Single regulator for financial sector?
Economic Times, March 26, 2013(Also read online comments) Why high finance needs just one regulator Hema Ramakrishnan Monday March 25, 2013, 04:48 AM Justice Bellur Narayanaswamy Srikrishna is known for his ability to complete any task entrusted to him within the deadline. That’s what the Chairman of the Financial Services Legislative Reforms Commission (FSLRC) did on Friday when he handed over the report on recasting India ’s financial sector laws to finance minister P Chidambaram. The FSLRC’s core recommendation to have a unified financial regulatory agency to oversee all segments of the financial sector, barring banking and payments, will ruffle regulators who are bent on protecting their turfs. However, unified regulation makes eminent sense, especially when boundaries among financial products are getting blurred. A single agency, entrusted with micro prudential regulation, will reduce the chances of financial collapse and bring down systemic risks. It is a