However, after the collapse of one of the brokers there was dispute about the ownership of securities highlighting the loopholes in the agreement entered. Indian experience Though the financial services industry in India is of a relatively recent origin, there have been many tricky legal issues that the industry has faced over the years.
These risks can be easily managed in the presence of well developed capital markets. (iv)  One inherent characteristic of bond and securities finance is the provision of better risk-sharing than banks. When securities are spread across a large number of individuals, the risk is more efficiently diversified.