a rule that would mandate regulators and other autonomous bodies to transfer surplus funds to the exchequer, said two government sources privy to the development. The new guideline is expected to come in a month.
The move would make the Securities and Exchange Board of India (Sebi) and a dozen other regulators, such as the Insurance Regulatory and Development Authority of India (Irdai) and the Pension Fund Regulatory and Development Authority (PFRDA), to shell out a significant portion of their reserves into the Consolidated Fund of India. The Centre has been eyeing these resources that would help it reduce fiscal deficit. Experts, however, said this could infringe on the independence of the regulatory bodies.
We have asked Sebi to provide details of expenses they require for their internal operations. The rest of it would go to a public account and the government can allocate funds as and when required,” said a source cited above. According to him, a final consensus is required on the operational aspect of the surplus fund. This needs more deliberation.
New rule will give surplus reserves of Sebi, pension regulator to govtSebi holds the highest surplus reserves, followed by Irdai, among autonomous bodies. So, the government is planning to first amend the Sebi Act; later, changes would be made to other Acts of the governing bodies...Read More
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