The government is committed to financial sector innovations and reforms, a senior government official said.
"The government is working with regulatory agencies to bring about financial sector innovations and reforms," Finance Secretary Ashok Chawla said at the launch function of interest rate futures at the National Stock Exchange today.
Chawla said that growth in the Indian economy was returning.
"Surely, there are signs the economy is moving back to a higher growth path. The move to a higher growth trajectory is well on course," Chawla said.
The GDP growth in Q1FY10 of 6.1 per cent indicate that the economy is back on the higher growth path. Similarly, the Index of Industrial Production (IIP) growth at around 5 per cent and service sector growth at around 8 per cent were also promising, he said.
On the launch of interest rate futures today, the Finance Secretary said that volumes were not the only thing. The manner in which the market develops is very important, he said.
Banks and FIIs can also participate in interest rate futures within the regulatory framework, he said, adding that this is expected to give a push to this product.
Market regulator Securities and Exchange Board of India (Sebi) Chairman C B Bhave said that despite the global economic crisis of the last eight to nine months, the Indian markets withstood the crisis well.
"In the last eight to nine months when the global economic crisis was at its peak, despite the volatility in the equity markets, the (Indian) markets withstood the crisis," Bhave said, adding "we were able to conduct the settlements in an orderly manner."
The market has so far has not faced any difficulties in settlements, he said.
"It will be our effort to bring more products on the exchange traded platform," the Sebi Chairman said.
On the credit market and the squeeze it faced in recent times, Bhave said that one of the main reasons for this was that people were not sure of the value of assets.
