SC urges for greater inclusiveness, diversity
Greater inclusiveness and diversity in capital markets must be further promoted to build a stronger systemic stability and resilience in the sector, said Securities Commission chairman Datuk Ranjit Ajit Singh.
He said capital markets need to have the capacity to withstand periods of stress and uncertainty and to meet this end, the need to strengthen resilience has become more acute.
In his speech at the World Capital Markets Symposium 2013 in Kuala Lumpur today, Ranjit noted that through constant innovations in finance and technology, markets are becoming more interconnected and interdependent.
He said a robust and effective regulatory framework is critical in building systemic resilience in the capital market but resilience also depends on the internal composition of markets.
"This means encouraging greater participation by a wider group of investors, promoting greater diversity of financial and ancillary service, and providing innovative solutions to meet the financing needs of a broader range of businesses."
Ranjit also said there is a need for international coordination within the capital markets, given the increasingly cross-border nature of markets and its risk to ensure that regulatory responses do not generate adverse unintended consequences.