Some of these countries had to face interruptions and reintroduction of capital controls in the evolution of CAC. In this context, I recall the observations of former Governor, Dr. Bimal Jalan and I quote, “...It must be understood that merely by lifting all capital controls, the markets of a developing country do not get as deeply integrated as a developed country’s markets.
As such, each country would need to decide on its own path of capital account liberalization with regard to the timing and sequencing”. The Tarapore Committee had also recommended change in the legislative framework governing foreign exchange transactions.