This market is one where a large number of borrowers finance the same securities on a short-term collateralized basis, with very high leverage – often in the range of twenty-to-one, fifty-to-one, or even higher.
At the same time, the pace and content of reforms in banking, financial and external sectors are closely aligned with the progress in reforms in the real and fiscal sectors and in the public sector as a whole, considering in particular that the banking sector in India is dominated by the public sector.