- Financial Sector Legislative Reforms Commission (FSLRC) Chairman Justice (retd.) B. N. Srikrishna elaborated on the FICCI’s report and said:
- The priority is to mandate a clear, adequate and relevant disclosure made to the consumers by the financial service provider while selling the product or the service.
- It shifts from a regime of ‘Buyer Beware’ to ‘Seller Beware’.
- A separation of the regulatory, investigatory and adjudicatory responsibilities of the financial sector regulatory bodies such as SEBI, RBI and others is necessary as they are for people and not vice-versa.
- Some regulators function as mini States or ‘Nawabs’ and in a democracy, no one, not even the President is above the law.
- A neutral third party, that showed no bias towards investors when adjudicating over violations, is needed and thus the recommendation for building a Financial Sector Appellate Tribunal.
- Far from interfering an denying the flexibility of the regulators, the Tribunal has only increased SEBI’s efficacy.
- Re-engineering of financial regulatory architecture necessary as it would deeply impact the effectiveness of the financial systems.
- Read at:http://www.thehindu.com/todays-paper/tp-business/regulators-function-as-nawabs-srikrishna/article6214870.ece