A Regulation on Regulations – Rule of law checks by the Reserve Bank of India
– Aditya Iyer, Manager (Legal) | (finserv@vinodkothari.com)
Background
In Rajeev Suri v. Delhi Development Authority, the Supreme Court of India[1] noted that the ‘Rule of Law’ (RoL) posits four universal tenets, of which two are: (i) The laws must be just, clear, publicized, and stable; (ii) Open Government – the process by which laws are enacted, administered, and enforced are accessible, fair, and efficient. Further, it was noted that an integral part of a participatory democracy is public participation regarding decision-making (to a reasonable extent).
We have written elsewhere about how a strong RoL framework may play a role in improving investor confidence and encouraging investments in a given jurisdiction. Predictability and transparency are verily the lifeblood of the RoL.
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