We would also work towards enhancing the overall liquidity in Government securities market in terms of availability of two-way quotes in less liquid maturities through targeted market making schemes. Further, measures towards activation of a securities lending and borrowing programme, inter-operability of depositories for smooth transfer of ownership in securities will receive our attention.
Often the best regulation is that which addresses specific abuses or public policy concerns. Regulation that anticipates potential future problems runs the risk of resulting in overregulation that unduly stifles innovation. Conclusion I’d like to conclude by re-emphasizing the role of competitive markets in fostering continued efficiency and innovation in the U.S. payments system.