Disagreeing with Srikrishna panel's suggestions, Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan has said that India does not need super regulator for financial sector markets but need better co-ordination among existing ones.
"At this particular time, it may be advisable to continue with the existing system, rationalise the overlap if there are any and and try to improve the co-ordination among different regulators," said Rangarajan. "We still have not reached a stage in which our various financial segments have developed to the full extent."
Citing examples, he further said that "the experience that is now available does not point to a very clear evidence as to which is better. The UK had a single regulator and it ran into problems. The US had multiple regulators and they also ran into problems."
Justice BN Srikrishna-headed financial sector legislative reforms commission's draft report has suggested setting up a single regulator for financial markets.
It, however, had proposed to keep banking out of the regulator's purview and had also suggested setting up of a financial redressal agency to address consumer complaints against companies across the financial sector.
"The draft report talks in terms of a single regulator for all financial other than banking. This again is not very consistent," said Rangarajan.