New Delhi, Feb. 1 -- Finance minister Nirmala Sitharaman said a mechanism would be set up under the Financial Stability and Development Council (FSDC) to evaluate the impact of financial regulations and subsidiary instructions.

The initiative will also formulate a framework to enhance the responsiveness and development of the financial sector, Sitharaman said in her budget speech on Saturday.

The proposed mechanism will assess the effectiveness of financial regulations and ensure they are aligned with the evolving needs of the market and contribute to stability. It will focus on enhancing the adaptability of the financial sector to future challenges.

The FSDC, established in 2010, has worked to streamline and stabilize the financial se...