Final report : interim evaluation of the financial institutions and expansion [FIRE] project

Interim evaluation covers the period 11/94-1/97. The component is being implemented by Price Waterhouse. The FIRE project has been highly successful to date, and its impact on Indian financial institutional development is clear and impressive. Technical consultants have been highly qualified, experienced in the issues faced by emerging markets, sensitive to other cultures, and effective in achieving desired goals. Special achievements are noted below. (1) FIRE consultants have worked with the Indian securities regulatory agency, the Securities Exchange Board of India (SEBI), to develop regulations and codes for stock brokers, mutual funds, and merchant bankers. FIRE consultants have assisted SEBI to develop courses, tests, and licensing procedures to qualify stock brokers for certification. (2) Through FIRE's influence and TA, the concept of self-regulation is gaining acceptance by securities professionals and SEBI. Brokers, mutual fund managers, and merchant bankers have formed member associations. (3) FIRE has worked with SEBI and the stock exchanges to develop surveillance and enforcement techniques. In addition, the stock exchanges in Bombay and Delhi and the association for the mutual fund industry are committed to providing information to public investors on a consistent basis and in a form that will be useful to them. (4) FIRE has provided training, seminars, and workshops for key financial personnel, benefitting the organizations for which they work through improved performance at higher levels of sophistication. At the strategic objective level, there are indications that India's capital markets are becoming increasingly efficient in mobilizing capital as measured by increases in the number and value of shares traded or changes in the number of issuers and investors. However, criteria of this kind do not serve as adequate measures of the effectiveness of an institution-building project such as this, and cannot be proven to be directly related to the activities of the project.