RBI has constituted Technical Consultative Committee for Financial Markets (TCCFM)

The Reserve Bank of India has announced the constitution of the Technical Consultative Committee for Financial Markets (TCCFM) against the backdrop of rapidly evolving financial markets and infrastructure. The Committee will serve as a forum for structured engagement with market participants and stakeholders by the Reserve Bank on policy and operational matters related to money, government securities and foreign exchange markets as well as the respective derivative markets and infrastructure.

The main purpose of the Technical Consultative Committee for Financial Markets (TCCFM) is to help the Reserve Bank of India (RBI) improve the functioning, efficiency, transparency and stability of India’s financial markets.

In simple terms, the committee will provide RBI with expert advice on financial market-related policies, regulations and operational issues.

Why has RBI constituted this committee?

Financial markets are continuously evolving due to technological developments, new financial products, international developments and changing economic conditions. RBI wants a structured platform where it can discuss these developments with experts from banks, financial institutions, market associations and other organisations. The committee will help RBI identify problems in financial markets and suggest improvements.

Composition of the Committee

The Committee will be Chaired by the Deputy Governor (DG) in charge of the Financial Markets Regulation Department (FMRD) of the Reserve Bank of India. The Committee will comprise the following external members:

1. Shri Ananth Narayan, Former Whole Time Member, SEBI, and Professor of Practice, IIT Bombay;
2. Shri Shamsher Singh, Chairman, Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Deputy Managing Director, State Bank of India;
3. Shri Neeraj Gambhir, Executive Director, Axis Bank;
4. Shri Shailendra Jhingan, Head, Treasury and Economic Research, ICICI Bank;
5. Shri Aditya Bagree, Managing Director, Head (Markets), Citibank India;
6. Shri Nand Kishore, Managing Director, Clearing Corporation of India Limited; and
7. Shri Ridham Desai, Managing Director, Morgan Stanley India.

Meetings

The meetings of the Committee will be convened at least once a quarter.

Purpose of Committee

Improving financial market efficiency: The committee will examine how to improve the functioning, liquidity and resilience of money markets, government securities markets and foreign exchange markets.

Strengthening market infrastructure: It will discuss issues related to trading, clearing, settlement and reporting systems to make financial market operations more efficient.

Identifying regulatory challenges: It will examine difficulties arising from the implementation of RBI regulations and suggest ways to address unintended problems.

Addressing emerging risks: The committee will consider domestic and international developments, financial innovations and emerging risks that could affect Indian financial markets.

Deepening financial markets: It will identify measures to broaden participation and improve liquidity in India’s financial markets.