RBI forms committee to address emerging financial market challenges The Reserve Bank of India (RBI) has set up a new Technical Consultative Committee for Financial Markets (TCCFM) to strengthen its engagement with market participants and industry stakeholders. The committee will meet at least once every quarter to discuss these issues and provide inputs to the central bank. The committee will provide a platform for the RBI to discuss policy-related issues and operational challenges with stakeholders in key financial markets, including money markets, government securities and foreign exchange. It will also cover related derivative markets and financial market infrastructure. “The Committee will serve as a forum for structured engagement with market participants and stakeholders by the Reserve Bank on policy and operational matters related to money, government securities and foreign exchange markets as well as the respective derivative markets and infrastructure,” RBI said in a press release. As per the RBI circular, the committee will examine how money, government securities and foreign exchange markets operate, including their efficiency, liquidity and resilience. It will also identify measures to increase participation, liquidity and the range of products available in these markets. The committee will examine issues related to the functioning, efficiency, liquidity and stability of India's money, government securities and foreign exchange markets, along with their associated derivatives markets. It will also identify measures to deepen these markets, improve liquidity and encourage broader participation. Further, it will review issues concerning trading, clearing, settlement and reporting systems, as well as the regulatory and operational frameworks governing these activities. It will also discuss emerging policy and operational challenges faced by market participants, including difficulties in implementing RBI measures and any unintended hurdles that may arise from regulatory changes. Additionally, the committee will assess domestic and international developments, financial innovations and emerging risks that could have an impact on Indian financial markets. It may also take up specific market-related issues or broader macroeconomic concerns referred to it by the RBI. The committee will be chaired by the RBI Deputy Governor in charge of the Financial Markets Regulation Department (FMRD). It will comprise seven external members representing banking, financial markets, investment management and financial market infrastructure. The members include Ananth Narayan, former Whole-Time Member of the Securities and Exchange Board of India (SEBI) and Professor of Practice at IIT Bombay; Shamsher Singh, Chairman of the Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Deputy Managing Director of State Bank of India (SBI); and Neeraj Gambhir, Executive Director at Axis Bank. Other members include Shailendra Jhingan, Head of Treasury and Economic Research at ICICI Bank; Aditya Bagree, Managing Director and Head of Markets at Citibank India; Nand Kishore, Managing Director of Clearing Corporation of India Limited; and Ridham Desai, Managing Director at Morgan Stanley India. Get Latest News Live on Times Now along with Breaking News and Top Headlines from Business, Economy and around the World. Vikas Kumar is Deputy Editor (Business) at Times Now driving coverage across policy, economy and markets. He possesses nearly a decade of experience i... View More