Focus on capital formation policy

It is vital to ensure that the clamour for suspending bankruptcy laws does not translate into reality

The economic impact of the response to Covid-19 begins to hurt. This is when the securities market regulator has a fantastic opportunity to dust off the entire framework for capital raising and look at requirements that have outlived their purpose and improve the ease of raising capital without compromising the objective of investor protection.

Each of these labels is easy to agree on. It is in the detail of what constitutes inconvenience in capital raising and what constitutes leaving an investor vulnerable that policymakers can differ until the cows come home. For starters, the Securities and Exchange Board of India