These included development of market micro structure, removal of structural bottlenecks, introduction/ diversification of new players/instruments, free pricing of  BIS Review 97/2007  3  financial assets, relaxation of quantitative restrictions, better regulatory systems, introduction of new technology, improvement in trading infrastructure, clearing and settlement practices and greater transparency. Prudential norms were introduced early in the reform phase, followed by interest rate deregulation.
These policies were supplemented by strengthening of institutions, encouraging good market practices, rationalised tax structures and enabling legislative and accounting framework. II. A review of monetary policy challenges  The conduct of monetary policy has become more challenging in recent years for a variety of reasons.