Uzbekistan implemented open banking model ahead of Western markets

Chairman Tuhin Kanta Pandey stated that the market regulator Sebi will soon publish the framework concerning changes in the Closed Auction Session (CAS) mechanism, market timeframes, and derivative contract settlements, after receiving over 3500 responses to his consultation paper.

The Securities and Exchange Board of India (Sebi) sought public comments regarding the proposal to revise certain aspects of CAS, as well as the calculation methodology for derivative contracts. The deadline for submitting remarks was set for October 3.

When asked about the timeline for releasing the final CAS framework or circular, Pandey said that the regulator would promptly study the received responses and continue the process. He noted that since the proposals in the consultation paper were clearly formulated, compiling and analyzing the responses would not take much time.

Sebi proposed changes to the CAS structure and the methodology for determining settlement prices for index and commodity derivatives on expiration days in September. This review followed the introduction of CAS in the cash equity segment and concerns about its impact on derivative settlement prices.

CAS is designed to determine closing prices through an auction process. Sebi emphasized that the goal of the review is to address specific issues while gathering opinions on various possible ways to resolve them.

Development of the Corporate Bond Market

Speaking separately about the development of the corporate bond derivatives market, Pandey stressed that regulatory support, technical infrastructure, and market participant involvement are crucial for the growth of this segment. He added that Sebi aims to promote exchange systems in the bond market and has already taken steps such as introducing an electronic trading platform for primary issuances, regulating online platform providers for bonds, and strengthening the quote request mechanism for secondary market trades.

Pandey believes that 'bond indices and derivatives will be a major milestone in the future.'

Foreign Portfolio Investor Flows

Regarding Foreign Portfolio Investor (FPI) flows, Pandey explained that Sebi's task is to facilitate the registration process and access to Indian markets, while investment decisions ultimately depend on the returns and opportunities available in different countries. He reported that Sebi is collaborating with the Reserve Bank of India (RBI) on measures aimed at further simplifying access for FPIs. The regulator has already taken several measures, including allowing FPIs access to non-agricultural commodity derivatives.

Pandey concluded that FPI assets may grow or decline depending on investment opportunities in the markets. He emphasized: 'All we can do at the regulatory level is listen to what FPIs say and facilitate their registration and access.'

During his address at KEC 2026, RBI Governor Sanjay Malhotra outlined five priorities for policymakers and urged vigilance regarding emerging systemic risks, which are becoming increasingly interconnected and cross-border.

Sanjay Malhotra, Governor of the Reserve Bank, stated on Saturday that the current stability of the financial system should not be viewed as a guarantee against future vulnerabilities, emphasizing the need for continuous monitoring to ensure financial stability.

Speaking at the Kautilya Economic Conclave, he presented five areas of focus for politicians, stressing that the focus of financial stability should shift not to preventing shocks, but to strengthening the financial system's ability to withstand and contain their consequences.

He noted: 'Today's stability does not necessarily imply immunity tomorrow, and we strive to remain vigilant about emerging vulnerabilities and continue to keep our financial system strong and resilient,' he added, mentioning the reliability of the financial system supported by healthy bank and NBFC balance sheets.

According to him, shocks, whether domestic or external, are inevitable, and the main goal is to create a financial system capable of providing financial services even under severe stress.

Malhotra also pointed to a new generation of systemic risks that are becoming increasingly exogenous, cross-border, and interconnected. He suggested that the next financial crisis might originate not in a bank or even the financial sector, but from a geopolitical event, cyberattack, or technological failure, affecting the financial system through multiple channels.

The Governor stressed the importance of better understanding network dependencies and contagion channels, insisting that scenario analysis must become the cornerstone of risk management.

Furthermore, the RBI Governor called for improving monitoring and assessment frameworks by using more detailed and granular data. He noted that information on Non-Banking Financial Institutions (NBFI), interconnected exposures, technological developments, and cross-border positions can remain fragmented, and the quality of this data will increasingly determine the quality of risk assessment in an interconnected financial system.

He also stated that stability must be 'systemic,' as a strong banking system, while necessary, is insufficient. Stability is required across all sectors: in NBFI, financial markets, payment systems, technology infrastructure providers, critical third parties, and cross-border financial networks.

Regarding financial innovations, Malhotra reported that technologies such as artificial intelligence and tokenization, as well as new forms of financial intermediation, can significantly enhance efficiency; however, innovations must not undermine the foundations of trust in the financial system. He specifically highlighted fundamental properties that must be preserved: institutional reliability, finality of settlements, unity of money, and financial integrity.

He concluded that the task is to build a financial system capable of withstanding both predictable and unforeseen shocks. This will require resilient institutions, improved data, deeper markets, robust safeguards, effective resolution mechanisms, as well as regulation and supervision that are proactive and farsighted while remaining proportionate. 'If we succeed, financial stability will largely go unnoticed, and in central banking, invisibility is perhaps the most valuable and significant measure of success,' he added.

When traveling by train, passengers often notice various signs along the railway track. Among them is a sign with the inscription 'W/L', and sometimes in Hindi, 'सी/फा'. This raises the question of the meaning of these two letters, the reason the railway installs such a sign, and why the train driver sounds an alarm (honks the horn) upon its detection. In fact, this small sign is an important warning concerning the safety of people near the train and at level crossings.

In railway terminology, 'W/L' means 'Whistle for Level Crossing'. Simply put, it indicates the presence of a level crossing ahead, and the train is required to sound a horn or whistle. This same signal is designated as 'सी/फा' on some sections, which translates to 'Whistle for Level Crossing/Crossing'. When the engineer sees a W/L or सी/फा sign at the edge of the track, they understand that a crossing is approaching and are obligated to sound a signal.

The need to sound a horn near a level crossing is related to the fact that many such crossings are located in places where pedestrians walking on the road find it difficult to notice the train's approach in advance. This is especially relevant if visibility is hindered by trees, buildings, turns, or other obstacles. In such cases, the horn serves as a warning for nearby people. As the train approaches the crossing, sounding the horn, people on the road and staff working at the crossing can take necessary precautions.

According to railway rules, the W/L sign is installed near unguarded crossings where there is no personnel at the barrier. It is also placed at some guarded crossings if the crossing itself does not provide a clear view of the track.

If you look closely at the W/L sign, it is usually a square yellow plate with black letters. The purpose of this design is obvious: the yellow-black combination is easily visible from a distance, allowing the engineer to see the signal in time. Official railway rules also establish standards regarding the size, color, and placement of these signaling boards.

Not only W/L signs are installed on the railway track. In some places, you may encounter a sign that only says 'W'. The 'W' sign generally serves as an indication that a whistle or horn needs to be sounded. Such signs may be placed where the view of the track is obstructed by a curve, embankment, or other obstacle. Thus, both W and W/L warn the engineer about the need to sound a signal, but W/L specifically refers to a level crossing.

By listening to the train's horn, we tend to think that the engineer is warning people to move off the track. However, horns have various meanings within the railway system. The W/L sign is part of this system. Its purpose is to notify people near the level crossing about the train's approach. According to railway rules, upon spotting a W/L sign, the engineer is obliged to follow the procedure of sounding the horn/whistle before the corresponding crossing.

Next time you are watching the scenery from the train window, if you see a yellow W/L or 'सी/फा' sign at the edge of the track, understand that the railway is sending you an important message. It is not just an ordinary sign; it informs the engineer about the presence of a crossing ahead and the necessity of sounding a signal during passage to warn those around. That is, this small sign installed by the track is part of a large-scale railway safety system.