Financial Regulation and the Courts : A Comparative Study of Judicial Approach in India, the United States of America, and the United Kingdom

Financial regulation is a much debated topic for some time. The history of financial instruments started at a time when people started giving value to physical objects over and above its inherent utility. Right from the very beginning of their existence, it has been acknowledged that financial instruments are risky. There have been several legislative and regulatory attempts to regulate financial instruments. But every time the human ingenuity ensured that financial instruments remain afloat. Financial derivatives are a sub species of financial instruments No internationally accepted principles for regulation of financial instruments, especially financial derivatives exist. This article makes a comparative study of the approach taken by judiciary regarding the regulation of financial instruments in general and financial derivatives in particular. The US, UK and India are taken as sample countries, but major context is the Indian regulatory scenario