Financial Sector Reforms: An Unfinished Agenda for Economic Development

Financial sector being the backbone of the economy of a country must be transparent, efficient and resilient. Efficiency in the financial sector has a significant influence on the growth and development of a country. To make the financial sector of India more vibrant and efficient and to give a fillip to the sagging and depressed economy, reforms were introduced in the beginning of 1990’s. These reforms included establishment of SEBI, more freedom to money and capital markets, liberalization of norms relating to foreign capital, establishment of mutual funds in the public and private sectors and improved disclosure norms. The financial sector reforms and opening up of the economy has exposed traditionally protected financial institutions and the industry to greater level of competition. They are facing the challenges of adjusting to the new environments. The process of financial sector reforms is not yet over. To revitalize the financial sector, the Government of India is rightfully planning to introduce second generation financial sector reforms. In view of the above developments the University Business School, Panjab University, Chandigarh held a U.G.C. sponsored national level seminar on "Financial Sector Reforms—an unfinished Agenda on 18th March 2000. The seminar focussed on the effect of first phase of reforms on the economy of India and identified the areas which should be covered by the second generation financial sector reforms. The papers presented in this seminar are being brought out in the form of this volume. The papers included in this book deal with different aspects of financial sector of the economy viz., Banking sector reforms, capital market reforms, operations of the securities market and the financial sector reforms and the service sector. Almost all the authors agree that the financial sector reforms should be based upon logical premise well-focussed and properly implemented. It is hoped that the volume would be of great interest to the common readers, researchers, students and the teachers.