The finance ministry is assessing all financial regulators in the country and their respective regulatory frameworks to evaluate whether over-regulation is stifling economic activity. According to official sources, the ministry is preparing a draft paper, which will highlight the regulatory provisions that should be relaxed in order to support growth and encourage innovation. The government in the upcoming Union Budget might announce its intention to relax regulations, though concrete steps would be taken only with the benefit of deductions from the ongoing review of regulatory functions and rules, said the sources.