Similarly, the Government securities market is important for the entire debt market as it serves as a benchmark for pricing other debt market instruments, thereby aiding the monetary transmission process across the yield curve. The Reserve Bank had, in fact, been making efforts since 1986 to develop institutions and infrastructure for these markets to facilitate price discovery.
Concluding thoughts In conclusion, I would like to mention that the role of financial markets in the process of a country’s economic development needs no emphasis. At the same time, as the recent crisis has shown, financial markets can be the epicenter of crises that derail the growth process itself and unleash great misery.