This was revealed in the action taken report (ATR) submitted by the ministry of finance (MoF) to Parliament earlier this month. The group will meet periodically for exchanging alerts/information.
The group is in addition to the high level co-ordination committee of the finance ministry (HLCCFM), which addresses policy issues of co-ordination of regulatory gaps and overlaps among various regulators, said the ATR. Keeping in view the statutory autonomy of the regulators, the concerns of the Joint Parliamentary Committee (JPC) regarding a regular review of the position with respect to financial/capital markets would be addressed by forming separate technical committees, it added. Each committee will be headed by senior-level functionaries in the RBI, Sebi and the Insurance Regulatory and Development Authority (Irda). The committees will also have representation from other regulators or agencies and will meet frequently and monitor the developments in the markets and suggest action on early warning signals.
The ATR also said that a mechanism existed for effective co-ordination between the regulatory and investigative agencies like the Enforcement Directorate (ED). Under this mechanism, a regional economic co-ordination committee has been set up, which will co-ordinate with RBI through quarterly meetings. Also, the ED co-ordinates with Sebi to institutionalise a mechanism for holding consultation on a monthly basis, it added.
For co-ordinated action by different regulatory and investigative agencies, a special cell headed by the Director General of Income Tax (Investigation), Mumbai, is in place. It comprises representatives from Sebi, RBI, DCA and CBI as its members.
The last meeting of the cell was held on April 8 to take stock of various market-related issues and other connected fiscal matters, the ATR said and added it was proposed to have regular meetings by the cell in future also.