Edited excerpts: I would interpret this as each regulator doing what they are doing in terms of good housekeeping and making sure that rules are followed. Making sure that disclosures are adequate, and processes are in place. I don't know if there is a master plan which is suddenly combining everything together, but I would say each of the regulators in their domain is doing things.
Like Insurance Regulatory and Development Authority (IRDAI) is having ongoing discussion with companies about surrender value of policies. This is part of regulatory review of things which are happening in the marketplace and then seeing how it can be made more foolproof. So, it will always be a combination of disclosure, new regulations, and processes and eventually perhaps an action against some people which we have seen in the case of the Reserve Bank of India (RBI) where there has been action against certain entities.
No. There are systemic issues, like the RBI raising risk weights on unsecured lending, which is part of typical prudence that you would expect from a central bank and many people have looked at this data of unsecured lending and said it was warranted. I think RBI has done the right thing in terms of acting on it.
That to my mind is a systemic issue that one would worry about as it could have an impact on the financial system. Other issues may not be systemic in nature, being restricted to a few individual entities. We always look at things from the prism of valuation.
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