The Standing Committee on Finance (SCOF) is a permanent institution of the Indian Parliament, classified as a Department Related Standing Committee (DRSC). The system of DRSCs was introduced in 1993 to ensure specialized scrutiny and legislative oversight of the Executive by the Legislature, thereby improving parliamentary efficiency. The SCOF was formally set up in April 1993.
The Committee is constituted under Rule 331C of the Rules of Procedure and Conduct of Business in Lok Sabha. It comprises 31 members: 21 from the Lok Sabha and 10 from the Rajya Sabha, with a term of office of one year. Its core function is to consider the Demands for Grants (DFGs) of the concerned Ministries, examine Bills referred to it, and scrutinize annual reports. The Committee's reports, which are based on broad consensus, are persuasive but not binding on the government.
The SCOF connects directly to the Ministry of Finance, the Ministry of Corporate Affairs, the Ministry of Statistics and Programme Implementation, and NITI Aayog. It also exercises jurisdiction over key regulatory bodies like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). A significant change occurred in July 2004 during the 14th Lok Sabha, when the Committee's membership was reduced from the initial 45 to the current 31 members. Recently, the Committee has been examining the Securities Market Code Bill, 2025, which proposes to merge the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, and the Depositories Act, 1996.