Page 270 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Unit 14: Regulatory Environment

Self Regulations: Framed by various industry association that govern its members activities, Notes
code of conduct and settlement of disputes between them.
Structural Regulation: Type of activities that different forms of institutions are permitted to
engage in.

14.10 Review Questions

1. Why scams and defaults occur quite frequently in the financial service industry despite
regulations?
2. How do you classify the existing regulations governing the financial service industry on
the basis of their scope?

3. What is the role of regulations in a free market economy?
4. How does SEBI regulate fund-based and fee-based activities?
5. What are the objectives of self-regulations? Do you feel self-regulations are better than
formal regulations?

Answers: Self Assessment

1. investor protection 2. capital allocation
3. commercial banks 4. The Banking Laws (Miscellaneous
Provisions)
5. Monetary 6. False
7. True 8. False
9. True 10. False

14.11 Further Readings

Books Brian Anderton, 1995, Current Issues in Financial Services, Macmillan Press: London.

K. Subramanian and T.K.Velayudham, 1997, Banking Reforms in India: Managing
Change, Tata-McGraw Hill Publishing Co., New Delhi.
L.M. Bhole, 1992, Financial Institutions and Markets: Structure, Growth and Innovations,
Tata-McGraw Hill Publishing Co., New Delhi.
M.A. Kohok, 1993, Financial Services in India, Digvijay Publications: Nashik.
M.Y. Khan, 1997, Financial Services, Tata McGraw-Hill Publishing Co.: New Delhi.

Meir Kohn, 1994, Financial Institutions and Markets, McGraw-Hill Inc.: New York.
Peter S. Rose & James W. Kolari, 1995, Financial Institutions: Understanding and
Managing Financial Services, Richard D. Irwin: Chicago. SEBI Act and SEBI
Regulations.

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