India’s equity markets are a success story in the country’s 70th year of independence, and there are two prominent state institutions responsible for this, the Securities and Exchange Board of India and the National Stock Exchange. SEBI has played an extraordinary role in bringing in market efficiency, but as the equity market regulator, it must have the corporate surveillance function as well
In the wake of trade-based globalisation followed by financial globalisation, a large volume of capital began moving from developing to advanced countries. This has resulted in relatively poor developing countries effectively becoming net creditors to the rest of the world. Reversing this massive outflow of capital requires governments to strengthen governance in all its dimensions and have closer international collaboration to tighten the regulatory oversight of tax havens for greater transparency
The extent of the rupee’s depreciation in 2013 demonstrates the Indian market’s dependence on overseas portfolio investments. Can developing domestic institutional bulwarks allay anxieties during similar crises? Is tapping into India’s deep pool of domestic savings, by modifying archaic regulations, an option?
Tarun Kataria, CEO, Religare Capital Markets India foresaw the decline of the rupee to the 60 mark against the U.S. dollar several months ago. He speaks to Gateway House’s Manjeet Kripalani about the impact the rupee crisis will have on the economy and consumers and how the government can reverse the situation