Prof. Jayanth R. Varma’s Financial Markets Blog

Because of their nature and intended purpose, foreign exchange reserves must be invested in high quality liquid assets.

Last month, India’s capital market regulator, the Securities and Exchange Board of India, introduced the system of closing auctions to determine the closing prices of securities in line with global best practices.

I finished reading the fascinating book Capital and Finance in the Age of the Renaissance: A Study of the Fuggers and Their Connections by Richard Ehrenberg, translated by H.

There has been a great deal of consternation in the media about India’s recent capital account deficit caused by net outflows of both Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI).

During the last three months, I have posted multiple times on the growing maturity and depth of Indian financial markets (for example, here, here, and here).

In a blog post in February, I argued that we have been witnessing the gradual onshoring of the Indian corporate bond market.

Back in January, I wrote a couple of blog posts in which I welcomed the emergence of a new generation comfortable with equity investment and credited this group with driving the shift that has taken place from foreign to domestic sources of risk capital in

In my last three blog posts, I wrote about the emergence of large pools of domestic risk capital in India, the crowding out of foreign risk capital, the shrinking share of bank deposits in household financial savings, and the rapid growth of asset managers

In my last two posts, I discussed how the emergence of domestic risk capital in India could be crowding out foreign capital.

In my previous blog post, I described how and why the Indian financial system has quietly pivoted from relying on foreign risk capital to mobilizing domestic risk capital, reversing a dependence that goes back to the mid 1990s.

During the last decade or so, the Indian financial system has quietly pivoted from relying on foreign risk capital to mobilizing domestic risk capital, reversing a dependence that goes back to the mid 1990s.