India's financial markets include equities, the market for exchange-traded futures contracts, the bond market, the foreign exchange market, and the derivatives markets, which include the derivatives market in India. The Indian markets are among the largest in the world. The 2008 global financial crisis in the United States caused the Indian markets to underperform.
India's government has greater oversight over its financial markets than the United States government does over its markets in the United States, a fact that should not be conflated with the Indian stock market's relatively less regulated status. The country's Securities and Exchange Commission, the nation's securities regulator, regulates the banking industry and investment products sold to consumers and the securities market, including equity, fixed-income, and derivatives markets. A commission regulates the stock exchanges and the securities brokers that operate on those exchanges.
The Reserve Bank of India, or the RBI, is the central bank of India that monitors and regulates the Indian financial markets. The RBI is an independent organization, which is staffed by about 800 personnel. The reserve bank monitors the financial markets to keep the Indian economy from becoming unstable.
India's long-term financial needs are relatively similar to the United States since India was a British colony until independence. India's economy is dependent on exports, and its economy has the largest investment needs in the world. In 2013, foreign direct investment (FDI) in India totaled $24.6 billion. In the second quarter of 2014, India's FDI levels fell to $9.8 billion, a 45% decline.
There are two stock market indices for India
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