Union Finance Minister P. Chidambaram on Monday pulled up "unregulated" players in the market, and said that their activities have adversely impacted a large number of consumers in the country, which has caused "systematic instability".
"Given the speed and dynamism with which the financial sector operates it generates new space, sometimes "undefined" areas, which provide opportunities for "unregulated" players in the market," Chidambaram said at a national seminar on 'Indian Financial Code', organized by the Institute of Company Secretaries of India here today.
"The existences of such (unregulated) players who operate in the twilight zone endanger the discipline of the markets leading to systemic instability. Invariably such activities adversely impact a large number of consumers," Chidambaram added.
Chidambaram also elaborated on the recent Ordinance which was passed by the government on September 16, which aimed at filling up the loopholes to protect the interests of the consumers from being exploited by these unregulated players, and said that the Centre's endeavor was to eliminate the unregulated source.
"The Ordinance which considers any raising of resources by whatever means if not regulated otherwise as a collective investment scheme. Our endeavour is to eliminate unregulated source," Chidambaram said.
Noting that India had implemented many economic reforms under the UPA regime, Chidambaram said that India had moved at a reasonable pace in bringing in financial reforms, but admitted the speed was not good enough at present.
The UPA regime has been severely criticised for its economic policies recently, after the rupee has rapidly decline against the U.S. dollar in recent months.
The rupee, on Monday, closed at 62.60 against the U.S. dollar.
