Money market operations need no longer be confined to Mumbai. This should certainly be cheered by Chennai! The prescription that banks, Financial Institutions, Primary Dealers etc. should invest in CPs and other instruments only in demat form is a significant new measure which will virtually make all these markets into demat mode, thus ensuring safety for all including individual investors.
At the same time, revised capital regulations, oversight and market practices are pushing the banks towards more careful risk control; they necessitate lower but steadier profits than in the pre-crisis decade. Bank shareholders need to realize this.