Q. Consider the following statements regarding “Financial Sector Development Council (FSDC)”:
1.Prime Minister is the chairman of FSDC.
2.It resolves inter-agency disputes.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Explanation: Few years back, an important addition was made to the regulatory architecture—the Financial Sector Development Council (FSDC) was set up which replaced the High-Level Committee on Capital Markets.

  • The council is convened by Ministry of Finance and does not have statutory authority—it is structured as a council of regulators—Finance Minister as chairman. It has a permanent secretariat.
  • The council resolves inter-agency disputes; look after the regulation of financial conglomerates that fall under various regulators’ purview; and performs wealth management functions dealing with multiple products.

Source: Ramesh Singh