Ensuring Fairness in Forex and G-Sec Markets

RBI Governor Sanjay Malhotra emphasized the importance of fair treatment for smaller customers in the forex market and increasing retail participation in government securities (G-Sec) during his speech at the FIMMDA-PDAI’s annual conference in Bali.

Challenges and Opportunities in Financial Markets

Malhotra highlighted the challenges of dwindling liquidity in the call money market and the need for banks to ensure seamless transmission of RBI’s liquidity measures. He also praised India's advancements in financial market development, which have supported economic growth and inspired global confidence.

Enhancing Retail Participation in G-Sec Market

The RBI has taken steps to improve secondary market liquidity for retail investors in the G-Sec market, aiming for reasonable pricing. Malhotra urged banks and primary dealers to play a more active role in improving liquidity and pricing for smaller participants like cooperative banks and pension funds.

Addressing Forex Market Disparities

Malhotra pointed out the wide pricing divergence between small and large forex customers, partly due to banks' reluctance to offer their platforms. The RBI has launched FX Retail, a transparent platform for forex transactions, to address this issue and warned against unauthorized forex trading platforms.