My View on t "Better regulatory coordination vital":
Last couple of years have seen a welcome rise in the awareness level about the role of regulation and regulators in governance and management of resources in general. Perhaps, CAG Vinod Rai’s 2G report made the beginning of a new phase in the financial history of India. Still, we have seen regulators remaining silent spectators, when their sacred ‘space’ was being encroached by political masters through ‘executive’ actions, which on several occasions did not stand scrutiny, or had to be rushed through back-door maneuverings in legislatures. AADHAAR, National Pension System, coal mines allocation, oil pricing…the list can go on and on, if examples are needed.
As M Damodaran put it, when regulated entities-these include government and public sector-‘move from one unregulated jurisdiction to another’ or find out means to circumvent need for legislative changes, the burden of the regulators increase. In such situations, coordination and fast sharing of information among regulators become crucial.
In the present scenario, in the financial sector, one cannot think of a better organisation other than Reserve bank of India to entrust the responsibility to put in place a coordination mechanism to ensure that all financial transactions higher than a pre-decided bench-mark complies with the regulatory norms of the body responsible to oversee such transactions. Perhaps, the finance minister could discuss this issue during his pre-budget interactions with RBI and other regulators in the financial sector.
- M G Warrier
No comments:
Post a Comment