The financial markets are the new commanding heights
of the Indian economy. The Indian financial markets
have attained a remarkably high degree of growth in
the last decade and are poised for a quantum leap
forward. Do the Indian markets have the vigor and
infrastructure to compete with the best financial
markets across the globe? Discuss these and other
issues concerning the future of Indian financial markets
at Pegasus, the research paper presentation contest
at Poseidon.
Topics
Financial Instruments and Innovations for the next
decade
India's financial markets have undergone rapid changes
since the country embarked on a program of economic
reforms in 1991. They have embraced technology, seen
a substantial increase in the variety and volume of
capital market transactions, and witnessed the emergence
of securities and new instruments, particularly derivatives.
While on one hand these changes have brought about
several new opportunities, on the other, they have
entailed new challenges such as integration of domestic
and international markets, interest rate risk, foreign
exchange risk, liquidity risk and volatility in capital
flows, to name a few. As India moves towards establishing
its dominance in the global financial market, what
reforms, new instruments and financial innovations
are required to manage these emerging realities?
Challenges towards developing efficient Credit
Bureaus in India
The Indian market is witnessing a growth of 30-40
per cent in retail banking sector annually. The growth,
though impressive, has been somewhat hampered by the
absence of an effective credit bureau in the country.
Although therollout of Credit Information Bureau India
Limited (CIBIL) is a step in the right direction,
it faces several challenges in the current Indian
environment. What are the problems that need to be
overcome before credit bureaus can become effective
in an emerging economy like India? What role can the
banks play? How will Credit Bureaus benefit customers
and banks? What legal measures need to be taken to
protect the interests of the customers?
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