India's financial system has become more flexible and diverse: Sebi

New -Delhi, April 5 (IANS). The Securities and Exchange Board of India (Sebi) cited the latest report of the IMF financial system stability assessment (FSSA) on Saturday, saying the financial system of India has become more flexible and diverse due to rapid economic growth. At the same time, regulatory framework in security markets to manage and prevent emerging risks has been improved in accordance with international practice. The market regulator said in a statement that the financial sector in India encountered the epidemic by recovering from various crises of the 2010s. Referring to the findings of the IMF report, Sebi said: “In the context of the development of the financial sector landscape, the non-banking Financial Mediator (NBFI) sector became diverse, but more interconnected. Banks and non-banking financial enterprises (NBFCs) have sufficient capital to give medium loans in serious macro-financings.” Over NBFC’s regulation and supervision, the IMF has accepted India’s systematic approach to NBFC’s sensible needs with a scale -based regulatory framework. The IMF also appreciated India’s approach to the introduction of the bank line coverage ratio (LCR) for large NBFCs. For the oversight of banks, IMF advised to oversee IFSR 9 and upgrade oversight on individual loans, collateral valuation, linked lender groups, major risk section and transactions with related parties. The report further states that the most important reforms include the introduction of the Market Development Fund (CDMDF) in the corporate date, the introduction of swing pricing and liquidity requirements for mortgage -subject funds. According to the IMF-FSA report, the regulatory scope is also expanded in emerging areas such as stability for rapidly growing stock-derived products and investor safety measures. According to Sebi, the FSSA reports that India’s insurance sector is strong and on the path of development, which has a significant presence in life and general insurance. Supported by better regulation and digital innovation, the region remains stable. “The report mentions the progress of monitoring, risk management and improvement in management by India. -IsSKT/ABM