Evolution of markets and market regulation in India 8. From a regulatory perspective, one of the biggest challenges is to recognize the inherent market imperfections and build a framework around that to leverage the benefits of well-functioning, deep, liquid markets. Over more than a decade, the Reserve Bank has been firmly committed to financial sector reforms.
It is equally obvious that the other two sets of policy changes are quite closely related to the international agenda. More than in most other areas, the financial sphere suffers from a basic lack of congruence between the authority to regulate and the object of regulation.