"In consultation with the RBI, I propose to appoint a high-powered expert committee to advise the government on how to make Mumbai a regional financial centre," he said presenting the UPA government's second Budget.

In the last one decade, India has built world-class institutions in the securities market and compares with the best in terms of technological sophistication, risk management and governance, he said.

"I believe the time has come to begin work on making Mumbai a regional hub for finance," Chidambaram added.

The National Stock Exchange and Bombay Stock Exchange, located in Mumbai, now rank number 3 and 5 among the stock exchanges of the world by number of trades per year.

"When I look at the map of the world, I am struck by the strategic location of Mumbai. It lies almost midway between London and Tokyo, the two nerve centres of the world," he said.