Liberalisation and the free play of market forces warrants a monitoring authority empowered to lay down the ground rules to guide the behaviour of participants. The monitoring authorities so constituted are known as regulatory bodies.
Liberalisation of various industries, one after the other, has led to the creation of host of regulatory bodies across geographies with an open-market architecture. A regulator is a ‘mini-state’ with quasi-legislative, executive and quasi-judicial responsibilities. Legislation, including subordinate legislation, is an outcome of policy-think. Regulatory policies so conceived must lead to the efficacy of the markets and efficient outcomes.
Liberal markets enable greater individual freedom culminating in higher creativity and innovation. However, the ingenuity of market participants often unleashes exploitative approaches to profits arising out of kinks in the regulatory process. The watchful eyes of the authority must enable it to take notice and deal with market misconduct appropriately, prevent injury to other participants and maintain the rhythm of the market.
Flawed adherence
Multiplicity of misconduct and changing dynamics of the market have led to complex web of regulatory framework, which is becoming craftier by the day. Adherence to regulatory direction sometimes distorts the market and obstructs free play. It is, therefore, important for the regulatory authority to assess the propensity of enforcement before laying the regulation. The authority should also assess the possible consequences and ring-fence with safeguards to minimise the adverse impact. It will do well to recall, some widely known examples from our financial markets in this context.
Diese Geschichte stammt aus der October 01, 2019-Ausgabe von The Hindu Business Line.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der October 01, 2019-Ausgabe von The Hindu Business Line.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Covid Presents An Opportunity For India
India must attract investors exiting China post-Covid. Streamlining of project clearances and relaxation in FRBM norms will help
Did Alternative Assets Shield You From Covid-19 Volatility?
The assets closely linked to stock and debt markets could not stave off the losses
How To Put Aircraft To Bed
Preserving grounded planes, to get them up and flying at short notice, is a challenging task. Ashwini Phadnis captures the process
There Can Be No Going Back On WFH
Covid-19 has fast-forwarded the shift to ‘work from home’. However, some face-to-face connect will always be needed
UN, WHO Urged To Ensure ‘Benefit Sharing' Of Covid-Related Data
Biopharma firms should reach vaccines, medicines to poor nations at an affordable price, say civil society bodies
With No Clear Signal From Rlys, States Explore Ways To Bring Back Migrants
Quarantine centres, cross-country buses being arranged even as migrants hop on to boats, trucks and ambulances
Centre Allows All Neighbourhood Shops To Open But With Riders
Final call will be taken by local authorities; shopping complexes that draw fewer ‘outsiders’ are permitted to operate
Covid Impact Relatively Muted In India
Compared to Italy and the US, India’s rate of infection spread has been slow. This can be attributed to the strict measures in place
How Global Trade Will Fare Post-Covid
China isn’t likely to lose its pre-eminent position soon. India, for one, will need to make manufacturing globally competitive
How To Curb Harassment In The Virtual Office
Training and sensitisation are essential. Institute a strict dress code and chat etiquette to ensure professionalism during video calls