(iii)  The importance of containing systemic leverage has been underlined. While obviously there can’t be market stops and starts for this purpose but the whole incentive structure built in the public policy framework needs to be aligned with the objective of disincentivising leverage beyond a point.
Any future financial market reform measure and introduction of new innovations/products must be preceded by an assessment of the resultant leverage for the system in quantifiable terms. (iv)  Financial sector entities need to be seen and regulated as risk repositories in the system – any notion of their risks being dissipated into or outside the system is inherently flawed.