Consolidated accounting and supervisory techniques would have to evolve and appropriate firewalls need to be built to address the risks underlying such large organisations and banking conglomerates. Supervision/regulation of financial conglomerates The financial landscape is increasingly witnessing entry of some of the bigger banks into other financial segments like merchant banking, insurance etc., which has made them financial conglomerates.
Emergence of several new players with diversified presence across major segments and possibility of some of the non-banking institutions in the financial sector acquiring large enough proportions to have systemic impact make it imperative for supervision to be spread across various segments of the financial sector. In this direction, an inter-regulatory Working Group was constituted with members from RBI, SEBI and IRDA.