It is therefore very timely that we are having this seminar today to debate and discuss the implications of the changing international framework for emerging countries like India. Let me start with the Basel Committee.
In July this year, the Committee issued a series of standards for higher capital for the trading book as it was recognised that the Basel II framework seriously underestimated the capital needs for the trading book. Therefore, the Basel Committee has introduced new trading book capital rules that substantially raise trading book capital requirements.