Regulatory Infrastructure Covering Financial Markets

and development of any country. Raising capital and allocating financial resources efficiently are an integral part of economic development. It is now well established that securities markets are not casinos; rather they are essential for the growth and development of a country. Recent literature documents the direct linkage between capital market development and economic growth. It also documents the essential role of capital markets in improving corporate governance, disclosure standards, transparency in the marketplace, and accounting standards. The optimal amount of transparency and regulation leads to market credibility and results in market growth. A sound regulatory framework is the cornerstone of vibrant financial markets, but global competition is the force that is driving innovation in the markets. The creation of a global financial system has made the risks of contagion and systemic failure much more likely. The impact of the Asian crisis