May 1 (Reuters) - India's central bank governor on Friday urged banks and primary dealers to ensure that all participants have fair and transparent access to financial markets.
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Here are the details:
o Market participants must shoulder responsibility to ensure that broader regulatory objectives are met "in letter and spirit" even as organisational interests are pursued, Reserve Bank of India Governor Sanjay Malhotra said at a conference in Amsterdam.
o He said banks and market participants must ensure that every user has easy access to financial markets, and that all users are able to transact on fair and transparent terms, regardless of their size or sophistication.
o His remarks come as the RBI continues efforts to deepen India's financial markets, broaden participation, strengthen market infrastructure, and improve transparency.
o Earlier in April, sources had told Reuters that India's central bank is scrutinising the methods large banks used to unwind their rupee arbitrage positions on concerns that ?the trades may have breached regulations and impeded efforts to stabilise the currency.
o The governor also said that India's foreign exchange reserves are sufficient to pay for about 11 months' worth of imports.
o The current account deficit is seen as sustainable, with higher energy prices likely to push it wider but recent trade agreements expected to offset part of the impact, he added.
(Reporting by Anuran Sadhu in Bengaluru; Editing by Maju Samuel)
