Regulation may act as a guiding force in such times by prescribing appropriate rules, or by creating incentives for appropriate behaviour. We in India were reasonably insulated from the global financial crisis, but have been facing challenges. Our  12  BIS central bankers’ speeches  regulatory approach has been cautious and calibrated with focus on financial stability and market development.
Reforms in the G-Sec market carried out since the early ‘90s have ensured that the market is a well-organized and appropriately regulated with world class market infrastructure for trading and settlement. Our endeavour has been to promote market transparency, financial soundness of institutions by prudential regulation and orderly market conduct.