[10] In the 1990s, India embarked on a program of economic liberalization and reforms, which included significant changes in the financial sector.
The Narasimham Committee was set up in 1991 to examine the state of the financial sector and make recommendations for its reform.
Based on the recommendations of the committee, several measures were taken to liberalize the financial sector and promote competition.
FPI is subject to certain limits and conditions prescribed by the Securities and Exchange Board of India (SEBI).
The PMLA is the primary legislation for combating money laundering in India and is administered by the Financial Intelligence Unit (FIU) of the Ministry of Finance.
India is also a member of the Financial Action Task Force (FATF), an intergovernmental organization that sets standards and promotes effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system.
In addition to the PMLA, India has implemented several other financial regulations to combat money laundering.
The RBI was established in 1935 and is responsible for regulating and supervising banks and other financial institutions in India.
[72][73] The RBI's primary objective is to maintain the stability of the Indian financial system, which it achieves through various regulatory measures.
SEBI has issued various regulations and guidelines to ensure that the securities markets operate in a fair, transparent, and efficient manner.