The Standing Committee attached to the Finance Ministry is all set to submit reports on two key financial reform Bills — banking and pension — during the monsoon session of Parliament beginning August 1.

Sources told Business Line that the Committee's reports on two other Bills — Unique Identification Authority and The Regulation of Factors (Assignment of Receivables) — are also likely to be tabled during this session.

Though the Government is not bound to accept the Committee's suggestions, some may be incorporated. After Cabinet approval, the Bills will be tabled for consideration and passage.

The much-awaited Banking Laws Amendment Bill proposes to provide voting rights in proportion to shareholding. At present, except for the Government, the voting right is capped at 10 per cent for all, irrespective of shareholding. Analysts feel the removal of cap will pave way for the proposed norms on new banking licences.

The Pension Fund Regulatory Bill will provide statutory status to the Pension Fund Regulation and Development Authority (PFRDA). However, the Standing Committee, at its meeting on Wednesday, asked the Finance Ministry to submit within a week answers to four key queries, sources said.

First, it wanted to know why the Bill was silent on foreign direct investment. Second, it wanted details of the Authority's experience as an executive agency. The third query related to the highs and lows of returns on investment, and the fourth on how PFRDA could work as a national social security regulator.

“After a reply from the Finance Ministry, the Committee may need to sit once more and then finalise its reports,” sources added.

Sources said the reports on three other Bills — Direct Taxes Code, the Constitutional Amendment Bill for goods and services and Insurance Bill — may have to wait until the winter session, as consultations were still on.

>shishir.s@thehindu.co.in

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