New Delhi, Jan. 30 -- Two former chairmen of the Securities and Exchange Board of India (Sebi) have, over the last four months, called for studying the impact of regulation, so that it can be factored into decision-making. M. Damodaran, speaking at the recent Mint BFSI summit, argued that Sebi must convey the rationale of its decisions effectively because regulation must protect investor interests in appearance as well as substance.

ed, G.N. Bajpai had suggested four yardsticks for assessing Sebi's decisions: Clarity of rationale, openness to public scrutiny, the conduct of an independent review, and an economic cost-benefit analysis. These words of advice are welcome. Independent assessments of Sebi's calls must routinely be carried out...