RBI panel on financial markets meets

The TAC reviewed the recent developments in money, government securities and foreign exchange markets and discussed various issues relating to the financial benchmarks, disclosure and reporting requirements for commercial papers (CP) and relaxations in the documentation-related requirements for hedging in the forex market.

The 40th meeting of the Technical Advisory Committee (TAC) on Financial Markets was held today at Reserve Bank of India, Central Office, Mumbai, under the chairmanship of Shri Harun R. Khan, Deputy Governor, Reserve Bank of India. Senior officials from RBI, representatives from the Ministry of Finance, the Securities Exchange Board of India (SEBI), the Insurance Regulatory & Development Authority (IRDA), in addition to academia, industry bodies, banks, exchanges, clearing corporation, Fixed Income Money Market and Derivatives Association of India (FIMMDA) and other market entities participated in the meeting.

The TAC reviewed the recent developments in money, government securities and foreign exchange markets and discussed various issues relating to the financial benchmarks, disclosure and reporting requirements for commercial papers (CP) and relaxations in the documentation-related requirements for hedging in the forex market. The TAC also reviewed the recommendations of the Working Group on Interest Rate Options (Chairperson: Prof P.G. Apte) and Implementation Group on encouraging retail participation in government securities (Chairperson: Smt. Rekha Warriar). The TAC approved the constitution of a Standing Group under the TAC to suggest measures for compliance with global standards in the OTC derivative market. The Committee also deliberated on measures for development of corporate bond and the term money market.

Background

The Reserve Bank had reconstituted the Technical Advisory Committee on Money, Foreign Exchange and Government Securities Markets in April, 2015. The terms of reference of the Committee are:

To review and recommend measures for deepening and widening the money, foreign exchange and government securities markets including those relating to participants, products, institutional and infrastructural arrangements, etc.;

To suggest measures for development of market and promoting liquidity in money market instruments, foreign exchange market and government securities;

To examine and advise on the evolving and desirable linkages among the money, foreign exchange and government securities and capital markets;

To review the infrastructure, legal and institutional arrangements for trading, transfer and settlement in the money , foreign exchange and government securities markets in the context of the emerging payments system including CCIL;

To prepare and consider papers on topics relating to product/market development and advise on the policies and practices for the same;

To review the qualitative and quantitative aspects of risk management, accounting disclosure, settlement, legal framework etc. in the money, foreign exchange and government securities markets and render advise; and

To examine any relevant issue having a bearing on these markets referred to it, by RBI.