Update: The Financial Resolution and Deposit Insurance (FRDI) Bill has been deferred by the Parliamentary standing committee. The Committee is likely to submit its report in the Budget Session.
The much-delayed Winter Session of the Parliament has begun on December 15, and the controversial Financial Resolution and Deposit Insurance (FRDI) Bill has been officially listed by the government for consideration and passage. Besides, The Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017 and The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 are two other economy-related bills are also on the table. As many as 25 pending bills and 14 new ones are set to be introduced in the Parliament; bills on Triple Talaq, backward class and transgender community are on the agenda.
Here are three key economy-related bills that are set to be introduced in Winter Session of the Parliament:
The Financial Resolution and Deposit Insurance (FRDI) Bill, 2017: The FRDI Bill establishes a Resolution Corporation to monitor financial firms, anticipate the risk of failure, take corrective action, and resolve them in case of such failure. The bill created controversy over its ‘bail-in’ clause, which will allow critically ill banks to restructure their liabilities, which are also depositors’ monies. The clause is being opposed by many sections of society, as it is understood to be putting depositors’ money in danger. The bill is currently with the Joint Parliamentary Committee for examination.
The Goods and Services Tax (Compensation to States) Amendment Ordinance, 2017: The Ordinance aims to increase the cap on the GST compensation cess levied on cars from 15 percent to 25%. The Ordinance amends the Goods and Services Tax (Compensation to States) Amendment Act, 2017, which was promulgated on September 2, 2017.
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017: It particularly amends the definition of a resolution applicant and their eligibility and ineligibility. The Ordinance lays down 10 ineligibility criteria for a resolution applicant, few of them being, a willful defaulter identified by the RBI, a person who has been convicted with two years more years of imprisonment, an undischarged insolvent and person prohibited from trading in securities. The 2017 Ordinance amends the Insolvency and Bankruptcy Code, 2016.
According to a list compiled by think-tank PRS Legislative Research, some of the bills listed for consideration and passage at the session include Prevention of Corruption (Amendment) Bill, 2013, Surrogacy (Regulation) Bill, 2016, Transgender Persons (Protection of Rights) Bill, 2016, Muslim Women (Protection of Rights on Marriages) Bill, 2017 among others. The surrogacy bill prohibits commercial surrogacy and allows its altruistic form. The transgender bill, on the other hand, defines a transgender person, prohibits discrimination against them and prescribes penalties for certain offences. The Muslim Women (Protection of Rights on Marriages) Bill gives women from the community the right to seek maintenance from their husbands in case of triple talaq.
Story first published at 2.45 pm on December 15, 2017, on www.financialexpress.com