The process of evolution needs to be seen in perspective of the boundary conditions imposed by the broader macroeconomic framework for the development of the financial sector. The process of financial market reforms in India is less than two decades old.
It was in March 1993 that a system of market-determined exchange rates was adopted by India as part of a broad set of structural reform measures. Gradually, financing the fiscal deficit transitioned from automatic monetisation to market-based borrowings resulting in a regular supply of marketable securities.