When the head of the BSE recently told a television interviewer that “conversations between regulator and regulated are confidential,” it was not a deflection. Nor was it evasive when the Reserve Bank of India governor responded to a question about events at a bank with a similar refrain. On this front, at least, both regulator and regulated are aligned.The default position on violations or regulatory trespasses is silence. Even when enforcement orders are published, they rarely paint a picture of how problems emerged or what patterns of failure are taking shape. The argument is familiar: confidentiality preserves stability, and the public should trust that the watchdogs are watching.
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