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`Equity market needs further development for financial reforms'

Our Bureau

New Delhi , Jan. 14

To effect next generation of financial market reforms, the country will need to take equity market development to a higher level as well as develop and deepen corporate bond markets, according to a joint study by FICCI, World Bank and CRISIL.

The study points out that for next generation financial reforms, there will be need to focus on the following: developing markets for derivatives and securitisation; strengthening the institutional investor base; improving market regulation; and strengthening risk management.

In this context, while acknowledging India's readiness to go in for capital account convertibility, the study cautions that certain conditions will have to be fulfilled before the capital account is fully liberalised.

The development and deepening of the corporate bond market will require developing the government bond market, as it is important for the development of the corporate bond market, says the study.

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