The negative consequences considered included, as mentioned in the account of the discussion of the Governing Council in January 2015, “moral hazard implications for euro area governments [which] could weaken their incentives for structural reforms and fiscal consolidation”, as well as 2/4  BIS central bankers' speeches  possible “financial stability ramifications” and “spillovers from sovereign bond purchases, not only to corporate bond prices, but also into equity prices [which] could trigger the mispricing of risks…”2 Furthermore, throughout the life of the PSPP, there has been an extensive discussion on every aspect of the programme, in the central bank, in the academia and in the public arena.
The Reserve Bank is now considering introduction of bond futures in other maturities in consultation with the SEBI. Credit derivatives 28. The Indian financial system has traditionally been bank based system where the external financial requirements of firms have been mostly met by banks. In the preliberalisation era, there were specialised term lending institutions which used cater to the long term capital requirement.