Ghosh flays regulators for loopholes

CALCUTTA, June 14: Former State Bank of India chairman D N Ghosh today lashed out at the regulatory authorities for failing to come out with consistent policy measures, and suggested quot;continuous interractionsquot; with market operators for tackling crisis-situations.

Ghosh said the knee-jerk reactions of the regulators are evident as, contrary to the global trends of integrating the financial markets, the Securities amp; Exchange Board of India has initiated moves to compartmentalise merchant banking operations after the CRB fiasco.

Speaking at a seminar on Credit Rating and Capital Market Reforms8217; organised by the Institute of Chartered Accountants of India, Ghosh said: quot;At a time when every economy is striving towards achieving intergration of the financial markets, the stock market regulator in India has started preaching the merits of compartmentalisation. The regulators8217; approach of swinging from one phase to another can have disastrous consequences.quot;