Mumbai, September 28 (IANS): The Financial Stability and Development Council (FSDC) of the RBI on Friday reviewed recent developments in global and domestic economies and deliberated upon revisiting some existing laws to detect early warnings of instability.
The FSDC Sub-Committee discussed measures to promote interest and competition in stressed asset markets, enhance the scope of Legal Entity Identifier (LEI) to more effectively monitor group exposures and issues relating to credit rating agencies and audit quality.
"The Council also mulled upon the role of credit rating firms and stressed asset market development. The role of credit rating firms has been under the RBI and the SEBI scanner after a spate of defaults by highly rated companies, especially non-banking finance companies (NBFCs).
"The Sub-Committee also deliberated upon measures to strengthen the systems against frauds and to revisit the framework for early warning signals," said a statement from the Reserve Bank of India.
The meeting was chaired by Reserve Bank Governor Shaktikanta Das and attended by members of the Sub-Committee.
Though not a statutory body, the FSDC is India's initiative to strengthen and institutionalise the mechanism of maintaining financial stability, financial sector development and inter-regulatory coordination along with monitoring macro-prudential regulation of economy. No funds are separately allocated to the Council for undertaking its activities.