There is a grave danger if there’s overregulation—it results in a strangulating bureaucracy. But there are pitfalls of under regulation— it makes those who should be more on their toes to relax and become complacent. In the first, it’s the businesses that suffer; in the latter, it’s the retail investors and poor customers who bear the burden. This is why as India tries to ease the way to do business, she should ensure that the watchdogs are on guard, and don’t abdicate their responsibilities. A classic case where the regulators seem to have gone to sleep is the rich-to-richer story of Avenue Supermarts and its promoter, Radhakishan Damani. Although, the company is performing well, and its stock is flying, there are danger signals that should interest the regulators and watchdogs. At the moment, they seem to be sleeping, and seem unaware of what’s happening. Alam Srinivas reports