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PC pushes for demat account

Chidambaram: Upbeat

New Delhi, Feb. 4: Finance minister P. Chidambaram today asked regulators to introduce a common demat account for financial assets.

Chairing a Financial Stability and Development Council (FSDC) meeting, attended by all financial regulators, Chidambaram said inter-regulatory issues should be resolved in a time-bound manner by the FSDC sub-committee.

“Priority should be accorded to the steps such as the common demat account for financial assets, which will considerably benefit the consumers,” he said.

Although the deceleration in growth has been arrested in the second quarter of 2013-14, inflationary pressures and structural bottlenecks are weighing down the growth process, he said.

The finance minister “stressed upon the need for the government and the financial sector regulators to ensure robust growth and manage vulnerabilities”, according to an official statement.

Last month, the government lowered the 2012-13 growth estimate to a decade low of 4.5 per cent from 5 per cent. Growth in the first half of this financial year is estimated at 4.6 per cent.

The FSDC has taken many initiatives to develop the financial sector. These include the development of the corporate debt market, the launch of infrastructure debt funds (IDFs) and the issue of new FPI (foreign portfolio investor) regulations.

It has also pursued the implementation of the report of the Financial Sector Legislative Reforms Commission to ensure that the sector stands on sound legal foundations and remains well-regulated, efficient and internationally competitive.

According to the finance ministry statement, the council made an assessment of the emerging issues relating to financial stability, including preparedness for the impact of the US tapering, liquidity crunch and repricing of risk.

 
 
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