FM Sitharaman to chair 29th FSDC meeting on June 10; RBI, SEBI chiefs to attend

Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman will convene the Financial Stability and Development Council (FSDC) meeting on June 10 in Mumbai. The high-level meeting to be attended by all key financial regulators and top finance ministry officials will take stock of the domestic and global macroeconomic situation, financial stability risks and progress on key financial sector reforms.

With persistent global uncertainties, the minister is expected to assess systemic vulnerabilities and align regulatory priorities with the government’s policy agenda, government sources said.

This would be the 29th meeting of the council.

The meeting will be attended by heads of all major financial sector regulators -- including Reserve Bank of India (RBI) Governor Sanjay Malhotra, SEBI Chairman Tuhin Kanta Pandey, IBBI Chairman Ravi Mital, and PFRDA Chairperson Sviasubramanian Ramann -- along with top officials from the finance ministry, including Economic Affairs Secretary Ajay Seth, Revenue Secretary Arvind Shrivastava, and Financial Services Secretary M Nagaraju.

Global Pressures

The FSDC is expected to assess systemic vulnerabilities amid growing global headwinds, such as heightened geopolitical tensions and capital flow volatility. The Financial Stability and Development Council (FSDC) plays a crucial role in safeguarding the financial system. When assessing systemic vulnerabilities, especially amid growing global headwinds, its work becomes even more critical.

"Financial stability in the face of global spillovers remain key priorities," a government source told Moneycontrol.

Sources said the minister is also likely to review how well the financial regulatory ecosystem is aligned with the broader policy priorities laid, including credit access for MSMEs, deepening the bond market and financial inclusion.

Sub-Committee Review

The council will also review the functioning of the FSDC sub-committee chaired by the RBI Governor. The chairman of the FSDC sub-committee is the governor of the RBI. This sub-committee, also known as FSDC-SC is responsible for reviewing global and domestic financial developments and issues related to inter-regulatory coordination in the Indian financial sector.

Why This Meeting Matters

The meeting review is critical for shaping financial sector strategy going forward.

Set up in 2010, the FSDC is India’s apex forum for financial stability coordination. Its deliberations serve as a bellwether for the government’s economic risk assessment and its priorities for deepening capital markets, ensuring regulatory cohesion, and promoting inclusive financial development.