And concerns about corporate governance probably contributed, at least in some measure, to the heightened business caution and sharp fall-off in business investment during this period. Thus, although other, more important factors were also working to restrain real activity during this period, it seems likely that the scandals exacerbated an already weak economic situation.
The objectives of market regulation As a developing country regulator, the RBI is focused on enhancing growth while maintaining stability. In the past, this has meant that the RBI has moved cautiously on liberalizing fixed income and derivatives markets. What is there about these markets for central banks to worry about? Typically three issues.