Modelling Education Reforms on the Financial Sector
Pratap Bhanu Mehta's article in the Indian Express on the devil being in the detail of educational reforms is very interesting. It makes us look around for successful models and one that strikes the eye is obviously the Stock Exchange mechanism -- that is perhaps one of the most successful model that has emerged from Indian reform process. To see if this model can be used as a reference, let us see some of the regulatory issues that a "company" needs to address before it can transact business and earn money. At its minimum, a company must adhere to the conditions of the Companies Act and register itself with the Registrar of Companies. We note that the RoC does not really approve or reject the application on the basis of the quality of the companies products or that of its promoters. All that the RoC ensures is that the company meets certain basic disclosure norms in terms of ownership and financial issues. The focus is on accurate disclosure -- or transparency -...