Nevertheless, there is a broad agreement that private pools of capital, including hedge funds, can be a source of risk owing to their combined size in the market, their use of leverage and maturity mismatches, and their connectedness with other parts of the financial system. The widespread reliance of market participants on credit ratings of market instruments led to inadequate risk analysis by themselves.
Let me quickly recall here some of the important measures that the RBI has taken to help flow of funds to infrastructure: 1. In view of the fact that projects take long time to implement during which the interest cost is part of the project cost, the importance of a specified time for commencement of commercial operations is high.