Globalization, Crisis and Financial Engineering in India

The last three decades have witnessed a phenomenal growth in innovations in financialmarkets. This is of interest to all financial intermediaries including commercial andcorporative banks, insurance companies and other financial institutions.Globalization, Liberalization and Privatization have added both the risk and rewardsto these innovations. This paper investigates various new financial innovations inthe field of banking, insurance, capital market and mutual funds in the last one yearin India. We have also tried to figure out the salient features, advantages anddisadvantages of the various financially engineered products and processes. The paperalso tries to discuss the way ahead for India in the field of financial innovations