The Reserve Bank of India has created a quarterly forum with outside market participants to examine liquidity, resilience and operating rules across financial markets, including government securities and foreign exchange. The Technical Consultative Committee for Financial Markets will meet at least once each quarter and cover money markets and related derivatives.
The panel’s agenda includes market efficiency, liquidity and resilience, as well as ways to widen participation and deepen markets. Members will review trading, clearing, settlement, reporting and other market infrastructure, alongside the regulatory and operational frameworks for those activities. They will also consider implementation of RBI measures, unintended market frictions, domestic and international developments, financial innovation and emerging risks.
The committee gives market participants a recurring channel to discuss the central bank’s policy and operational approach. The RBI may ask members to address a particular market concern or a broader macroeconomic issue. The chair will be the deputy governor overseeing the RBI’s Financial Markets Regulation Department, but the Nov. 4 announcement did not name the officeholder.
The seven external members are Ananth Narayan, a former Whole Time Member of the Securities and Exchange Board of India (SEBI) and professor of practice at IIT Bombay; and Shamsher Singh, chairman of the Fixed Income Money Market and Derivatives Association of India and deputy managing director of State Bank of India. The other members are Neeraj Gambhir, executive director at Axis Bank; Shailendra Jhingan, head of Treasury and Economic Research at ICICI Bank; Aditya Bagree, managing director and head (Markets) at Citibank India; Nand Kishore, managing director of the Clearing Corporation of India Limited; and Ridham Desai, managing director of Morgan Stanley India.
The RBI outlined plans for the committee on Oct. 7, citing rapidly evolving financial markets and infrastructure, and said its composition and remit would follow separately. The Nov. 4 announcement provided those details but gave no date for the first meeting.
