At the dawn of the decade, numerous confidence-building measures attracted the global financial community to India. Regulatory, monetary and policy reforms coupled with arguably the most robust banking system among the emerging Asian economies, made market participants confident about investing in a geography earlier known for its bureaucracy and license regime.
Steps such as the introduction of FO futures and options, a rolling settlement system and the opening of foreign investment gates in sensitive sectors resulted in a significant increase in both primary investments and secondary market depth combined average daily turnover on the National Stock Exchange increased from $1.2 billion in fiscal 2001 to over $19 billion in fiscal 2010.
Increased...