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UTI chief calls for mature financial markets in India to keep pace with world

The emerging order in the foreign exchange markets is all set to prepare the markets for eventual capital account convertibility which is the most critical reform measure for the entire economy, said P S Subramanyam, chairman, Unit Trust of India.

Addressing the South Indian Education Society's College of Commerce and Economics in Bombay, he said the Indian financial markets, particularly the foreign exchange markets, will have to reach their highest level of maturity to absorb the ups and downs of a global financial system.

International investors have recognised the potential of India, with its huge reservoir of intellectual capital, said Subramanyam. Indians have already been making a mark in the international circuits in the financial services and information technology, he added.

It is now time to unleash the untapped potential of Indian intellectual capital within India to improve the fortunes of Indian companies by sharpening their competitive edge.

Along with the internal restructuring, companies will have to focus on good corporate governance, mergers and acquisitions and risk management. He said these steps would contribute to enhancement of stockholders' values and upswing in capital market sentiments.

Subramanyam said Bombay can emerge as an offshore financial centre. With the right telecom infrastructure and regulatory support, Bombay can give stiff competition to Singapore and Hongkong. At the same time, a well developed foreign exchange market is key to the fulfilment of this dream, he added.

UNI

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