Fifth, impressive institutional and legal reforms have been undertaken in relation to the banking sector. In 1994, a Board for Financial Supervision (BFS) was constituted comprising select members of the RBI Board with a variety of professional expertise to exercise 'undivided attention to supervision'.
The continuity of this information flow is crucial to the process of price discovery – that is, the ability of market participants to assess the fundamental worth of each financial asset. During periods of financial distress, however, information flows may be disrupted and price discovery may be impaired.