Regulatory caution slows India derivatives market development
India is keen to portray itself as an attractive destination for foreign money, but regulator caution continues to stymie external participation in the derivatives market
Regulators in India are performing a tough balancing act between allowing foreign capital to enter the country on the one hand and maintaining currency stability on the other. This juxtaposition is limiting growth of the derivatives market; now people are asking if more can be done to open up the sector.
There is widespread recognition that India needs a significant inflow of capital in order to
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