Regulatory Structure for Financial Stability and Development

Stricter regulatory surveillance in emerging market economies (EMEs) largely insulated their financial systems from the crisis. Development and convergence of regulatory apparatus has been rapid. In some respects, EMEs may be closer to new global norms. The development of financial markets, however, is a major aim for regulation in EMEs along with financial stability. The success in achieving these objectives in the Indian case is examined. Some problems of regulatory overlap and coordination should be resolved keeping in mind the lessons of the crisis.