Financial Markets and the Economy - Intersections

  (The enclosed article appeared in Business Standard on 28th January 2026 - link  below:   https://www.business-standard.com/opinion/columns/budget-2026-tax-transition-india-needs-to-shift-to-residence-based-regime-126012701501_1.html  ) For years, our government has propelled the economy with its focus on infrastructure investments. However, for sustainable public debt and sustained capital formation, the investment baton must pass on to the private sector.  This requires a conducive, competitive, and stable tax regime that treats capital as a partner, not a target. The quest for expertise When a global major invests in a semiconductor fab, an AI data centre or electronics assembly under the Production Linked Incentive (PLI) scheme, it brings patented processes, integration into global supply chains, research and development, and other specialized skills that can drive future growth. Fostering investment, therefore, remains a top national priority. Global inve...

( The enclosed article appeared in Business Standard on 20th January 2026   https://www.business-standard.com/opinion/columns/regulatory-dilemma-scams-vs-suffocation-in-india-s-capital-markets-126011901326_1.html  ) As India’s capital markets deepen, Sebi, industry and academia must work together to strike the right regulatory balance. Every regulator faces an inherent tension: Act too softly and risk scams; act too harshly and suffocate legitimate business. In navigating this tension, a securities regulator must achieve three distinct goals. The first goal is  investor protection . Large-scale frauds and market manipulation can severely damage trust in the markets. When regulators fail to prevent or respond decisively to such misconduct, they commit a  Type I error . These failures make headlines, cause investors to pull back, erode confidence, and ultimately impair capital formation. The second goal is ensuring regulation does not penalise honest enterprise. Rules ...