Some of the regulators oppose FSlRC recommendations as they feel that they would lose jurisdiction on some of the aspects, Justice (Retd) B N Srikrishna, who headed the high-level panel, said on Tuesday.
"They are opposed to it. What happens is their jurisdiction gets cut down. Any regulator is going to oppose it because it will put a cap on the power that he exerts. He is made answerable to somebody else," Srikrishna said. When asked about his reaction to the recent remarks made by RBI Governor Raghuram Rajan on Financial Sector legislative Reforms Commission (FSlRC) recommendations, he said: "I am a judge so I know how to moderate it."
Rajan had recently flayed the much talked about Financial Sector legislative Reforms Commission (FSlRC) and described one set of its recommendations as "somewhat schizophrenic".
Earlier in his address at Financial Sector Conclave (FINSEC – 2014) organsied by Ficci, Srikrishna said the RBI Governor as an academician (prior to RBI job) has suggested that regulatory actions shuld be subject to appeals. "In the years since the Securities Appellate Tribunal was set up to hear appeals from the SEBI orders, the quality of SEBI orders has increased. And so has the quality of SAT decisions. Regulators should take comfort in this fact.