Financial Market Regulation And Reforms In Emerging Markets
- IJLLR Journal
- Apr 17
- 1 min read
Lutsa Ghosh, BA LLB. (H), Amity Law School, Amity University, Kolkata
Esha Sarkar, BA LLB. (H), Amity Law School, Amity University, Kolkata
ABSTRACT
Emerging markets have experienced remarkable growth in their financial sectors over recent decades, but this expansion has also brought challenges like instability, market failures, and systemic risks. To tackle these issues, policymakers have introduced reforms such as tighter prudential oversight, better market infrastructure, stronger risk management, and greater financial inclusion. Effective regulation is essential to maintaining stability, strengthening investor’s confidence, and promoting prolonged economic growth in these economies.
This paper examines how financial market regulation and reforms can address the distinct challenges of emerging markets, starting with their inherent weaknesses—volatility, underdeveloped regulatory systems, and exposure to external shocks. It also assesses how regulatory bodies and governance frameworks influence market transparency and integrity. While progress has been made, persistent challenges remain, including pressures from global financial cycles, technological disruptions, and rapid but uneven growth.
Regulators must continuously adapt to these evolving risks, as the complexity of emerging markets makes it difficult to stay ahead of new threats. The study highlights that despite advancements, cooperation between regulators and financial institutions remains a hurdle. Moving forward, ongoing innovation in regulation is crucial to ensuring these financial systems remain stable, resilient, and efficient in the face of future challenges.
Keywords: Financial market regulation, emerging markets, financial stability, market infrastructure, risk management, financial inclusion, regulatory innovation, reform.
