Cabinet approves PFRDA, SBI amendment bill

Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

The Cabinet today approved two key financial sector bills. The first is the SBI (Subsidiary Bank Laws) Amendment Bill, which will give the central government power to alter the authorised capital of a subsidiary bank and determine the quantum of issued capital of SBI subsidiaries as well as issue bonus shares.

The Bill would also help in speeding up SBI plans to merge its five subsidiaries, which the Finance Ministry wants to complete within the next 18 months. The Cabinet also approved the Pension Fund Regulatory and Development Authority Bill, which proposes to make the PFRDA a statutory body. Both Bills would now be introduced in Parliament in the current Budget session.

In the absence of statutory status, PFRDA was performing the role of the interim regulator.

Finance Minister Pranab Mukherjee had sought the support of the opposition, mainly the BJP, for passage of the key pending reform bills.