The Union Minister met sector regulators led by RBI Governor Raghuram Rajan and Sebi chairman UK Sinha to understand the financial activities and take stock of the economic situation in the country.

"There is the need to improve business climate and reduce the cost of doing business as important means for revival of the investment cycle," Jaitley told reporters after the 11th meeting of the Financial Stability and Development Council (FSDC).

"There were general discussions on the current financial and economic indicators, and also on any suggestions any regulator has with regard to the forthcoming policies of the government," he added.

The interaction was part of an exercise undertaken by the minister to consult various sectoral regulators ahead of the Budget presentation next month.

India's economic growth stayed below 5 percent for the second year in a row at 4.7 percent in 2013-14, mainly due to a decline in manufacturing and mining output. Growth remained subdued at 4.6 percent in the fourth quarter of last year.
"There are high political expectations from the new government and the opportunity (is) now available for resolving long-pending problems facing the economy. There is a need for coordinated approach by all the regulators to achieve financial stability," Jaitley said.
IRDA Chairman TS Vijayan, Forward Markets Commission Head Ramesh Abhishek and PFRDA's Officiating Chairman R V Verma, besides senior finance ministry officials including finance secretary Arvind Mayaram, secretary department of financial services G S Sandu, among others were also present.
Reaffirming the government's commitment to keep finances in check, the Finance Minister said he is against "slackening the vigil in the area of fiscal consolidation".
Asked about the government's view on the recently released report on governance of banks by P J Nayak committee, Jaitley said, "You will have to wait for our application of mind on these subjects."

Nayak committee has recommended, among other things, bringing down government's holding in public sector banks below 51 percent.

The country’s fiscal situation, external sector environment and developments in financial markets are likely top the agenda, which would also include financial sector reforms, particularly in the banking sector, reeling under bad loans and depleting core capital.
An RBI panel report by PJ Nayak recently suggested that government should bring down its holding in public sector banks below 51 percent apart from calling for their merger.
Jaitley also interacted with institutional and overseas investors in the evening.
The FIIs have been pumping large amounts of money into the financial markets in the run-up to the polls and also post BJP victory hoping for major reforms and swift decision making by the Narendra Modi government.

The meeting with FIIs assumes importance as the government is expected to usher in a slew of reforms on the FDI front and aggressively pursue divestment to shore up non-tax revenue.

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