Mumbai: At the Gatekeepers of Governance Summit in Mumbai, top policymakers and regulators gathered for the 10th time to tackle a question that just won’t go away: Are there still regulatory overlaps and gaps in India’s financial system? As technology and business models keep racing ahead, every speaker agreed—the problem hasn’t gone anywhere. Fixing it needs constant attention and teamwork.
Ajay Seth, who heads up the Insurance Regulatory and Development Authority of India (IRDAI), got straight to the point. In today’s fast-changing markets, he said, regulators have to work together if they want to keep things honest. He pushed for an inter-regulatory forum and a basic, shared program—something that would cut down on duplicate rules and get everyone on the same page when it comes to codes of conduct. With fintech, non-bank brokers, and homegrown financial institutions playing a bigger role, Seth argued for a clear, united system that sets the ground rules for participation, investment, and cyber safety.
J. Swaminathan, Deputy Governor at the RBI, pointed out that while organisations keep updating their rulebooks and going digital, none of that matters if their intentions aren’t solid. “Weak intent can’t close governance gaps,” he said, urging companies to build cultures that actually value ethics, risk awareness, and accountability. He made it simple: if two activities carry the same risks, they should play by the same rules. He called for outcome-based regulation that can keep up with the way markets really work now.
S. Ramann, Chairman of PFRDA, zeroed in on the risks around new fintech models and small online platforms that lend without proper risk checks. “Regulatory gaps hit consumers directly,” he warned. When the right processes aren’t in place, bad things happen. He also called for better alignment between old and new pension schemes, and more coordination among regulators to keep the system from splintering.
Representing SEBI, Kamlesh C. Varshney highlighted the Financial Stability and Development Council’s role in closing the cracks between different parts of the system. He suggested a “one-place reporting” approach for securities markets, along with regular performance reviews to keep cyber security and investor protection strong—especially since retail investors are getting bolder about challenging valuations.
In the end, everyone circled back to the same idea: Regulatory overlaps and gaps aren’t going away, but the way regulators handle them will shape the future of India’s financial system.