Super-regulator for financial sector mooted | Business Standard

Super-regulator for financial sector mooted | Business Standard

Even before the full report is available, it seems appropriate to comment on the following report:

“When the unified regulator, to be called the Unified Financial Agency (UFA), got some experience, the panel said, RBI should be merged with it. The panel suggested that the Securities and Exchange Board of India (Sebi), the Insurance Regulatory and Development Authority (Irda), the Pension Fund Regulatory and Development Authority (PFRDA) and the Forward Markets Commission (FMC) be subsumed under UFA.”

If the media has not got it wrong, the idea of creating a Unified Financial Agency for all financial regulators except RBI, truncating RBI by separating Public debt Management and keeping the agency doing that work(presumably with the same work force) in RBI premises, later UFA subsuming even RBI all give a feeling that the FSLRC had many masters to serve and in the eagerness to satisfy all, it has forgotten its own brief.

Perhaps the purpose would be served better, if RBI is allowed to function with its present mandates, a coordination committee sorts out issues among the remaining regulators and if GOI aim is to reduce the number of regulators, merge with RBI, the agencies outside RBI one by one as work stabilizes. The goal of one Unified Financia Agency would be better achieved this way.  


Popular posts from this blog


The King of Ragas: Sankarabharanam