Financial sector reforms to quicken, says PM

By Surojit Gupta and Paul de Bendern

NEW DELHI (Reuters) - India's long-stalled reforms to its financial sector gained momentum on Sunday after Prime Minister Manmohan Singh said he would push through legislative changes, including the insurance sector which foreign players are eyeing.

Investors have been keenly awaiting signs of a pick-up in the pace of economic reforms in India after disappointment that the re-elected Congress party did not speed up the process after May's elections.

"We are also better placed than at any time in the recent past to push the reform process forward," he told the World Economic Forum in Delhi.

Singh also said his government would take steps in the 2010/2011 fiscal year to wind down economic stimulus measures for Asia's third largest economy.

"Some of the reforms needed, especially in insurance, involve legislative changes. We have taken initiatives in this area and will strive to build the political consensus needed for these legislative actions to be completed," Singh said.

He said India needed to develop long-term debt markets, deepen corporate bond markets, strengthen the insurance and pensions sectors, improve futures markets for better price discovery and regulation.

"All these issues will be addressed through gradual but steady progress in financial sector reforms to make the sector more competitive while ensuring an efficient regulatory and oversight system," Singh said.

He also said the government would accelerate the sale of stakes in state-run companies