Bhubaneswar, March 19: The concept of a “super regulator” proposed by the Reserve Bank of India for the financial sector was opposed by Sebi chairman M. Damodaran.
Damodaran, in the city to attend the convocation of a business school, said existing regulations are adequate and do not merit a unified umbrella regulatory body. “I don’t think you are going to see a new model in a hurry just because somewhere else it is being implemented,” he said.
Pointing out that regulating entities are now having overlapping interests, he said there is a system of a lead regulator to ensure co-ordinated regulation. “I think this model is working well in India,” he added. On the regulation of the mutual fund industry, he said the fee structure should be based on the tenure of the fund and not on transaction. The distribution activities should be regulated so that distributors do not take away too much money from the system.