It is an attempt to highlight the significance of regulation in the context of the Global Financial Crisis. The crisis has exposed the weakness of the unregulated financial system and its vulnerability to the economic fluctuations. The global recession has made it clear that prudential regulation with conventional wisdom should be the central plank of financial stability. This paper analyses the factors which led to Global Meltdown with thrust on regulatory aspects. (How regulations are weak, absence of regulations resulted in over accumulation, circular inter dependence and fake transactions, etc.). Against this background, there is a renewed interest in regulations. There is a keen discussion on nature and orientation of regulation, extent of regulation, instruments of regulation and efficiency of regulatory authority.
