ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Secondary MarketsSubscribe to Secondary Markets

Secondary Market to the Fore

The growth of the financial market in 2002-03 was much more marked in the secondary market than in the primary segment. Turnover in all three components of the secondary market - equity, debt and forex - continued to grow apace.

Entering a Low Interest Rate Regime

The economy has entered a low interest rate regime with the latest monetary and credit policy statement of the RBI. While a favourable economic policy environment has made this possible, issues concerning the external sources of liquidity and sluggish investment and growth have not received the attention they deserved. If cognisance had been taken of them, the RBI's policy response may have been different.

Productive Deployment of Excess Liquidity

The reduction in government borrowing, as the government continues its efforts to bring down the fiscal deficit, is sure to result in excess liquidity in the financial system. Optimal use of funds in this situation will rest on the quality of the banking system's credit delivery and recovery mechanisms.
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