New Delhi, April 6 -- India's financial system has become more resilient and diverse, driven by rapid economic growth, and regulatory framework in securities markets has been enhanced in line with international practice to manage and prevent emerging risks, the Securities and Exchange Board of India (SEBI) said on Saturday, citing a latest IMF-Financial System Stability Assessment (FSSA) report.

The markets regulator said, in a statement, that the financial sector in India has shown recovery from various distress episodes of the 2010s and withstood the pandemic well. "In terms of evolution of the financial sector landscape, the Non-Banking Financial Intermediaries (NBFI) sector has become diverse but more interconnected.

Banks and Non-B...