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Needed, regulatory reforms

S. Subramanyan, e-mail

The articles, `We're not to blame: RBI Official', and `Not our fault, say SEBI officials' (Business line, April 4) graphically portrays to the public the bane of the current multi-regulatory system. This amusing, but unseemly spectacle of regulatory turf wars is noticed every time there is a scam.

The Government cannot delay structural regulatory reforms any more. It should issue a consultation document reviewing the performance of the regulators, offering possible alternatives with its tentative recommendation of a single regulatory structure, wh ich will take care of the requirements of the financial services industry for the next two decades.

After a consultation period of, say, three months during which the document will be debated publicly at various levels, the Government can arrive at the decision.

Simultaneous with the regulatory review, there is also a need to review the range and scope of the selection of top personnel for the regulatory bodies. At present, these are almost always filled by retiring bureaucrats.

With innovative products being developed by the financial services industry, expertise in the field should be the main consideration for the top regulatory positions.

There is plenty of talent in the financial services industry -- both private and public -- of highly qualified individuals with wide experience, proven merit and integrity, which can be the source material for the chief and other top personnel of the new unitary regulator.