An economy aspiring for faster development, does have financing needs. There is domestic savings augmented by the foreign savings to fulfill the financing needs. It is for the market to perform an efficient role in allocation. Development of markets is not driven by altruism; it requires alignment of incentives of all stakeholders – the investor, the investee as well as the regulator.
The incentives of the first two are well appreciated, but the regulator is often seen as a spoilsport in the process of development of markets. It must be appreciated that the regulator’s objective is financial stability, avoidance of market failures and consumer protection, and the financial crisis has underscored the importance of these objectives.