Finance sector suffers from 'hyperactive regulatory activity': M Damodaran

Speaking at the summit, the former bureaucrat added the need for specialised talent in the regulatory bodies, ranging from lawyers to accountants and auditors

Regulatory capacity, hyperactivity and excessive prescription are the biggest challenges the financial sector is facing, said Meleveetil Damodaran, former chairperson, Securities and Exchange Board of India (Sebi).

Speaking at the Business Standard BFSI Summit on Wednesday, Damodaran highlighted the need for simpler, clear, and continuous regulations in the financial sector. He opined that the industry had felt it challenging to keep pace with the changing regulations.

“Post 2008, financial sector regulation is suffering from excessive activity. There has been regulatory hyperactivity in order to justify one’s existence. It is not just regulators but includes rating agencies and investment bankers, and