Relevance of the Volcker and Vickers rules to Indian scenario

Abstract

As part of our study, we have aimed to study the Volcker and Vickers rules that have been proposed by various governments abroad. The basic premise for the implementation of these rules is that they serve the best interests of investors and safeguard their investments from non-prudent financial activities. These rules also aim to prevent a contagion effect and prevent situations where the taxpayer’s money is used for bailouts. India is a thriving economy and is embracing liberalization of its financial systems at an unprecedented pace. In this accelerated growth phase, it is very easy to throw caution to the winds and not be bothered about regulations so much. But it is imperative that India learn from the lessons of the West and try to get its own version of Volcker and Vickers rules to safeguard its investor’s money. This is what the final objective of our paper is where we try to study the applicability of Volcker and Vickers rule in Indian context