As you pick up this issue, you will be preparing for the year-end festivities. Welcoming the new year is reason enough to cheer. But as a consumer of financial products, you have a greater cause for celebration. For, as you step into 2011, the focus has shifted squarely to the consumer. When the government and regulators struggled to ensure that financial institutions did not collapse under the weight of the global financial crisis, it wasn't so much about the consumer.
But when the Securities and Exchange Board of India sparked off a turf war with the Insurance Regulatory and Development Authority, the real winner was the consumer. Subsequently, the Irda came up with wide-ranging changes, all of which were directed at consumer protection.
Towards the end of the year, the RBI came out with strong regulatory measures, forcing reluctant lenders to withdraw teaser home loan rates. These were a part of the governmentdriven initiative to boost housing demand at the height of the global crisis. It dawned later that a competitive burst among lenders to offer such rates could be harmful for borrowers and that the system could be stuck with defaults.
These were among the many changes that swept through the financial landscape. In this issue, we shall walk you through what you, as an investor, can expect during 2011 in light of these changes. On the whole, it appears the year could be a period of consolidation of gains. Though the economy has shown a healthy growth, concerns about high asset prices, possible spillover of volatility in the capital market and high inflation remain. In an increasingly intertwined world, where recovery remains uncertain in many parts, it doesn't take much to negate the gains, as seen during the Irish debt crisis.
So, as you remain invested, stay vigilant too. We will supplement your efforts by keeping you posted. The MONEY TODAY team wishes you a happy and prosperous New Year.
SARBAJEET K. SEN,
Executive Editor
