 bill  no  lv of  2008 the national financial services authority bill, 2008 a billto provide for the establishment of a national financial  services authority and formatters connected therewith or incidental theretobe it enacted by parliament in the fifty-ninth year of the republic of india as follows:—1 (1) this act may be called the  national financial services authority act, 2008(2) it shall be deemed to have come into force on the 31st day of october, 2008short title and commencement52 in this act, unless the context otherwise requires,—definitions(a) "national authority" means the national financial services authorityconstituted under sub-section (1) of section 3(b)  "prescribed" means prescribed by rules made under this actconstitution of national financial service authority(2) the national authority shall consist of the following persons, namely,— (a)  an economist of eminence and international repute—as chairperson, who shall be of the rank of cabinet secretary;5(b) not more than three members of the rank of secretary to the government of india to be appointed by the central government from amongst persons having experience in the fields of finance and business management, banking, monetary, economic and judiciary:10provided  if  the powers of the national authority are vested in an individual, such individual shall be entitled to the same powers and functions and shall be assisted or provided with the same  secretarial support and technical expertise as are  available to national  authority consisting of more than one person under this act(3) the head office of the national authority shall be in delhi (4) the national authority may appoint such number of officers and employees as it considers necessary for the efficient discharge of its functions under this act15(5) the qualifications and experience, terms of office and allowances of the members, officers and employees of the national authority shall be such, as may be prescribed4  the powers and functions of the national authority, shall, inter alia include,—powers and functions of national authority20(i) to advise the reserve bank of india on regulating the long term structural featuressuch as capital inflows including external commercial borrowings, participatory notes, etc;(ii) to consider steps on bringing about financial liberalisation and easing capital control;(iii) to consider the advisability of the level of liquidity required to be maintainedby the banks and the cash reserve ratio;25(iv) to advise the reserve bank of india on reforms for the financial sector includingbanks under its control and private financial institutions and related aspects;(v) to study and make recommendations on all aspects related to the capital accountliberalisation30annual report5 the national authority shall prepare in such manner and form and at such timein each financial year, as may be prescribed, its annual report giving a full account  of its activities and recommendations on the functions assigned to it during the previous financial year and submit it  to the central government356 the central government shall cause the annual report of the national authorityto be laid, as soon as may be after they are received before each house of parliamentannual report to be laid before the parliament power to make rules7  (1) the central government may, by notification in the official gazette, make rules to carry out the purposes of this act(2) in particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely:—40(a) the method of the appointment of the national authority; (b) the composition of the national authority; (c) the reports of the national authority to be submitted to the government; (d) any matter or matters not expressly provided for in the act,  but considered necessary for the appointment and functioning of the national authority statement  of  objects  and  reasonswith the globalisation of the international trade and commerce, large scale inflows of the capital from the developed to developing countries and also the outsourcing of business, many disturbing financial trends have become visible it is necessary to diagnose them before they damage the economy of the country at the same time, it is necessary to control the monetary supply to curb inflation and  other related financial impacts on trade and commercehence this billn k singh financial memorandumclause 3 of the bill seeks to constitute the national financial services authority and makes provisions for salary and allowances of the members, officers and employees of the authoritythe bill, if enacted will involve expenditure from the consolidated fund of india it is estimated that a sum of rupees two hundred crore may involve as recurring expenditure from the consolidated  fund of indiaa non-recurring expenditure of rupees fifty crore is also likely to be incurred memorandum  regarding  delegated  legislationclause 7 of the bill empowers the central government to make rules for carrying out the purposes of the bill the rules will relate to matters of details only as such the delegation of legislative power is of normal character———— a billto provide for the establishment of a national financial services authority  and for matters connected therewith or incidental thereto————(shri n k singh, mp)gmgipmrnd—4761rs(s-5)—29-12-2008