FSLRC and the Concept of Super Regulator

Abstract

Financial Sector Legislative Reforms Commission (FSLRC) which was constituted by the Government of India, Ministry of Finance, in March, 2011, was mainly set up to review and restructure the legal and institutional structures of the financial sector in India. FSLRC issued its report covering various issues to bring out coherence in the financial regulatory framework of India. Owing to jurisdictional conflicts between regulators in India, there arose need to have a super regulator in India. Thus, in order to analyze whether the concept of super regulator is apt for India, a comparison is made with the financial regulation of the USA and the UK. While the USA, has the concept of multiple regulators, with an authority referred to as “lead regulator” who would supervise the work of the regulators without intervention with the functioning of individual regulators. The UK on the other hand, has the concept of “super regulator”. Thus, by comparing with the financial regulation of the USA and the UK, an analysis is made as to which is a viable option for India- Super Regulator or Lead Regulator.