Government reiterates financial sector innovations, reforms

Buoyed by the improving signals in the economy, Finance Secretary Ashok Chawla has reiterated that the government was working with regulatory agencies to bring out more innovations and reforms in the financial sector as the growth in the Indian economy was returning. He was speaking on the sidelines of inauguration of interest rate futures trading on the NSE.

The country’s GDP growth in the first quarter of the FY10 stood at 6.1% indicating the economy back was on the growth track. The Index of Industrial Production (IIP) also grew by 5% while the services sector posted a growth of nearly 8%, possibly one of the highest in the world amid global economic slowdown.

He emphasized the need of inclusion of banks and FIIs in interest rate futures trading within the regulatory framework, giving a push to the product.

Apex body Securities and Exchange Board of India (SEBI) Chairman C B Bhave said that Indian markets have weathered the global economic crisis of the last eight to nine months when the crisis was at its peak. The markets have not hurdled with any major difficulties despite high degree volatility in the equity markets.