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Indian financial market regulation: A dialectic model

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  • Vashishtha, Ashutosh
  • Sharma, Anil K.

Abstract

The regulatory model presented in this paper has its evolution in the views and motives of three distinct interest-groups, namely, regulators, financial institutions and investors. The model structurally symbolises a partly unified or ‘lead’ model. One may see this as consensus model representing a rallying point for financial market participatory groups. The basic premise on which the model rests is expectedly its ability to ensure, besides other factors, communication and coordination among regulators for dealing with some of the major problems, in particular, regulatory arbitrage, posed by modern complex financial markets. It is an experimental, tentative approach to the problem of effectiveness of financial regulation the importance of which is being seen today with growing concern and interest. A distinguishing feature of the approach is its admission of collective wisdom as one plausible way of examining the relationship between regulatory effectiveness and regulatory architecture.

Suggested Citation

  • Vashishtha, Ashutosh & Sharma, Anil K., 2012. "Indian financial market regulation: A dialectic model," Journal of Economics and Business, Elsevier, vol. 64(1), pages 77-89.
  • Handle: RePEc:eee:jebusi:v:64:y:2012:i:1:p:77-89
    DOI: 10.1016/j.jeconbus.2011.05.002
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    References listed on IDEAS

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    1. Fred Furlong & Simon Kwan, 1999. "Financial Modernization and Regulation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 16(2), pages 95-100, December.
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    6. Richard Herring, 1994. "International Financial Integration: The Continuing Process," Center for Financial Institutions Working Papers 94-23, Wharton School Center for Financial Institutions, University of Pennsylvania.
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    9. Taylor, Michael & Fleming, Alex, 1999. "Integrated financial supervision : lessons of Northern European experience," Policy Research Working Paper Series 2223, The World Bank.
    10. Giorgio Di Giorgio & Carmine Di Noia & Laura Piatti, 2000. "Financial Market Regulation: The Case of Italy and a Proposal for the Euro Area," Center for Financial Institutions Working Papers 00-24, Wharton School Center for Financial Institutions, University of Pennsylvania.
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    More about this item

    Keywords

    Financial regulation; Dialectic; Unified model; Lead model; Logit regression;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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