The objectives of financial supervision are maintaining public confidence in the financial system;
Promoting public understanding of the financial system, including promoting awareness of the benefits and risks associated with different kinds of investment or other financial dealing;
Securing the appropriate degree of protection for consumers, having regard to the differing degrees of risk involved in different kinds of investment or other transaction, the differing degrees of experience and expertise which different consumers may have in relation to different kinds of regulated activity and the general principle that consumers should take responsibility for their decisions; and
Reducing the extent to which it is possible for a business carried on by a regulated person to be used for a purpose connected with financial crime, with particular regard to the desirability of regulated persons being aware of the risk of their businesses being used in connection with the commission of financial crime and taking adequate measures to prevent, facilitate the detection, and monitor the incidence of financial crime.
In addition, in discharging its general functions the financial regulators must have regard to: the need to use its resources in the most efficient and economic way; the responsibilities of those who manage the affairs of authorized persons; the principle that a burden or restriction that is placed on a person, or on the carrying on of a regulated activity, should be proportionate to the benefit the provision is generally intended to confer; the desirability of facilitating innovation in connection with regulated activities; the international character of financial services and markets and the desirability of maintaining the competitive position in India; and the principle that competition between authorized persons should not be impeded or distorted unnecessarily.