In the latest global 'assessment study' of the regulatory framework for financial market infrastructures across the world, India's financial market regulatory framework has received the top-most ratings from the global bodies of banking and capital market regulators, with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) being rated better than their peers in China and the US.
In the assessment study only six countries, including India, have got the highest score of '4' for all eight parameters on a scale of one to four. The other five countries are Australia, Brazil, Hong Kong, Japan and Singapore. The 'Rating Level 4' for India means that the financial market regulators - the RBI and Sebi - have all regulatory measures 'fully in force'.
The annual assessment studies the implementation status of the international Principles for Financial Market Infrastructure (PFMIs) in various countries. The study showed that capital market watchdog Sebi and the RBI have put in place all necessary regulations for the PFMIs, while they also 'have a legal capacity to implement the responsibilities' outlined under these global standards.
The assessment took into account regulations for central counter-parties, trade repositories, payment systems, central securities depositories and securities settlement systems and India scored top ratings on all these counts. The next update of the first-level assessments will be conducted next year.