Economic reforms round-2

49% FDI in insurance, 26% in pension sector
After foreign direct investment in multi-brand retail sector, the Union Cabinet hiked FDI limit in pension and insurance sectors. Still foreign investors would not be able to gain controlling shares of pension and insurance providing companies as the cap being fixed at 49 per cent for insurance sector and 26% for pension sector. 
This is against the recommendation of Parliament's standing committee on finance headed by BJP's Yashwant Sinha to cap FDI at 26%.

Companies Bill
Breaking a legislation deadlock Companies Bill gets the cabinet nod to incorporate crucial changes. The bill deals with the competition law.

Parekh panel suggestions

Parekh panel on financing of infrastructure headed by HDFC chairman Deepak Parekh suggests big-ticket reforms to attract investment in the infrastructure sector, it recommended increasing electricity charges and rail fares.
The committee also recommends 100 per cent foreign direct investment (FDI) in the telecom sector as against current 74 per cent.
The panel also suggested raising prices of natural gas.

The pannel thinks these recommendations will help in attracting Rs 51.46 lakh crore for funding infrastructure sector during the 12th Five Year Plan (2012-17), said the report which was presented to Prime Minister Manmohan Singh.
The report adds, "a time-bound action plan...with a view to improving the enabling environment for private investment which is expected to finance about 47 per cent of the projected investment during the 12th Plan".

Financial Sector Legislative Reforms Commission

The Financial Sector Legislative Reforms Commission(FSLRC), headed by former Justice B. N. Srikrishna suggests key regulators such as the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority (IRDA), the Pension Fund Regulatory and Development Authority (PFRDA) and the Forward Markets Commission (FMC) should be merged into a Unified Financial Agency (UFA).
It also suggested setting up of a financial redressal agency (FRA) to address consumer complaints against companies across the financial sector.
At present, while the stock market is regulated by SEBI, the activities in the commodities market are looked after by the FMC. The insurance sector is regulated by the IRDA, while the PFRDA is responsible for managing the pension sector.
The FSLRC was set up to recast the financial sector legislations in tune with the contemporary requirements of the sector.