Much to thank Kejriwal and Baijal for

When a vague and open veto power resides with an external authority, the effectiveness of its usage lies in the absence of confrontation. Only a litigious battle can put these arrangements to rest

The stand-off between the elected Delhi government and the unelected bureaucrat Lt Governor appointed by the Union government has seen a ceasefire for now. There are lessons to be learnt from this for the regulatory system that governs almost all the business and the economic activities in the country — ranging from financial markets to telecommunications to food.

The similarities are stark. The elected Delhi government owes its existence to the Constitution of India that was specifically amended to create the space it occupies. Regulators such as the Securities and Exchange Board of India (Sebi), the Insurance Regulatory and Development