RBI vs SEBI

The Bank regulator, RBI and Financial Markets regulator, SEBI have locked horns again over who should regulate the markets of listed/traded instruments. I agree to SEBI' argument that all that is listed or traded in the markets should be under its regulation. Multiple regulators in the same market should be avoided at all costs.

This debate has been going on for a long time. RBI is presently playing the role of Regulator in Banking, Issuer of securities and that of Banker to government. In this scenario its better for RBI to vacate the role of regulating traded instruments as SEBI is more competent in that space.

Government should take immediate steps and relieve RBI of some of the role where its presence is not required. The matter is kept in abeyance for long. Its high time the Finance Ministry take the bold step of handing over the regulation of listed securities to SEBI.

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