Recent trends of financial system of india
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Indian financial reforms started with the Narasimham Committee recommendations, the author traces. “The Committee proposed a wide range of proposals which laid the strong foundation for the strength and the resilience of the financial system today. Reforms were focused on the banking sector, financial institutions (FIs), capital market, and money market.”
As a result of the Committee’s recommendations, SEBI (Securities and Exchange Board of India) was made a statutory body, and the Capital Issues Control Act was repealed to pave the way for an era of free pricing, he reminisces. “SEBI issued guidelines for each of the market intermediaries and made the market micro-structures ready for a more transparent and orderly growth of the market. Global depository receipts (GDRs) were launched in 1992, and investment norms for NRIs (non-resident Indians) and OCBs (overseas corporate bodies) were also prescribed. FIIs (foreign institutional investors) were permitted to invest in the Indian capital market.”
Financial crisis, the second trend listed in the book, is a topic that is fresh in the minds of most of us. Through a timeline, therefore, Shanmugham plots the happenings of recent times, beginning with the surfacing of the US sub-prime crisis in mid 2007, followed by the collapse of Bear Stearns, and the avalanche of failures thereafter.
The spill-over to other economies, or the contagion effect, manifested as reverse capital flows and non-availability of credit, leading to financial turbulence, he rues. “The crisis has affected the real economy. Growth prospects of emerging economies have been affected by the financial crisis
As a result of the Committee’s recommendations, SEBI (Securities and Exchange Board of India) was made a statutory body, and the Capital Issues Control Act was repealed to pave the way for an era of free pricing, he reminisces. “SEBI issued guidelines for each of the market intermediaries and made the market micro-structures ready for a more transparent and orderly growth of the market. Global depository receipts (GDRs) were launched in 1992, and investment norms for NRIs (non-resident Indians) and OCBs (overseas corporate bodies) were also prescribed. FIIs (foreign institutional investors) were permitted to invest in the Indian capital market.”
Financial crisis, the second trend listed in the book, is a topic that is fresh in the minds of most of us. Through a timeline, therefore, Shanmugham plots the happenings of recent times, beginning with the surfacing of the US sub-prime crisis in mid 2007, followed by the collapse of Bear Stearns, and the avalanche of failures thereafter.
The spill-over to other economies, or the contagion effect, manifested as reverse capital flows and non-availability of credit, leading to financial turbulence, he rues. “The crisis has affected the real economy. Growth prospects of emerging economies have been affected by the financial crisis
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