The Nifty50 index and BSE Sensex have lacked cheer this calender year with merely 1.55% and 4.5% returns, respectively. Additionally, Indian bourses have continued to be one of the most expensive in terms of price-to-earnings (P\/E) ratio inspite of a sharp sell-off in emerging markets this year. However, speaking at the inauguration of ninth Financial Markets Summit organised by the Confederation of Indian Industry (CII) on Friday, Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi said the performance of Indian capital market compares favourably with other major global markets on parameters such as indices\u2019 returns, volatility and currency movements despite challenging domestic and global environment. \u201cGlobally, capital markets have been quite volatile during the current year and are likely to remain so in coming times on account of various factors,\u201d Tyagi added. As for domestic issues, NBFCs have been facing tight liquidity since September 2018. \u201cThough much has improved on account of various steps taken by RBI in providing systemic liquidity. Of course, the biggest bonanza for the Indian economy has been fall of about 30% in crude oil prices in the last one month. The macros of the economy have much improved since then,\u201d Tyagi added. He further added that alternative funding sources, including municipal bonds, InVIT and ReITs, are gaining prominence in the economy. CII president designate Uday Kotak agreed that the financial sector was at the cusp of transformation from the saver-borrower model to the investor-issuer model. \u201cAll players in the financial market have a significant responsibility of nurturing these trust of savers moving from other assets into financial assets,\u201d added Kotak. He emphasised that there is urgent need to bridge the gap between perception in mind of depositor and the regulators about savings and the reality on ground. T Rabi Shankar, chief general manager, Financial Markets Regulation Department at the Reserve Bank of India, said that in terms of infrastructure,settlement and transparency, India is probably the best in the world, even the US does not have full reporting of transactions. \u201cHowever, we lag behind in terms of market volume and market liquidity. There is liquidity in some securities but we do not have liquidity beyond the curve. The other issue we need to address in government securities market is investor diversity,\u201d added Rabi. Leo Puri, chairman, CII National Committee on Financial Markets, stressed the need for integration of various markets with a view to derive the long-term benefit of low intermediation cost.