Budget 2021: 'Fintechs need graded, calibrated regulatory framework'

By Ujjwal Jain,

Regulatory changes implemented in the last two years — starting with the imposition of LTCG in 2018, abrupt changes from providing Intraday leverage by stockbrokers and later providing relief, etc-have confused brokerages, fund managers, investors, and traders alike. Despite challenges and the pandemic, capital markets saw rapid growth last year. The industry now needs a holistic, unambiguous, and innovation-friendly regulatory regime for the emergence of a BigTech in Financial Services from India. Because multiple entities such as the RBI, SEBI, IRDAI and others govern the FinTech space, there can be an overlap of regulation and contrasting views. A single entity or window for regulatory support to tech-intensive fintechs cutting across verticals can avoid confusion and bring much-needed clarity.

Fintechs are also in need of a coordinated, calibrated, and graded regulatory framework to achieve more UPI-like breakthroughs. Besides such regulatory support, a dynamic exit ecosystem, easier access to listing on exchanges, and tax exemptions for investments can bring more capital into fintech and drive innovation in new business lines and products and diversification into new geographies.

(The author is the CEO & Founder of WealthDesk)