Standing Council on international competitiveness of the Indian Financial System

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In June, 2013 the Department of Economic Affairs, Ministry of Finance, constituted a Standing Council of Experts to assess the international competitiveness of the Indian financial sector. The objective of the Standing Council is:

1. To analyse the performance and competitiveness of the Indian financial markets in fully meeting client needs as per global standards;

2. To examine the various pecuniary and non-pecuniary costs in the Indian financial markets and to compare them with a competitor market;

3. To suggest reform measures aimed at enhancing development, governance and transparency in these markets while ensuring that risks are contained and investor interests are protected;

4. To deliberate and advise on any other matter related to the above objectives.

The Standing Council has tasked the Finance Research Group at IGIDR with the responsibility of providing technical research-based inputs for its work. This report is the first volume of work done towards fulfilling the Standing Council's objectives. It assesses the international competitiveness of the three derivatives markets in India: currency derivatives, equity derivatives and commodity derivatives.

Volume 1: The international competitiveness of currency, equity and commodity derivatives

Department of Economic Affairs, Ministry of Finance September 2015

Quarterly Update

Quarterly updates seek to track the competitiveness of the market segments reviewed by the Standing Council on an ongoing basis. Each quarterly update has three parts: (1) an analysis of how the Indian markets are faring with respect to their global competitor markets; (2) an update on the implementation status of the policy recommendations made to the Standing Council; and (3) an analysis on a subject relevant to the Standing Council work areas.

• January - March, 2016 update
  Analysis: Impact assessment of increase in lot size for equity derivatives.

• October - December, 2015 update
  Analysis: Securities lending and borrowing market in India.

• April - June, 2015 update
  Analysis: Update on recent SEBI discussion papers for the public equity issuance market.

• January - March, 2015 update
  Analysis: (1) Budget 2015: impact on factors of international competitiveness; (2) Merger of SEBI with FMC: possibilities and challenges.

Commentary

• Budget goodies for GIFT, markets likely by Dilasha Seth, Arup Roychoudhury, Business Standard, 11^th January 2016
• To internationalize the rupee or not? by Rajeswari Sengupta, Bhargavi Zaveri, Mint, 02^nd December 2015.
• Will India ever have an IFC or be internationally competitive? Mint, 05^th October 2015.
• Perils of excessive speculation. Mint, 01^st October 2015.


• Is India a hospitable environment for India-related finance by Anjali Sharma, Kanwalpreet Singh, Rajat Tayal, Rohini Grover, Susan Thomas, Ajay Shah's Blog, 28^th September 2015.
• Govt panel suggests reforms in domestic markets. Mint, 08^th September 2015.
• Panel makes a case for globally competitive financial sector. The Economic Times, 08^th September 2015.
• Government panel submits financial sector reforms report. dna, 11^th September 2015.
• Panel calls for internationalisation of rupee, on lines of Chinese renminbi. Indian Express, 08^th September 2015.