Asset Reconstruction Companies have been allowed to be set up which are in the private sector and operate as independent commercial entities to acquire non-performing assets from any financial entity and restructure and rehabilitate or liquidate them within a definite time frame. This has created a market for distressed assets in India.
•  The government securities money and forex markets have significant public policy implications for an emerging market economy. These have developed during the reform period with impressive diversification of participants and instruments. •  The smooth functioning of the payment and settlement system is a pre-requisite for financial stability.