India’s financial market regulatory framework got the top-most ratings from the global bodies of banking and capital market regulators, with RBI and Sebi being rated better than their peers in China and the US. Proud moment!
As part of the latest global ‘assessment study’ of the regulatory framework for financial markets across the world, only six countries, including India, have got the highest score of ‘4’ for all eight parameters on a scale of one to four. The other fives countries include Australia, Brazil, Hong Kong, Japan and Singapore.
What came out as outstanding was that capital market watchdog Sebi and the RBI have put in place all necessary regulations for the PFMIs (Principles for Financial Market Infrastructure), while they also “have a legal capacity to implement the responsibilities” outlined under these global standards.
These PFMIs work as global standards for the financial sector entities across the world and have been finalised by the International Organisation of Securities Commissions (IOSCO) and the Bank for International Settlements (BIS).
The assessment took into account regulations for central counter-parties, trade repositories, payment systems, central securities depositories and securities settlement systems. India has scored top ratings on all these counts. Whereas the US has scored the top-most rating of 4 on five out of total eight parameters, while China has got three top-most scores.
This rating will certainly boost the investor confidence in the financial markets and will attract global funding as well!
Source: Financial Express