Its very curious to read about two regulators that under the same finance ministry, slug it out in the open! It must be most embarassing for the Minister or am I being very naive? Embarassments apart, the issue itself is very interesting. I think ULIPs appears to step on the SEBI's domain whilst being under the IRDA purview. So, the friction.. But the news reporting is very funny. They end by saying the government must intervene! But the two regulators are under the same Ministry and are part of the Government machinary already. Imagine the plight of confused investors!
If this is the case when its confined to the same ministry, imagine the ego trip when two or more ministries involved! Very often the issue takes a backseat and it becomes a ego issue of who is more powerful and whose muscles are stronger, be it among the Babus in the respective Ministries or the Ministers themselves. Sometimes, I wonder how any decision ever sees the light the day even if it does have the blessings of either the bureaucrats or the minsiters. I do think this British legacy we seem to have inherited has more minuses than pluses.
2 comments:
The IRDA Chairman has said even though he may not legally have the power "to quash SEBI's instructions to Insurance Companies", he has the power "to direct Insurance Companies to whatever he wants them to do". What does that mean?
It means that 'he has' and yet 'he does not' have the power:). Now you figure - this is politico-speak
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