With the transfer of senior officials, Finance Minister Jaswant Singh has effected a change in work allocation in his ministry, combining capital market issues under one division and setting up a new cell for multilateral co-operation and foreign investment.
The capital markets division, under the joint secretary for capital markets, will now handle all issues relating to American and global depository receipts and foreign currency convertible bonds, which were earlier under the foreign trade division. The office order issued by the department of economic affairs says the changes are meant to streamline and reorganise its functioning.
However, the reorganisation does not involve the banking, insurance and economic divisions. While the number of joint secretaries in North Block have not been reduced, their work allocation has been altered.
Accordingly, the eight sections of the fund bank divisions have been merged as multilaterals under the newly created multilateral co-operation and foreign investment division. The section will also include issues relating to the Asian Development Bank and the Foreign Investment Promotion Board.
While the fund bank sections were under the direct control of additional secretary for fund banks, ADB issues were under the joint secretary for infrastructure.
The other area under the new division is foreign investment in India, which is also under the foreign trade division. This will include approvals for foreign venture capital, issues relating to non-resident Indian funds and overseas commercial borrowings, as well as a separate desk for foreign investment in the financial services sector.
Significantly, to combat the rising concerns on international financing of terror networks, the finance minister has created a new section called Combating the Financing for Terror. capital markets division will continue to handle overseas commercial borrowings, exchange control, pension reforms and FII-related matters.
Here, too, Singh has created a new capital market securities section. Divestment and public sector enterprises have also been put under the joint secretary for capital markets.
The joint secretary for foreign trade and infrastructure will handle the World Trade Organisation section and Singh's Budget promise to set up the India Development
Initiative. It will also be responsible for bilateral investment issues, besides administering foreign trade and infrastructure, including the critical power and petroleum sectors.
The charge of joint secretary for currency, coinage and administration has been kept almost unchanged. The newly designated joint secretary for the United Nations and bilateral co-operation will be responsible for co-operation with Japan and Europe, as well as for project monitoring units and for supervising budget announcements and vigilance.