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Regulation of wellness vs wealth offers a contrasting picture

The regulators of wealth in India are empowered and autonomous, unlike the regulators of wellness, leading to very different outcomes in the two sectors

Illustration: Binay Sinha
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Illustration: Binay Sinha

K P Krishnan
Regulation is a form of state intervention to correct market failures. Though we see this very visibly in finance, this approach to regulation is not restricted to the financial sector. State intervention is necessary when the free market yields inefficient and poor outcomes. Regulation usually involves creation of arm’s length statutory authorities that are empowered and autonomous.

The Reserve Bank of India (RBI) regulates banking and payment systems and conducts monetary policy, autonomously and at a distance from political considerations that are likely to influence actions of the Ministry of Finance. Likewise, unlike its predecessor, the Controller of Capital Issues (CCI),
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Oct 17 2022 | 10:42 PM IST

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