Measures such as robust contract enforcement and disclosure discipline go a long way in strengthening the financial systems. Every legislation has a time dimension and its relevance has to be seen vis-à-vis this dimension. With the changing environment, practices and processes change, necessitating a review of extant legislations.
This holds all the more true for an area like financial system where changes are rapid and frequent. The dynamic nature of legislation was well articulated when Aristotle said “Even when laws have been written down, they ought not always to remain unaltered”. India is said to be one the most over-legislated countries.