Lack of a unified regulatorIndian Financial Code proposed moving away from sector-wise regulation to a more unified one, with RBI and a unified regulator to reduce regulatory arbitrageLack of a unified redressal agencyIFC proposed a Financial Redressal Agency to resolve consumer complaints across turfs. But the needle hasn’t moved at all on this investor-friendly agencyBanks continue to mis-sell and cheatBank lockers and loans are still linked to opening FDs or buying insurance. Mis-selling of insurance and churning mutual funds continues. High first-year costs and low surrender values in early years make these policies a money-losing trapDelayed and stuck real estate projectsProject delays, runaway promoters, siphoned-off money and fraud defined real estate in this decade even as 560,000 units are still stuck and 24.7 million are unoccupiedEPFO’s equity investments opaqueFour years after EPFO started investing in equity, investors have little information. Worse, investments are not yet unitized, making the system open to riskScams under the nose of regulatorsSatyam, NSEL, Karvy are all names associated with scams in which investors lost money.

Source: Mint December 30, 2019 17:15 UTC