Pursuit of complete markets: the missing perspectives

India's financial sector reform path has been a measured, cautious and steady process, aiming to attain standards of international best practice, but fine-tuning the process keeping the context in view. Although much has been achieved, this paper focuses on the remaining gaps. But post-crisis the pursuit of complete markets is no longer the holy grail of regulation. In particular, underlying needs and systemic risk assessment should drive the regulatory framework for cash markets, not the elusive search for market completion and efficient derivatives markets.