Beginning of a new decade definitely viewed as opening of new opportunity and challenges for regulators and governing regulations related to various components of capital market. Core question is whether present structure of Capital market is adequate to face and maintain future opportunities and challenges standing ahead of the new decade?
Somesekhar sundaresan has tried to evaluate such challenges of capital market in “Fin sector reform panel has its task cut out in '11”, dated 3/01/2011 in Business standard.
Concern over future challenges can be categorised in following heads:
- Uniformity of the interpretation of various components of capital markets
by regulators
- Adopting existing regulations of capital market with future challenges
and dynism of capital market
-Check and balance structure on various capital market regulators for
stability of market.
As new decade has certainly been going to recognise Indian capital market as a strong presence in the world. Such strong presence always follow by effective and comprehensive regulation of the Indian market in uniform manner. Uniformity is the most critical issue related to interpretation of Indian capital market regulation, and best example is wide interpretation of 'Collective Investment Vehicle' and various hybrid components of capital market like offshore funds.
Last year shall be known for tussle between various regulators on regulation of subjects of capital markets, like ULIP, and role of government for solving above issues has always been taken into consideration by critics of Indian capital market. Hoping for The Financial Sector Legislative Reforms Commission (FSLRC) is expected to be finally set up this year, which may redefine check and balance on various capital market regulators.
