New Delhi, April 3 -- The Indian capital market's regulatory regime has seen fast-paced reforms in areas of operational-risk management such as contract settlement cycles, public offer processes, and so on. In several areas, the market has moved appreciably ahead of the expected curve of evolution, even if compared to capital markets in developed economies.

market risks have three frames: structural, systemic and operational. While the focus of reforms has been on minimizing operational risks and to some extent also systemic risks, the framework for market infrastructure institutions (MIIs) has not been transformed in tandem with either these changes or the market's growth, leaving the market exposed to structural risk.

In December 2024...