Mumbai, Mar 28 (UNI) Finance Minister P Chidambaram today stated that in a developing country where financial instruments are not very well and very widely understood, products should be as simple as possible.
Speaking at the launch of complexity levels of Credit Rating and Information Services of India Limited (CRISIL), India's leading Ratings, Research, Risk and Policy Advisory company, here today, Mr Chidambaram said, ''Innovation can be either good or bad, depending upon the context, the country and the state of financial advancement in that country.'' ''It is always wise to proceed cautiously in this matter,'' he observed.
The first set of CRISIL complexity levels were announced here at the launch of a service by Mr Chidambaram. The service, which is global, classifies financial instruments and products into three categories simple, complex and highly complex.
Aimed at improving transparency for investors in financial markets, the service is free and is being offered on a voluntary and pro-bono basis.
UNI JM SR SKB1751