Archive for March 6th, 2017

Regulatory turf wars: Sebi vs RBI over stock trading of HDFC Bank..

March 6, 2017

There used to be this famous dialogue in earlier Hindi movies where one of the protagonist challenged the other saying : “Ye ilaaka mera hai“(this turf is mine!). Or the hero telling the villain “apne ilaake mein sab sher hote hain” (everyone is a lion in his own turf).

We are seeing similar games being played here. Given how interconnected financial space is, one can see one regulator operating in the turf of the other. SEBI looks at stock exchanges and RBI looks at FDI in banks. Recently, RBI intervened to check foreign ownership breach in HDFC Bank.

This has led to SEBI saying “ye ilaaka mera hai” and objected to the intervention:

The Securities and Exchange Board of India has expressed displeasure over the Reserve Bank of India’s intervention in the trading of HDFC Bank shares after the overseas holding was breached on February 17. Sebi is said to have lodged a protest in a strongly worded letter to RBI.

“Market sanctity is important to Sebi. Even Sebi doesn’t intervene during market hours. RBI can’t do anything like this without consulting with Sebi,” said a regulatory official aware of the letter. ” This is backseat driving.” Sebi has said that to ensure such a situation doesn’t recur a solution needs to be worked out by both regulators.

This is nothing new though. Infact earlier SEBI was on the other side when it intervened on the ULIP case. IRDA then said “ye ilaka mera hai”..

How apprenticeship institutions helped in rise of Europe…

March 6, 2017

David de la Croix, Matthias Doepke, Joel Mokyr have a nice post.This quest to explain rise of Europe remains one of the holy grails of political economy.

They say apprentice system played an important role:

We look for big ideas but the smaller ones matter equally.

Time for customers to teach India’s out of control banks..

March 6, 2017

One got a forwarded message this weekend from a friend saying high time Indian customers treat their banks a lesson. Banks depend so much on customer’s money and it is really shocking to see the sheer arrogance of Indian private banks in recent days. Instead of treating the customer with some respect on whose deposits and credit the banking business is based, people are being slapped all kinds of charges recently. The private banks are actually behaving more like public sector banks by agreeing to anything and everything from the government.

Dhirendra Kumar of Value Research has a piece saying it is time for pulling up these banks.

(more…)

These 5 architectural designs influence every Parliament in the world

March 6, 2017

There is a very interesting book by Max Cohen de Lara and David Mulder van der Veg. In the book they have studied architectural designs of all 193 countries members of United Nations.

They say most of the designs can be of five types: opposing benches, semi-circle, circle, horseshoe and hybrid. Each of these designs obviously also tells you about state of governance as well:

Every one of the United Nations’ 193 member states has a legislature — and each has a plenary hall for its meetings. How does the architecture of these assembly spaces structure the way that legislature makes decisions?

To answer that question, we spent six years collecting the architectural layout for each one of those buildings. We’ve published our findings in our book “Parliament.” By comparing these plans in detail, we wanted to understand how a political culture is both shaped by and expressed through architecture. Organized as a lexicon, from Afghanistan to Zimbabwe, the book for the first time allows a comparison of all national parliaments in the world.

We found a clear pattern. Although each of the 193 United Nations member states has a parliament of some kind — albeit with varying degrees of democracy — their plenary chambers have a very limited number of shapes. Most surprisingly, these buildings have hardly changed since the 19th century.

Read the full thing, Superb stuff..