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Coordinate international policies to help markets, says Jalan

Jalan was delivering the inaugural address at the three-day meeting of the Asia Pacific Regional Committee of the International Organisation of Securities Commission and the APRC enforcement directors, which was organised by the Securities and Exchange Board of India in Bombay today.

In a larger perspective, the governor said that there was need for greater coordination among the central banks and security regulation bodies globally to develop sound and internationally competitive standards and promote the markets. Greater coordination will not only foster the health of the markets, but also bridge the cross-national borders.

Highlighting the economic reforms and liberalisation process, Jalan said the Reserve Bank of India and SEBI had played a lead role in coordinating with the primary and secondary markets in the country. Since the last few years, the market has expanded and been modernised.

He said about five years ago, only US dollar 62 billion was raised annually from the capital market in the country, whereas now it is about US dollar 200 per year which is bound to increase more.

The trading volumes has also increased manifolds and the market capitalisation now stands at US dollar 180 billion.

The Indian market has over the years automated and 98 per cent trading is now on computers. Trading on 19 stock exchanges out of the 22 exchanges are on screen-based environment now. With the increasing market capitalisation, the regulatory authorities are on an alert, he said.

Jalan said that the regulatory authority and the apex bank were working in close coordination with the government to start more depositories and bring in a paperless trade in cultures across the country. This will also increase transparency, he said.

Further elaborating on the Indian markets, the governor said that mutual fund's play a major role and are now the key participants in the market. The foreign institutional investors have also reposed faith in the Indian markets because of the convertibility.

Jalan said globally there is need for the markets to align with new technologies and develop infrastructure and the legal network. India, on a continuous basis, is actively pursuing with such development programmes, he said.