Monitoring short-term capital flows and responding to them  A belief that has recently grown in strength is that increased transparency on the part of all economic agents would sharply improve the functioning of markets and lead to greater financial stability.10 It is hard to object to this at the level of principle, though it is disconcerting that much of the impetus for this belief comes from a misapprehension.
The aim is to safeguard the financial sector and facilitate economic development through broadening and deepening of the capital market. In order to enhance the regulation and supervision of capital markets in line with international developments and standards, the Reserve Bank initiated the formulation of a new legislation, the draft Securities Bill.