Beyond the above agenda, there are several other work-streams whose recommendations have a bearing on the functioning of the markets. For instance, the FSB work-stream on resolution of financial entities requires host country jurisdictions to allow bailin clauses for all deposit liabilities raised by home country entities. The implications of such a sweeping mandate could be serious for the interests of domestic depositors.
The challenge would be to strike a balance of the interest of various stakeholders. 46. In India, a Standing Committee under the Technical Advisory Committee (TAC) on Financial Markets has been constituted to assess, on a continuing basis, the implications of recommendations of various international standard setting bodies, through different workstreams, on domestic OTC markets.