India impressively sailed through the last global financial crisis triggered by the collapse of Lehman Brothers in the USA. At above 20000 points the BSE sensex along with around 8 percent of consistent GDP growth may well be pointers to the growing and robust Indian economy. However, this sense of confidence and achievement is not sans anxieties and apprehensions which still run high among the top echelons of the government planners, financial regulators and the India Inc regarding the future of the financial markets.

This was evident at an  Associated Chambers of Commerce and Industry of India (ASSOCHAM)-organised conclave at New Delhi on Wednesday. Speaking on the occasion, Sudha Pillai, member secretary, planning commission, delved on the overturning of the closed Indian economy by an open and liberal market in 1990. Underlining the amendments in the Monopolies and Restrictive Trade Practices Act (MRTP) – which has now given way to the Competition Act- and the Company Act, Pillai suggested on reasonable regulation of the capital market to ensure a smooth roadmap for its upkeep.

Her suggestion was interpreted both generally as well in the backdrop of apprehensions raised by MCX Stock Exchange chairman, Ashok Jha on the conduct of the capital market regulators. Jha, speaking before Pillai at the forum, said that the market regulator -in an obvious reference to Securities and Exchange Board of India (SEBI) - ought to give a fair chance to the new entities. SEBI had recently rejected MCX stock exchange’ s application for equity trading citing non-compliance with MIMPS (Manner of Increasing and Maintaining Public Shareholding Regulations) non conformity to the Securities Contract Regulation Act (SCRA).

Strengthening the institutions of micro finance, reforms in the insurance sector, micro-pension schemes for the unorganized sector, and enhanced financial inclusion for the retail investors were focused upon by participants at the conclave which also included R. Gopalan, Secretary, Department of Financial Services, Ministry of Finance, KC Mehra, chairman of the ASSOCHAM Knowledge Millennium Committee.

Deliberations were also made on aspects of growing foreign institutional investment, better use of technology to integrate market and financial practices, and Corporate and Government Bond Market.