Monday, January 14, 2008

Rules vs. principles

[The United Nations should establish a monitoring unit devoted not to elections, but to the work of election commissions. -- Observe Early and Often By EDWARD P. JOSEPH, NYT]
[I think some people on some occasions do tend to interpret laws, rules, regulations differently. This brings me to a larger subject the philosophical debate of principles based regulations and rules based regulations. Everybody seems to be arguing against rules and in favour of principles. But you talk to people at middle levels and compliance functionaries and they will tell you that they want the rules to be written out in all the specificities because we are the guys whose heads are on the chopping block and our higher management might talk about principle based regulations. A healthy compromise between those is what we are attempting. -- 'Brokers, FIIs, banks will comply better if the writing of regulation is a consultative process' SEBI chairman M. Damodaran In an interaction with Express staff, Date: 13-Jan-2008]
[Regulation succeeds market; else it would kill the market. If you grow a market in size, one individual will not have a disproportionate influence in the market. There is an element of investor protection in this. -- M. Damodaran 'India's first self-regulatory organisation within a year' ET 14 Jan, 2008]
Should the regulators be elected by the people, considering the clout they acquire as the market expands? [TNM]

No comments:

Post a Comment