This refers to the editorial “A growing distance” (December 14). Instances of the finance ministry’s attempt to act as a super regulator over all regulatory bodies in the financial sector are becoming increasingly common. This will destabilise the equilibrium deftly built by eminent individuals who headed the finance ministry and the Reserve Bank of India (RBI) in the formative years of financial regulation in India (there were few regulators in the financial sector, almost till the reform days), and consciously maintained by their successors till the recent past.
Recent developments have once again brought to the fore the need for mutual discussions, internal acceptance of extant legal position and traditions by the controlling ministry/ministries at the Centre and providing opportunity to the regulatory bodies concerned to be heard before super-imposing or giving loud instructions on what is felt as right by the North Block. It is not a comfortable sight to see the government and regulators putting forth their arguments before courts and media, even before such consultations. One wishes such disputes are resolved amicably across the table. The sound health of the sector can be ensured by allowing all regulators and supervisors to feel the freedom to perform their mandated responsibilities .
M G Warrier, Thiruvananthapuram
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