Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan, disagreeing with Srikrishna panel’s suggestions has said that India does not need super regulator for financial sector but need better co-ordination among existing regulators.
Rangarajan has said that 'at this particular time, it may be advisable to continue with existing system, rationalize the overlap if there are any and try to improve the co-ordination among different regulators.'
Justice B N Srikrishna-headed Financial Sector Legislative Reforms Commission's draft report that after studying possible reforms in the financial sector has suggested a merger of multiple financial regulatory agencies into one overarching authority that would have oversight of the capital market, insurance sector, pension funds and commodities futures trading. The combined authority would also take over regulation of organized financial trading (bonds, currencies, derivatives) from the Reserve Bank of India.
However, PMEAC chief who is a former Reserve Bank governor stated that 'we still have not reached a stage in which our various financial segments have developed to full extent.'
