Balanced regulation vital for growth, says Uday Kotak

economictimes.indiatimes.com:

Kotak Mahindra Bank founder Uday Kotak on Tuesday pitched for a balanced regulatory approach across sectors, contending that too many «guardrails» could weigh down India's growth and hurt its journey towards being a developed nation, while too few of them could invite trouble. The regulators, he suggested, should avoid undue and excessive caution but instead respond swiftly to crises or «accidents», he said.

Addressing a two-day conference of the National Financial Reporting Authority (NFRA), Kotak said sacrificing growth to tackle risks is not a solution but problems need to be dealt with in an innovative manner. Kotak's comments come at a time when watchdogs across the financial sector-from the Reserve Bank of India to the Competition Commission of India-are increasingly facing pressure to balance regulations with innovation, especially due to the fast-paced evolution in the technology space.
He said the aspirational annual growth rate of 7.5-8% over the next 20-25 years will require significant capacity building to match up to the fast transformation in the economic landscape.

«It also requires a sense of dreaming. It requires a sense of creativity, entrepreneurship, and professionals (need to be) ready to take risks without fear,» he said.