‘Regulators should have the capacity to intervene when any market crisis happens’

Speaking at the inaugural session, ‘Creating a robust financial architecture’, of the 9th edition of The India Finance Forum 2018 - Driving performance, business value in a digital world, organised by Confederation of Indian Industry, Dr. Anantha Nageswaran

‘Regulators should have the capacity to intervene when any market crisis happens’

Dr. Anantha Nageswaran, Dean, IFMR GSB, KREA University at CII event.

Speaking at the inaugural session, ‘Creating a robust financial architecture’, of the 9th edition of The India Finance Forum 2018 - Driving performance, business value in a digital world, organised by Confederation of Indian Industry, Dr. Anantha Nageswaran, Dean, IFMR Graduate School of Business, KREA University, said, “Regulators should have the capacity to intervene when any market crisis happens and this can be possible only if a rational economic behaviour exists at all levels of financial system. RBI Governor has to maintain status quo amid talk about the government resorting to populist measures in the run-up to the general elections”.

Referring to the Usha Thorat panel, Dr. Nageswaran mentioned that RBI’s capital has far exceeded the recommendation of the panel which was set up in 2004. “A robust financial architecture cannot be accomplished without a robust financial regulation. We should also think whether it is right to adopt an inflation-targeting regime for a developing economy like India. There is a case for distributing it back to the shareholder, which is the government, but it should be transferred to a specific mean, instead of transferring to the Consolidated Fund of India,” he added.

The conference organised by CII focussed on the financial landscape, the changes and its impact on the financial architecture and touched upon policy regulations post the collapse of the Lehmann brothers and how the past decade has seen the global financial system transform drastically which have strengthened the financial system while Banks have bolstered their balance sheets and how technology also revamped the financial landscape with alternative lending models and fintech companies.

The session was opened by Mr S Mahalingam, Chairman, CII SR Economic Policy Sub-committee 2018-19 & Past Chairman, CII-SR and key note address was given by Mr R Seshasayee Past President, CII & Chairman, IndusInd Bank, who said, “There is a need to create the right kind of ecosystem as internet explosion, block chain and other technologies are at an inflection point now India has to leapfrog in terms of technology adaptation in various fields, including agriculture”.

Among other dignitaries also present were - Mr Sumit Dutt Majumder, Former Chairman CBEC; Mr G Mahalingam, Whole Time Director - Securities Exchange Board of India; Mr R Raghavan, Partner, Lakshmikumaran & Sridharan Attorneys. Closing remarks were made by Mr Gopal Mahadevan Co - Chairman, CII SR Economic Policy Sub-committee & President – Customer Solutions Business & CFO Ashok Leyland Ltd.