The article reads well and has brought
out some of the inhibiting factors in the effective regulation of the
financial system by sighting poor legal design, systemic problem, lack
of autonomy, and auditing a regulator.As long as the Govt has some
designs as to how the various markets and institutions have to be run
partially to satisfy the political agenda,one cannot expect to have a
perfect regulatory mechanism to regulate the financial system. The Govt
wants in built flexibility in any regulation and that affects the
Institutions' functional autonomy. The so called operational autonomy
autonomy is always dependent upon the person who heads the institution
and for how long?The FSLRCS recommendations, however, need to be
publicly and thoroughly debated as there are lot of conflicting
regulatory interests which can precipitate and take advantage of
regulatory gaps.The gaps can result in some catastrophe.
Dr.T.V.Gopalakrishnan
This comment appeared in Busines Line dated 9/4/13 in response to an Article 'We need a unified regulator'.
