Finally, talking about regional capital market, the presence of regional financial institutions is a must. The recent initiative for the establishment of Asian Infrastructure Investment Bank is a welcome step in this regard. Equally important will be the initiatives for higher level of capital account convertibility of the currencies of the larger economies.
Besides, further financial liberalization and arrangements for cross border oversight and supervisory functions will be equally important. Harmonization of the regulations regarding AML/CFT, KYC, taxation, use of IT system, and statistical reporting are some other prerequisites for the development of an integrated regional capital market.