With a view to establishing a body to institutionalise and strengthen the mechanism for maintaining financial stability, financial sector development and inter-regulatory coordination, in December 2010, the Government constituted the Financial Stability and Development Council (FSDC) to be chaired by the Finance Minister. The FSDC is to be assisted by a Sub-Committee to be chaired by the Governor, RBI.
This Sub-Committee has replaced the erstwhile High Level Coordination Committee on Financial Markets (HLCCFM) under the chairmanship of Governor, RBI. While constituting the FSDC, the Government held out a clear assurance that the setting up of the FSDC will not in any way erode the autonomy of the regulators. 51.