The report provides an update of current views on the likely causes as well as effects of the period of economic turbulence during 1997-99. According to IOSCO chairman Paul Melly, the report has been prepared by countries which were hit during the meltdown and hence, it is the most comprehensive account of the crisis till date. ``Although the report is a continuation of some of the earlier works on the subject, its novelty lies in the fact that some of the crisis-hit countries have shared their experiences,'' he added.

Melly said although the report's particular focus was on events in East Asia, issues in relation with Russia and Brazil were also included.

``These events are distinct, because despite common elements, they do not have an identical cause and characteristics. In the Russian and Brazilian context, concerns about government creditworthiness played a central role.

In the East Asian context, on the other hand, government finances were broadly in balance and levels of public debt were low. The crisis was driven more by concerns about private indebtedness. However, there is much to be learnt from these three crisis,'' Melly added. The IOSCO chairman said the report is of particular importance because, for the first time, it talks of hedge funds and risk management by regulators.

On developing a framework for the development of a domestic secondary market for debt securities in developing countries, Melly said a task force has been set up to look into the reasons for the stunted growth of this segment in the emerging markets. ``The study is being carried out and, hence, I am not in a position to go into the causes as that make us prejudiced,'' he said, adding that a task force has also been initiated on Internet trading.

``Our approach to the Internet is very positive. However, at the same time, we want Net users to respect rules while trading and are in the process of evolving a regulatory framework,'' said Michel Prada, the head of IOSCO's technical committee. As Internet is essentially a trans-national phenomenon sharing of information is crucial, he added. At present, IOSCO has five specialised working groups which cover functional areas like disclosure and accounting; regulation of secondary markets; the regulation of market intermediaries; enforcement and exchange of information and investment management.

FII regulations unlikely?
Sebi chairman DR Mehta has said it will be difficult to bring the foreign institutional investors (FIIs) under the ambit of regulations. ``A consensus among the emerging markets to regulate FIIs is not forthcoming. With everyone vying for a slice of the FII pie, they are all talking of relaxations and not regulations,'' said Mehta, adding that an across-the-board norm for FIIs is unlikely.

``In fund-deficient emerging markets, everyone is chasing FII money. If we impose checks on FIIs and control the inflow of such money, FIIs will not invest here as they have other options, which offer similar returns.'' In India, Mehta said, the market regulator has taken a balanced stand. ``FII inflow is welcome, but, at the same time, we have a proper system in place to check volatility and wild gyrations.''