FM Nirmala Sitharaman holds Pre-Budget Consultation with representatives of Financial Sector, Capital Markets

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The Union Minister of Finance and Corporate Affairs Nirmala Sitharaman held her third Pre- Budget Consultation Meeting with the stakeholders from Financial Sector and Capital Markets on Thursday.

The main areas of discussion during the Meeting included issues relating to the Capital Markets, Financial Sector, Non-Banking Financial Companies (NBFCs) and Alternative Investment Funds (AIFs) among others.

With a view to give boost to Indian markets, the representatives of Financial Sector and Capital Markets submitted several suggestions concerning infusion of capital in niche/regional banks, enhanced role of Financial Sector Development Council, on the NBFC Sector, need to distinguish between solvency, governance & liquidity issues was mentioned along with creation of dedicated liquidity window for NBFC sector , review of interest rates on Govt.’s Small Savings Schemes, review of banking NPAs provisions through setting-up a Committee.

Other suggestions submitted including, enhancing financial literacy programmes and funding,  incentivising agricultural marketing, setting-up of Debt Exchange Traded Fund, domestic capability building in Audit & Credit Rating, making available trade licence online for MSME sector, provision to ease liquidity pressures created due to insolvency, rationalisation of various taxes like Security Transaction Tax (STT) in capital market, setting-up of a separate bond exchange, allowing banks to invest in InvITs to access broader market and make Corporate Tax progressive to incentivise MSME Sector among others.

Along with Nirmala Sitharaman, the meeting was attended by Anurag Thakur, Minister of State for Finance and Corporate Affairs, Subhash C. Garg, Finance Secretary, Girish Chandra Murmu, Expenditure Secretary, Ajay Narayan Pandey, Revenue Secretary, Rajeev Kumar, Secretary, DFS, Atanu Chakraborty, Secretary, DIPAM, Pramod Chandra Mody, Chairman, CBDT, P.K Das, Chairman, CBIC, Dr K.V. Subramanian, CEA and other senior officials of Ministry of Finance.

Major Stakeholders of Financial Sector and Capital Markets participated in the Meeting.