Indian Regulator Advised to Develop Capital Markets
Date: 27 January 2012
Source: SEBI
The Securities and Exchange Board of India (SEBI) has been advised by its International Advisory Board (IAB) to develop its capital markets, while maintaining the “consistently high regulatory standards” needed to manage the technological advancement necessary for such development. The advice serves as a reminder that many emerging markets need to develop capital markets in order to achieve their growth objectives, and that bank dominated financial systems may not be appropriate for all countries. Indeed, disintermediation can be beneficial, provided that it is well regulated and supervised. It will be important for the global regulatory agenda to recognise the importance of maintaining stability in the capital markets of large emerging economies in the near future.