Of course, India needs a regulator or a system that reaches across each silo of the financial market (“Is the stability council a good idea?”, March 10). Whether this is done by a High Level Coordination Committee (HLCC) or a Financial Stability and Development Council (FSDC) is a matter of detail. M Damodaran has pointed out that the HLCC hasn’t covered itself with glory and I Rajaraman points out the FSA in the UK hasn’t been an unmixed success either. None of this should come as a surprise as every system has flaws.
The trick lies in manning bodies wisely and learning from mistakes. If the HLCC can overcome the mistakes pointed out by Damodaran, then we should stick to it. But if the HLCC is not up to the job, we need to try the FSDC.
Ashok Khanna, Gurgaon
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