Report of the Committee for Reforming the Regulatory Environment ...

unsuspecting public often leads to such a frameworkwhich is a part of the problem and not a part of thesolution. The Indian experience clearly has been thatthere are more laws, rules and regulations than thecountry needs and the problem often lies in inadequateimplementation, compounded by interpretationalconfusion. The experience of the last few decades hasbeen that when confronted with a problem, theresponse of the Government or the regulator has beento either create a new institution or to write newregulations. Often these are knee jerk responses tosome isolated occurrence that could have been solvedwithin the existing framework of laws and regulations.4.7 The facts of the Satyam Computers case illustratethe point. When the founder Chairman of the Companydisclosed to the regulators and to the exchanges thatthe numbers that were put out in the public domain,quarter after quarter, did not reflect the correct state ofaffairs of the Company, the response of otherwisenormally well-informed persons was that new44