Press Releases

January 2009

RBI reconstitutes TAC on Financial Markets

January 19, 2009

The Reserve Bank of India has reconstituted the Technical Advisory Committee (TAC) on Money, Foreign Exchange and Government Securities Markets. The composition of the reconstituted TAC is:

Chairman

1.Dr. Rakesh Mohan
Deputy Governor
Reserve Bank of India

Members

2.Dr. Arvind Virmani
Chief Economic Adviser
Department of Economic Affairs
Ministry of Finance and Company Affairs
Government of India

3.Shri M. S. Sahoo
Whole time Member
Securities & Exchange Board of India (SEBI)

4.Dr. R. Kannan
Member (Actuary)
Insurance Regulatory and Development  Authority (IRDA)

5.Dr. R. H. Patil
Chairman Clearing Corporation of India Ltd. (CCIL)

6.Shri Gagan Rai
Managing Director and Chief Executive Officer
National Securities Depository Ltd. (NSDL)

7.Shri Ravi Narain
Managing Director and Chief Executive Officer
National Stock Exchange of India Ltd. (NSE)

8.Shri C. Narsimhan
Deputy Managing Director and Group Executive (Global Markets) State Bank of India

9.Shri N. Mohan Raj
Executive Director (Investment-Operations)
Life Insurance Corporation of India

10. Shri Uday Kotak,
Vice Chairman and Managing Director Kotak Mahindra Bank Ltd.

14. Shri R. N. Vadivelu
Chief Executive
Foreign Exchange Dealers Association of India (FEDAI)

15. Shri A. P. Kurian
Chairman
Association of Mutual Funds of India (AMFI)

16. Shri Jayesh Mehta
Chairman,
Primary Dealers Association of India (PDAI)

18.Dr. T. T. Ram Mohan
Professor Finance and Accounting Area
Indian Institute of Management (IIM),
Ahmedabad

19. Dr. Errol D’souza
Professor, Economics Area
Indian Institute of Management (IIM), Ahmedabad

20. Shri Deepak M. Satwalekar
Ex Managing Director and Chief Executive Officer
HDFC Standard Life Insurance

21. Shri Amit Tandon
Managing Director
Fitch Ratings India Private Limited

Deputy Governor(s); Executive Directors in-charge of Financial Markets Department (FMD), Internal Debt Management Department (IDMD), Department of External Investments and Operations (DEIO) and Monetary Policy Department (MPD); and Heads of FMD, IDMD, DEIO, MPD, Department of Economic Analysis & Policy (DEAP), Foreign Exchange Department (FED); and Regional Director, Maharashtra and Goa of Reserve Bank of India will be permanent invitees.

The terms of reference of the Committee are:

i. to review and recommend measures for deepening and widening the money, foreign exchange and government securities markets including those relating to participants, products, institutional and infrastructural arrangements, etc.;

ii. to suggest measures for development of market and promoting liquidity in money market instruments, foreign exchange market and government securities;

iii. to examine and advise on the evolving and desirable linkages among the money, foreign exchange and government securities and capital markets;

iv. to review the infrastructure, legal and institutional arrangements for trading, transfer and settlement in the money, foreign exchange and government securities markets;

v. to prepare and consider papers on topics relating to product/market development and advise on the policies and practices for the same;

vi. to review the qualitative and quantitative aspects of risk management, accounting, disclosure, settlement, legal framework, etc., in the money, foreign exchange and government securities markets and render advise; and

vii. to examine any other relevant issue having a bearing on these markets referred to it, by RBI.

The Committee may appoint Technical Groups consisting of its own members and/ or outside experts to study and submit recommendations on specific issues, if necessary. The Committee will meet as often as it is required, but at least once in a quarter and will function for two years from the date of its first meeting.

It may be recalled that the Reserve Bank of India (RBI) had first constituted the Technical Advisory Committee on Money and Government Securities Markets on July 12, 1999 for a tenure of two years. So far, the TAC has been reconstituted thrice viz., in September 2001, in February 2004 and in June 2006. Keeping in view the inter-linkages between Money, Foreign Exchange and Government Securities Markets and implications for monetary policy operations, the ambit of the TAC was widened, at the time of its reconstitution in February 2004, to include the foreign exchange markets. The TAC is now being reconstituted so that the Reserve Bank can continue obtaining the benefit of opinion from financial market experts from areas such as, banking, academics, government, stock exchanges, credit rating agencies and market representatives. The confluence of ideas and the advice brought about by this wide representation has enabled the Reserve Bank to make further reforms in financial markets, including products, practices, institutional arrangements and regulation in these markets.