RBI sets up market advisory panel to address liquidity, resilience concerns
MUMBAI: The Reserve Bank of India (RBI) has set up a consultative panel of senior bankers, market infrastructure executives and industry representatives to examine issues affecting the efficiency, liquidity and resilience of the country’s financial markets, as the central bank seeks closer engagement with market participants amid rapidly evolving market structures.
The Technical Consultative Committee for Financial Markets (TCCFM) will be chaired by RBI deputy governor Rohit Jain, who oversees the Financial Markets Regulation Department (FMRD). Its external members include former Securities and Exchange Board of India (Sebi) whole-time member Ananth Narayan, the central bank said in a press release on Wednesday.
The panel also includes Shamsher Singh, chairman of the Fixed Income Money Market and Derivatives Association of India (Fimmda) and deputy managing director of State Bank of India; Neeraj Gambhir, executive director at Axis Bank; and Shailendra Jhingan, head of treasury and economic research at ICICI Bank.
Other members are Aditya Bagree, managing director and head of markets at Citibank India; Nand Kishore, managing director of Clearing Corp. of India Ltd; and Ridham Desai, managing director at Morgan Stanley India.
Broadening market engagement
The committee will provide a structured platform for the RBI to consult market participants on policy and operational matters spanning money markets, government securities, foreign exchange markets, their respective derivatives segments and related infrastructure.
Its terms of reference include examining impediments to the functioning, efficiency, liquidity and resilience of these markets, and identifying measures to deepen and broaden them.
The panel will also deliberate on issues concerning trading, clearing, settlement and reporting, as well as the regulatory and operational frameworks governing market infrastructure. It will assess emerging policy and operational challenges, including the implementation of RBI measures and any unintended market frictions.
The committee will further consider domestic and international developments, financial innovations and emerging risks with implications for Indian financial markets. The RBI may also refer specific market issues and macroeconomic considerations to the panel.
The central bank said the committee will meet at least once every quarter. Its constitution follows the announcement made during the RBI’s monetary policy committee meeting last month.
