'Regulatory framework needed for gilts market'

A stringent regulatory framework is required for the government securities market in the country, said R H Patil, chairman, Clearing Corporation of India Limited.

Speaking at the second 'International conference on business and finance - 2004' organised by the ICFAI University in association with the Philadelphia University. According to a press release, Patil said that any fluctuation in the securities market, unlike those in the equities market, could adversely affect the interest rates.

"Wild fluctuations can hurt a soft and flexible interest rate regime," he said which is imperative to ensure sustained economic growth," Patil added at the second 'International conference on business and finance - 2004' organised by the ICFAI University in association with the Philadelphia University.

The derivatives market is dominated by more of individual investors than institutional investors, Patil said, adding that the reasons for this were low contract price and transaction charges in the country.

D K Malhotra from Philadelphia University, USA, said that the objective of this two-day conference was to bring together academicians and practitioners with research interests in the field of finance, business management and accounting.

He added that the collaboration between the ICFAI University and the Philadelphia University has been resulting in a strong network among researchers in both the countries.