Non-Bank Financial Institutions (NBFI) are becoming an increasingly important segment of financial systems in developing countries. The growth of the NBFI sector holds the promise of deepening financial intermediation and providing channels for investment and risk diversification. However in the absence of a coherent policy frameworks and effective regulations , the regulatory arbitrage of NBFIs can have a destabilizing influence on the financial system.

In response to the request from the Financial Sector South Asia regional team and the Indian Government, the Financial Sector Vice Presidency and the World Bank Institute organize this country-specific workshop for India to address the promise created by non-bank financial institutions and the policy and regulatory challenges.

The Workshop seeks to create a platform for various stakeholders in order to facilitate the understanding of NBFIs. It aims to assist policy makers in creating a coherent policy structure and a sound regulatory and supervisory environment for the development of NBFI. This forum is designed to bring together stakeholders in the financial development process. That includes senior officials from Indian government with immediate responsibility for the financial sector policy development, staff from the World Bank and IFC, and top notch experts and practitioners on NBFIs policy and regulatory development around the world.

The first day offers an overview of the policy, regulatory and supervisory framework for NBFI, policy and regulatory challenges for Insurance, Pension Schemes, Mutual Funds, and Securities Firms modules The second day is devoted to action learning through group discussions and panel discussions to help the Indian policy makers to develop their own action plan on NBFIs development.