• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

K.R. Srivats

New Delhi, Aug. 12 The Government is toying with the idea of putting in place a Common Financial Services Appellate Tribunal (CFSAT) to hear appeals against orders passed by various regulators in the financial sector.

Any such move would push the debate forward on convergence of regulations in the financial sector and may also be a launch pad for having a common regulator in the financial sector in the long run, say financial sector observers and experts.

“We will look at morphing the existing Securities Appellate Tribunal (SAT) to a Common Financial Services Appellate Tribunal. Of course, we need to bring legislative amendments to various laws for this purpose,” a Finance Ministry official said.

The official noted that this (having a CFSAT) could be a priority area for action from the policy makers in the coming days. If the CFSAT concept were to find favour, then Government may also look at expanding the size of Securities Appellate Tribunal (SAT) by bringing more members.

Currently, appeal on orders passed by the Securities and Exchange Board of India lies before the SAT. Even in the case of insurance regulator — Insurance Regulatory and Development Authority — the appeal on its orders lies before the SAT. The same is the case for orders passed by the commodities regulator — Forward Markets Commission.

However, sources in the financial sector pointed out that it would be a moot point as to whether the Reserve Bank of India (RBI), which is the regulator of the banking sector, would allow themselves to be subjugated by a common appellate tribunal. Currently, appeal against any RBI action lies before the High Courts.

More Stories on : Financial Services | Courts/Legal Issues

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line