RBI sets up committee for financial markets; to focus on policy matters across money markets, G-Secs

The Reserve Bank of India (RBI) on Wednesday announced setting up a Technical Consultative Committee for Financial Markets (TCCFM) which will focus on critical policy and operational matters across money markets and government securities, among others.

The Committee will be headed by the Deputy Governor (DG) in charge of the Financial Markets Regulation Department (FMRD). Currently, this portfolio is held by Deputy Governor Rohit Jain.

"The Committee will serve as a forum for structured engagement with market participants and stakeholders by the RBI on policy and operational matters related to money, government securities and foreign exchange markets as well as the respective derivative markets and infrastructure," it said.

RBI said the TCCFM will take up issues relating to trading, clearing, settlement, reporting and other market infrastructure, including the associated regulatory and operational frameworks.

"Issues related to the functioning, efficiency, liquidity and resilience of the money, government securities, foreign exchange and related derivative markets, and identification of measures to deepen and broaden these markets," are among the Terms of Reference (ToR).

The panel will also focus on emerging policy and operational issues affecting financial markets, including implementation of RBI measures and identification of unintended market frictions.

It will also look into international and domestic developments, financial innovations, and emerging risks that may affect Indian financial markets.

The meetings of the Committee will be convened at least once a quarter, the RBI said.

Ananth Narayan (former Whole Time Member, SEBI, and Professor of Practice, IIT Bombay); Neeraj Gambhir (Executive Director, Axis Bank); Shailendra Jhingan (Head, Treasury and Economic Research, ICICI Bank); and Aditya Bagree ( Managing Director, Head (Markets), Citibank India) are members of the panel.

Shamsher Singh (Chairman, FIMMDA and Deputy Managing Director, SBI); Nand Kishore ( Managing Director, CCIL) and Ridham Desai (Managing Director, Morgan Stanley India) are the other members of the committee.