With the integration of the financial markets and free mobility of capital, risks also multiplied. With Globalization becoming part and parcel in the 21^st century, integration of the world economies is bound to occur which in turn makes every economy more vulnerable to any disturbance that occurs in any part of the world. For instance the recent occurrence of Sub prime crisis which has shook all the stocks markets of the world and also is the cause for slowdown of the global economy. Sub prime has occurred in USA, which consumes 40 per cent of the world consumption.