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FORUM VIEWSFEBRUARY 2018 | VOLUME: 6 • ISSUE NO. 11 •

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5 FORUM VIEWS - FEBRUARY 2018

Dr. Vispi Rusi BhathenaChief Executive Officer

Members’ and Readers’,

THE MARCO ECONOMIC INDICATOR ARE WEAK: The Indian Economy seems to have headwinds of weak macro-economic data with the GDP advance estimates showing 4 year low GDP from 7.1 % to 6.5 %. This has been the lowest GDP in the last 4 years in the current tenure of the government. The below table shows that Gross Capital formation which has also hit down from 30 % to 26 % and the Private consumption is also stagnant. The GVA which is the key indicator of the final output has also reduced from 7.9% to 6.1 % which is again drastically low. The main question lying ahead is that whether enough jobs are getting created in the economy or not. The recent reform of allowing FDI in single brand retail would set the ball rolling for the international retail giants to set up their shops in India and thus attract huge foreign capital. This would also to some extent create jobs for the largely section of the society and thus contribute in the GDP growth rate. The Government went ahead and borrowed Rs. 50,000 crore between January to March 2018 since the Private sector expenditure is not picking up. This would affect the Fiscal deficit math to some extent but it is very important to pick up the economic activity and thus create the momentum which has been slowed down due to demonetization and GST rollout.

The key trigger for the economy would be the next Budget which is set of February 1st and the next RBI Monetary policy would set the tone of the markets. The budget has to focus on how to create more income for the rural sector and farm sector which is the still the major contributor in the economy. The year 2017 has been very good for equity markets which is the benchmark index SENSEX giving 27 % returns.

Dr. Aditya SrinivasChief Operating Officer

& Chief Economist

On the BBF Front:

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6 Dec6 Dec7 Dec7 Dec11 Dec12 Dec13 Dec14 Dec15 Dec15 Dec18 Dec19 Dec19 Dec20 Dec20 Dec21 Dec21 Dec22 Dec26 Dec27 Dec27 Dec

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Date InstitutionsSIES College of Commerce and Economics (Batch 1-2)N.G. Bedekar College of CommerceGuru Nanak College of Arts, Science & CommerceN.G. Bedekar College of Commerce (Batch 1-2)Institute of Business Studies & Research (IBSAR)N.G. Bedekar College of Commerce (Batch 1-2)Maniben Nanavati Women's CollegeManiben Nanavati Women's CollegeManohar Joshi CollegeGuru Nanak College of Arts, Science & CommerceRoyal College of Science, Arts and CommerceRoyal College of Science, Arts and CommerceDr. G.D. Pol Foundation YMT College of ManagementBunt Sangha CollegeBrihan Maharashtra College of CommerceRoyal College of Science, Arts and CommerceBrihan Maharashtra College of CommerceRoyal College of Science, Arts and CommerceDr. G.D. Pol Foundation YMT College of ManagementICAI (Institute of Charterted Accountants of India)Dr. G.D. Pol Foundation YMT College of ManagementEknath B Madhavi Senior College of Arts Science & CommerceN.G. Bedekar College of Commerce

The year 2017 has been very good for equity markets which is the benchmark index SENSEX giving 27 %

returns.

The World Economy is showing signs of recovery with the world economy likely to grow near to 4 % which would be highest from 2010. The World Bank has forecasted the following growth rates.

From the above table it looks like the world and major economies are set to improve and this would also be challenge for India to attract foreign capital.

2015-16GVA base pricePrivate final consumptionGovt. final consumptionGross capital formation

7.958

10.329.3

6.658.811.727.1

6.158.811.926.4

2016-17 2017-18 2017WorldUSAEurozoneChinaIndiaJapan

3.62.32.36.86.31.6

3.72.62.16.56.71.3

3.62.21.86.27.4

1

2018 2019Countries

FEBRUARY 2018 CONTENTSFEBRUARY 2018 CONTENTS


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16 ASIA-PACIFIC MARKETS MONTHLYHIGHLIGHTS AND INSIGHTS

REGULATORY REFORM IN THEFINANCIAL SECTOR: ISSUESAND DETERRENTS

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06 BULLS & BEARS: COMPLIANCEOBLIGATIONS OF STOCK BROKER -A CHANGING TREND

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BULLS & BEARSBulls & Bears

COMPLIANCE OBLIGATIONSOF STOCK BROKER -A CHANGING TREND

Sumit Agrawal & Vaneesa AgrawalSuvan Law Advisors

The Broker’s role in securities market is to act as a point of contact for clients seeking to buy or sell financial or non-

financial products.

Stockbroker : What is a million years like to you?God : Like one second.Stockbroker : What is a million dollars like to you?God : Like one penny.Stockbroker : Can I have a penny?God : Just a second ...

IntroductionThe Broker’s role in securities market is to act as a point of contact for clients seeking to buy or sell financial or non-financial products. Considering the sensitivity of the information that the broker is aware of, there is a need for the broker to remain completely independent and non-interested in the transaction. That’s why they are popularly called “The Gatekeepers”. Thus, there exist regulatory restraints that require the broker to act as a pure intermediary, taking no positions or dealing risks in the financial markets. In light of the responsibilities that stock brokers must perform, the SEBI considers the integrity, reputation & character of the applicant, the absence of convictions & restraining orders, the absence of categorization as a willful defaulter, as well as the competence displayed by the applicant (taking into consideration financial solvency and net worth) to determine the suitability of an applicant to be an intermediary. Law is fairly well provided in Sch. II, SEBI (Intermediaries) Regulations, 2008 and SEBI (Stock Brokers and Sub brokers) Regulations, 2008. The purpose of this piece to highlight the compliances in general and recent judicial trend on expected compliance.

Code of ConductStockbrokers must have and adhere to a code of conduct so that they meet the needs of their client and to ensure smooth functioning of the securities market. This code of conduct, a performa of which SEBI provides, states that brokers shall:1. Maintain high standards of integrity, promptitude and fairness

in the conduct of all his business.2. Act with due skill, care and diligence in the conduct of all his

business.3. Not indulge in manipulative, fraudulent or deceptive

transactions or schemes or spread rumors with a view to distorting market equilibrium or making personal gains.

4. Not indulge in any act detrimental to the investor’s interest or which leads to interference with the fair and smooth functioning of the market.

5. Involve himself in excessive speculative business in the market beyond reasonable levels not commensurate with his financial soundness.

6. Abide by all the provisions of the Act and the rules, regulations issued by the Government, the Board and the Stock Exchange from time to time as may be applicable to him.

7. Faithfully execute the orders for buying and selling of securities at the best available market price and not refuse to deal with a Small Investor merely on the ground of the volume of business involved.

8. Promptly inform his client about the execution or non-execution of an order, and make prompt payment in respect of securities sold and arrange for prompt delivery of securities purchased by clients.

9. Issue without delay to his client or client of the sub-broker, a contract note for all transactions in the form specified by the stock exchange.

10. Not disclose or discuss with any other person or make improper use of the details of personal investments and other information of a confidential nature of the client which he comes to know in his business relationship.

11. Not encourage sales or purchases of securities with the sole object of generating brokerage or commission.

12. Not furnish false or misleading quotations or give any other false or misleading advice or information to the clients with a view of inducing him to do business in particular securities and enabling himself to earn brokerage or commission thereby.

13. Not deal or transact business knowingly, directly or indirectly or execute an order for a client who has failed to carry out his commitments in relation to securities with another stock-broker.

14. Disclose whether he is acting as a principal or as an agent and shall ensure at the same time that no conflict of interest arises between him and the client. In the event of a conflict of interest, he shall inform the client accordingly and shall not seek to gain a direct or indirect personal advantage from the situation and shall not consider clients’ interest inferior to his own.

15. Not make a recommendation to any client who might be expected to rely thereon to acquire, dispose of, or retain any securities unless he has reasonable grounds for believing that the recommendation is suitable for such a client.

16. Not render, directly or indirectly, any investment advice about any security in the publicly accessible media, whether real-time or non-real-time, unless a disclosure of his interest including the interest of his dependent family members and the employer including their long or short position in the said security has been made, while rendering such advice.


BULLS & BEARSBulls & Bears 17. Have adequately trained staff and arrangements to render fair,

prompt and competence services to his clients.18. Co-operate with the other contracting party in comparing

unmatched transactions.19. Not knowingly and willfully deliver documents which

constitute bad delivery and shall co-operate with other contracting party for prompt replacement of documents which are declared as bad delivery.

20. Extend fullest co-operation to other stock-brokers in protecting the interests of his clients regarding their rights related to such securities.

21. Carry out his transactions with other stock-brokers and shall comply with his obligations in completing the settlement of transactions with them.

22. Shall not advertise his business publicly unless permitted by the stock exchange.

23. Shall not resort to unfair means of inducing clients from other stock-brokers.

24. Not neglect or fail or refuse to submit the required returns and not make any false or misleading statement on any returns required to be submitted to the Board and the stock exchange.

Sub-BrokersSub-brokers while themselves not trading members of a stock exchange, act as agent to trading member and assist the clients of the trading members to make trades. In order to ensure the scope of the sub-brokers responsibility and to determine his role, the Sub-broker shall enter into an agreement with the stock-broker for specifying the scope of his authority and responsibilities. Thus, Sub-brokers also have to abide by the above code of conduct. However, they also have additional duties vis-à-vis stock brokers which include co-operation with his broker in comparing unmatched transactions, never knowingly or willfully delivering documents which would constitute bad delivery, co-operation with other contracting party for prompt replacement of documents which are declared as bad delivery, co-operation to his stock-broker in protecting the interests of their clients regarding their rights to dividends, right or bonus shares, or any other rights relatable to such securities. Sub-brokers shall also not fail to carry out his stock-broking transactions with his brokeror to meet his business liabilities or show negligence in completing the settlement of transactions with them. Furthermore, they shall not neglect or fail or refuse to submit to the SEBI or the stock exchange with which he is registered, such books, special returns, correspondence, documents, and papers or any part thereof as may be required.

Maintenance of books of records and inspectionSEBI, by way of the same Regulations, aims to ensure proper documentation of the trades performed on behalf of investors by the stock-broker.Both the stock broker and sub-broker have an obligation to submit certain books of accounts and records so that they are available for inspection on the request of client or when demanded by authorities such as SEBI for a minimum period of 5 years. In light of the same, the sub-brokers have the responsibility to maintain the Register of transactions (saudabook), ledgers (client’s and general), journals, cash books, bank pass book, margin deposit book, the client’s account opening form as well as all documents which contain, inter alia, particulars of securities received and delivered in physical form and the statement of account and other records relating to receipt and delivery of

securities provided by the depository participants in respect of dematerialized securities.

In addition the above, the stock-broker has the responsibility to ensure that a few records are maintained and are available for inspection. These include the members’ contract books showing details of all contracts entered into by him with other members of the same exchange or counterfoils or duplicates of memos of confirmation issued to such other members, counterfoils or duplicates of contract notes issued to clients, written consent of clients in respect of contracts entered into as principals, registers of accounts of sub-brokers, as well as the agreement with a sub-broker specifying the scope of authority, and responsibilities of the Stock Broker and such Sub-broker.

It shall be the duty of every director, proprietor, partner, officer and employee of the stock-broker, who is being inspected, to produce to the inspecting authority such books, accounts and other documents in his custody or control and furnish him with the statements and information relating to the transactions in securities market within such time as the said officer may require. the inspecting authority to have reasonable access to the premises occupied by such stock-broker or by any other person on his behalf and also extend reasonable facility for examining any books, records, documents and computer data in the possession of the stock-broker or any other person and also provide copies of documents or other materials which, in the opinion of the inspecting authority are relevant. The stock-broker shall also give all assistance that he is reasonably expected to give in connection to the inspection.

Norms regarding unauthorized trading

Brokers are supposed to only perform trades on the request of the client and strictly obey the directions of the client in the purchase or sale of securities. To prevent unscrupulous brokers from making unauthorized trades in order to make personal profit, the SEBI mandated that the brokers shall execute trades of clients only after keeping evidence of the client placing such order. Such evidence could be various forms which include physical record (written & signed by client, telephone recording, email (from an authorized email ID), log of internet transactions, or any other legally verifiable record. (Refer SEBI Circular dated 26thSeptember 2017)

We had written the rationale and challenges ahead for Brokers in complying with the same in our earlier columns of BSE Brokers Forum Magazine.

Such evidence must be kept on record for minimum period for which the arbitration accepts investor complaints as notified from time to time, currently 3 years. However in cases where dispute has been raised, such records shall be kept till final resolution of the dispute. If SEBI desires that specific records be preserved then such records shall be kept till further intimation by SEBI. In case of a dispute, it shall be the burden of the broker to produce the same and justify failure to produce such evidence. Such failure may only be condoned in exceptional cases such as technical failure depending on merit of the same, other appropriate evidences like post trade confirmation by client, receipt of payment of funds/securities by client in respect of disputed trade etc, shall also be considered. (SEBI Circular CIR/HO/MIRSD/MIRSD2/CIR/P/2017/124, dated 30th November 2017)


BULLS & BEARSBulls & Bears

(Authors are founders, Suvan Law Advisors and ex-SEBI Officers. Views are personal. They can be reached at [email protected] )

Commercial, Litigation & Dispute Resolution, and Legislative & Rulemaking. The Firm has expertise and in-depth knowledge of the regulatory approach having former Regulatory Officers as Partners. www.suvanlaw.com

Suvan Law Advisors is a niche law firm based out of Nariman Point, Mumbai. The Firm’s focus areas are Capital & Commodity Markets, Compliance & Investigation, Financial Regulatory Practice, General Corporate

Various regulations issued by SEBI including inter alia the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 emphasize on the importance of the fiduciary duty owed by intermediaries such as brokers/ sub brokers towards the clients. The Apex Court has also held in the matter of Pooja Menghanivs Securities and Exchange Board of India, (Civil Appeal No. 11195-11196 of 2014) that “there is no dispute as to the fact that a fiduciary must act in utmost good faith; he should not act for his own benefit or benefit of any third party without the informed consent of his client. The essential irreducible core of fiduciary duty is the duty of loyalty.”

Norms regarding trading between brokers Brokers trading through large number of brokers/sub brokers between for their proprietary trades as well as trades on behalf of clients raises serious issues of regulatory concerns including taking excessive exposure, executing pro account trading from multiple locations, possibility of over leveraging and default etc. Therefore, in order to address these concerns SEBI has mandated that Stock exchanges shall ensure that brokers of an exchange can deal with only one broker of another exchange for proprietary trading (after intimating the names of such broker to his parent stock exchange), brokers be affiliated to only one stock broker of one stock exchange, and a broker of an exchange cannot deal with brokers of the same exchange either for proprietary trading or for trading on behalf of clients, except with the prior permission of the exchange (the stock exchanges while giving such permission, shall consider the reasons stated by the brokers and after carrying out due diligence and then allow the same).

Compliance OfficerIn order to ensure that above regulations and norms are followed, every stock broker shall appoint a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions, etc., issued by the Board or the Central Government and for redressal of investors’ grievances. Thus, officer shall immediately and independently report to SEBI any non-compliance observed by him.

Consequences if Compliance Checklist remains Un-Complied WithA fact well known to the community of brokers/ sub-brokers which has been reaffirmed by the Hon’ble Securities Appellate Tribunal, the appellate body in respect of the orders passed by SEBI, in an order passed on 3rd March, 2017 in the matter of Pradeep A. Ramnani v. SEBI, where the appellant sub-broker alleged that he did not know about the pre-requisite of procuring a NSE’s Certification in financial market (NCFM) for the purpose of becoming an authorized person and/or for executing trades in the Futures & Options segment, upheld the penalty imposed on him by SEBI and observed that since the appellant was expected to have prior knowledge about the relevant rules and regulations, he cannot take the defence of ignorance.

SAT by an order dated 8th March, 2017 upheld the SEBI order suspending the certificate of registration of the appellant stock broker for a period of one month in the case of Khandwala Securities Ltd. v. SEBI. The Hon’ble Tribunal held that placing high quantity orders repeatedly at prices far away from the market prices constituted violation of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995.

Flak to SEBI for being Non-UniformIn the matter of Integrated Master Securities Private Limited v SEBI, dated June 6, 2017 SAT held that SEBI’s does not stick to a uniform approach in dealing with the non-compliance.SEBI has accorded varying punishments in respect of similar kinds of offences. In some cases involving certain allegations, the accused are let off with a warning, in some other cases they are restrained from accepting fresh clients for a period ranging from one month to six months and in some extreme cases, particularly, where the brokers were involved in self-trades on proprietary account, suspension of the license for six months were ordered.

Concluding ObservationsSEBI views stringent registration requirements for stock-brokers as a core protection for investors. Recently there is a trend of multiple enforcements actions against brokers and sub-brokers that engaged in the business of effecting transactions in securities but failed to carry due diligence or aided and abetted a client in executing a fraudulent and unfair trade practices in securities market.

Several of the SEBI’s insider trading cases as well as actions for front running involved brokers who came into possession of material nonpublic information and traded on or tipped the information to others. SEBI has also charged brokers with failing to enforce policies and procedures to prevent the misuse or side-stepped the red flag. In most cases, SEBI has to show some level of culpability when it brings an action against a broker -typically a lack of reasonable care-but that has not proven to be a significant obstacle. SEBI often builds the case around data for volume and concentration of trades or connection based on proprietary trades or off-market trades. The duty of best execution, and numerous technical rules related to areas ranging from fiduciary duty to failure to observe standards, provide the SEBI a huge arsenal of enforcement tools that it regularly uses in actions against brokers.

9

As we continue the discussion on regulatory reform this article for Econ Buzz provides an overview about some of the reasons and factors that have delayed the impending changes in financial regulations. Undeniably after the crisis current imperatives make it almost imminent that regulatory change will occur but it is important that the nature and pace of financial reform is not too little and too late.

Recall that the crisis was the culmination of a buildup of systemic risk that had begun years before its occurrence the indications of which were overlooked as was the fundamental fact that financial markets do not have a self correcting mechanism. On deeper scrutiny as has become rather obvious over the past few years it is the underlying politics of reform as it worked in certain advanced nations that resulted in relaxing even the most necessary public and private automatic stabilizers. Numerous empirical analyses about the crisis and the underpinnings of the financial system that preceded it underscore that the lapses in regulation were not all inadvertent. As the global financial development report (2012) says “Rather, the evidence indicates that regulatory agencies were aware of the growing fragility of the financial system associated with their policies during the decade before the crisis, yet they chose (under pressure from the industry and politicians) not to modify those policies....”

Distorted incentives resulted from the interplay between deeply entrenched vested interests, financial engineering that worked toward creating complex and almost inscrutable `financial instruments that enabled risk transfer instead of risk management. So be it poorly undertaken credit ratings, moral hazard that stemmed from `too big to fail policies, weaknesses in credit appraisals of borrowers and other such weaknesses it is undeniable that these asymmetries which had riddled the financial system (certainly by the time the crisis occurred) were inextricably linked to the way regulatory mechanisms functioned or didn’t.“

Some of the regulations had been

adopted in the aftermath of the Great

Depression. They should have been

adapted to the evolving markets, not

eliminated.

REGULATORY REFORM IN THE FINANCIALSECTOR: ISSUES AND DETERRENTS

By Professor Piya Mahtaney” “Economist / Author


INSIGHTS - ECONBUZINSIGHTS - ECONBUZZ

The Political economy of reformThe political economy of reform is an intersection of multivariate interests and decoding it becomes difficult in an increasingly interdependent world wrought with anomalies, trade-offs and uncertainty. Vested interests exist and always will but present circumstances define an inflexion point and regardless of ideological orientation which stokes protectionism that rears its head from time to time the overriding need to harness potential, step up economic progress and of course expand markets will spearhead financial reform Equally true however is that there is considerable empirical evidence about the way the political economy of reform works, the influence that it wields in deterring reform initiatives and the circumstances which limit it According to a working paper (American Economic Review, March 2005) by Abaid and Mody about financial reform,.....“The episodes themselves leading to both liberalizations and reversals-are embedded in a long-term process that, in the past quarter century has trended toward greater liberalization....” There is a surfeit of empirical evidence that demonstrate the kind of circumstances that will make it the inception and consistent financial reform

As Adair Turner says in a RBI lecture (2010), “the current crisis may thus be considered a direct consequence of these ideas which supported the elimination of many regulations that had enhanced the ability of markets to function efficiently. Some of the regulations had been adopted in the aftermath of the Great Depression. They should have been adapted to the evolving markets, not eliminated. Moreover, the changing economy the creation of new financial instruments-required new regulations” Over two decades ago the outcomes of systemic deficiencies in the global financial system had manifested repeatedly as regional crises one such instance being the Asian economic crisis (1997). However the insights that this brought with it empirically were overlooked at the time and this in conjunction with the blatantly flawed assumptions that seem to have guided the course that deregulation took in advanced nations particularly the U.S reflected the influence of vested interests had in the ambit of policy making. The instruments of any country’s financial system can be manipulated with greater ease and guile by special interest groups through the weak enforcement of investors’ rights; a lack of transparency and unclear demarcations between public and private interests. This is a fact that is reiterated by the UN commission report about reform (2009) which says, “while ideas matter, so do interests: the current regulatory regime may have been affected more by the influence of certain special interests than the merits of theoretical arguments. S o m e h o w w e l l s u b s t a n t i a t e d apprehensions and useful empirical insights were cast aside and a partial process of financial liberalization that was buttressed by a dominant `intellectual ideology’ was upheld by powerful lobbying. These special interests may, in particular, have found those ideas that supported their positions particularly appealing and did what they could to promote them.” Although more sophisticated financial systems are not raven with the kind of inconsistencies that prevail in less developed nations the precedent years have demonstrated that the collusion of policy and vested interests

is quite apparent even in some of the more advanced nations. Therefore what we have in some of the developed nations is symptomatic of certain features that underpin the political economy of reform, a short exposition of which would be useful at this point:


Piya Mahtaney completed her second Master’s in Development Economics from Leicester University in England she embarked on a career in journalism with the Times of India. She was an assistant editor in Metropolis on Saturday, subsequent to which she joined as senior feature writer in Economic Times. As an economist that reported, analyzed and wrote on a wide range of socio-economic issues, writing a book about economic development and the emerging trends of globalisation seemed almost inevitable

The books that she has authored are as follows:• India China and Globalization (2nd ed), Palgrave

Macmillan (England), December 2014• Globalization and Sustainable Economic

Development, Palgrave Macmillan (U.S), August 1st 2013

• Institute of South East Asian Studies (Singapore) published an edition (August 2010) of my book India China and Globalisation.

• The first edition of India China and Globalisation was published by Palgrave Macmillan (England, 2007)

• Globalisation Con Game or Reality was published by Alchemy Publishers, India (2004) 2004.

• The first book titled Economic Con Game, Development fact or Fiction was published by Pelanduk Publications (Malaysia) in 2002.

INSIGHTS - ECONBUZZINSIGHTS - ECONBUZZ

inevitable that this fact cannot be scuttled aside for long with quick fix measures

In this context an important finding by Abaid and Mody’s study was that reforms are more probable in an intermediate range of liberalization which includes those countries that are partially repressed or largely liberalized and it observes that, “The inverse U-shaped relationship between the level of financial liberalization and the incidence of reform is consistent with the idea that “learning” creates a self-sustaining dynamic in the reform process.” Presently there are only a handful of countries that can be described as completely repressed and as a matter of fact most nations find themselves at different stages of financial liberalization. Although the pace of liberalization will be much slower now than it was during the pre crisis era the fact remains that the initializing the process of reform will not be as tenuous as it would otherwise have been if countries were closed economies.

Conclusion Two important empirical insights that do come across from the way financial systems have functioned is firstly deregulation does not dispense with the need for regulatory reform and there is no debate about the role that the government has in setting out the framework for regulatory change. Secondly the unequivocal need for financial reform applies across the board regardless of levels of development, the obvious difference being that the thrust of financial reform in developed nations will vary considerably from that in developing nations. In the former it is fixing regulatory arbitrage which has by now become a deeply embedded feature of the financial system that will be at the core of regulatory change. For developing and less developing nations in a

sense the litmus test of regulation will be the impact it has on financial development, however the crux of financial reform for almost every country is to put into place an effective and coherent institutional infrastructure that establishes market discipline and does so without crowding out financial development, investment and economic growth. So far this has not been accomplished.

In the larger context reform is closely interlinked with economic liberalism, the course that this would take in a global context that seems to be leaning towards protectionism is an important question. In line with this the next article for Econ Buzz will begin a series about liberalism and the factors that are likely to shape its evolution and impact during ensuing years.

likely and those which would discourage it. Abaid and Mody enumerate three sources of reforms or sets of factors which trigger the same- firstly the occurrence of a discrete events that change ̀ the balance of decision making power’ such as shocks, change of government or the influence exercised by international financial institutions, the second trigger for reform is the learning that arises from a country ’s economic experience and enables it to arrive at a better assessment of existent policy regimes. In the working paper this second source is described as `discovery and the consequent realignments in relationships’ and the third is ideology of the ruling government. For most nations across the world the crisis which occurred in 2008 was a shock, certainly the severity and magnitude of its outcomes was not something that had been anticipated even by those who discerned there might be a cyclical downturn. In addition in terms of the `learning’ and fresh insights that the crisis brought it did compel a rethink globally about the divergence between how financial systems function and how they need to in order to be better aligned with emerging imperatives challenges.

Interestingly the flip side of the political economy of reform is that the play of politics much as it impacts economics is also influenced considerably by prevalent economic imperatives and in consonance with this what we see happening globally is the beginning of a convergence of political interests with long term economic concerns. Although invariably short term, myopic populist measures are used to further political ends, equally significant is the fact that politics is inextricably linked with the delivery of economic outcomes. In some countries the manifestation of this fact will occur sooner than in others but it is

Ved Malla is Associate Director, Product Management at S&P BSE Indices, responsible for managing Equity and Strategy Indices in India and its neighboring countries. His objective is to expand business in the region through identifying local market trends and ensuring new products and services are aligned to the market’s needs. In addition, he is responsible for compliance and corporate secretarial work.

He has over 11 years of experience in the financial services industry. Prior to joining S&P BSE Indices, he worked with the two leading Indian stock exchanges (NSE and BSE) for about 10 years, playing an integral role in the growth of their index and market data productions. Previously, Ved was associated with Birla Sunlife Mutual Fund, where he was part of the compliance department.

He has a Master of Business Administration in Marketing from the Narsee Monjee Institute of Management Studies (NMIMS), Mumbai. He also received his Company Secretary certificate from the Institute of Company Secretaries of India.

he S&P BSE SENSEX Series comprises three indices, namely the S&P BSE SENSEX, the S&P BSE SENSEX 50, and the S&P TBSE SENSEX Next 50.The S&P BSE SENSEX is the oldest and

the most-tracked index in India and comprises 30 large, well-established, and financially sound companies within the S&P BSE 100.The S&P BSE SENSEX 50 is designed to measure 50 of the largest and most liquid companies within the S&P BSE 100.The S&P BSE SENSEX Next 50 is designed to measure 50 of the largest and most liquid companies within the S&P BSE 100 that are not members of the S&P BSE SENSEX 50.

Let us now compare the returns of the S&P BSE SENSEX, the S&P BSE SENSEX 50, and the S&P BSE SENSEX Next 50 for this calendar year, as of Dec. 31, 2017.

INSIGHTSINSIGHTS


The S&P BSE SENSEX is the oldest and the most-tracked index in India

and comprises 30 large, well-established, and financially sound

companies within the S&P BSE 100.

BULL RUN FOR THE S&P BSESENSEX SERIES IN 2017

By Ved MallaAssociate Director, Product ManagementS&P BSE Indices

In Exhibit 2, we see the total return index level chart for the S&P BSE SENSEX, the S&P BSE SENSEX 50, and the S&P BSE SENSEX Next 50. The S&P BSE SENSEX Next 50 consistently outperformed the S&P BSE SENSEX and S&P BSE SENSEX 50 during the 12-month period ending Dec. 31, 2017.

In Exhibit 1, we see that in the 12-month period ending Dec. 31, 2017, the absolute returns of the S&P BSE SENSEX, S&P BSE SENSEX 50, and S&P BSE SENSEX Next 50 were 29.56%, 31.96%, and40.90%, respectively.

DISCLAIMER: The S&P BSE Indices (the “Indices”) are published by Asia Index Private Limited (“AIPL”), which is a joint venture among affiliates of S&P Dow Jones Indices LLC (“S&P DJI”) and BSE Limited (“BSE”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. BSE® and SENSEX® are registered trademarks of BSE. These trademarks have been licensed to AIPL.

Past performance of an Index is no guarantee of future results. AIPL, S&P DJI and BSE (the “AIPL Cmpanies”) make no representation or warranty that investment products based on any Index will accurately track index performance or provide positive investment returns. The AIPL Companies do not make investment recommendations and do not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that seeks to provide an investment return based on the performance of any Index. Performance returns for an Index do not reflect payment of charges or fees an investor may pay for investable instruments. AIPL Companies receive compensation in connection with licensing Indices to third parties. AIPL Companies. For more information on any of Indices please visit http://www.asiaindex.co.in/.

Source: S&P Dow Jones Indices LLC. Data from Dec. 31, 2016, to Dec. 31, 2017. Past performance is no guarantee of future results. Table is provided for illustrative purposes and reflects hypothetical historical performance. The S&P BSE SENSEX Next 50 was launched on Feb. 27, 2017.

Exhibit 1: Index Absolute Returns

INDEXINDEX VALUEON DEC. 31,

2016

INDEX VALUEON DEC. 31,

2016

ABSOLUTERETURN

(%)

S&P BSE SENSEX (TR)S&P BSE SENSEX 50 (TR)S&P BSE SENSEX Next 50 (TR)

37,4729,80531,246

48,55012,93944,027

29.5631.9640.90

Source: S&P Dow Jones Indices LLC. Data from Dec. 31, 2016, to Dec. 31, 2017. Past performance is no guarantee of future results. Chart is provided for illustrative purposes and reflects hypothetical historical performance. The S&P BSE SENSEX Next 50 was launched on Feb. 27, 2017.

140

135

130

125

120

115

110

105

100

S&P BSE SENSEX

S&P BSE SENSEX 50

S&P BSE SENSEX Next 50

Tota

l Ret

urns

Ind

ex L

evel

31-D

ec-2

016

31-J

an-2

017

28-F

eb-2

017

31-M

ar-2

017

30-A

pr-2

017

31-M

ay-2

017

30-J

un-2

017

31-J

ul-20

17

31-A

ug-2

017

30-S

ep-2

017

31-O

ct-2

017

30-N

ov-2

017

31-D

ec-2

017

Exhibit 2: Index Total Returns

Exhibit 3: Sector Breakdown of the S&P BSE SENSEX, S&P BSE SENSEX 50, and S&P BSE SENSEX Next 50

37%

12% 12%

11%

10%6%

4%

3%3%

2%

36%

12%11% 11%

9%

6%4% 3%

5%

2%

19%

7%

13% 13%13%

9%

3%

21%

2%1%

40%

35%

30%

25%

20%

15%

10%

5%

0%

S&P BSE SENSEX S&P BSE SENSEX 50 S&P BSE SENSEX Next 50

Sec

tor

Com

posi

tion

Finan

cials

Ener

gy

Infor

mat

ion Te

chno

logy

Consu

mer

Disc

retio

nary

Consu

mer

Sta

ples

Indus

trials

Health

Car

e

Utilitie

s

Mat

erial

s

Telec

omm

unica

tion..

Real E

stat

e

Source: S&P Dow Jones Indices LLC. Data as on Dec. 31, 2017. Chart is provided for illustrative purposes.

From Exhibit 3, we can see that as of Dec. 31, 2017,the financial sector had the highest weight in the S&P BSE SENSEX Series, while the real estate sector had the lowest weight.

For the year ending Dec. 31, 2017, we can state that the S&P BSE SENSEX Series has shown promising returns. The S&P BSE SENSEX added over 14 lakh crores of market cap during this period. We can conclude by saying that 2017 has been a great year for the S&P BSE SENSEX Series, as the indices have given outstanding returns.

Heckyl has developed an indicator to measure Sensex

companies' revenue visibility through analysis of growth-oriented news flow

during the quarter.

HECKYL COMPANY GROWTH INDICATORCORRECTLY PREDICTS TREND FOR

SENSEX COS AGGREGATE REVENUES

By Heckyl Technologieswww.heckyl.com


INSIGHTSINSIGHTS

during the second quarter (Point 7 highlighted chart 1) indicates that the momentum in revenue growth for Sensex companies likely to maintain for the December 2017 quarter. However, a decline in Heckyl Company Growth Indicator during December 2017 quarter (Point 8 highlighted in chart 1) showed that Sensex companies' aggregate revenues may fall in March 2018 quarter on a sequential basis.

Heckyl Technologies is a fin-tech company bringing real-time data analytics for the financial markets. Using its proprietary technology Heckyl brings real-time news, information and data from companies, businesses and global markets to offer retail and institutional traders with actionable ready-to-use intelligence in a fast-moving market.

Heckyl's flagship product is FiND or Financial in News and Data, an alternative data platform that collects, organizes and performs deep-dive analytics on structured and unstructured data sets to provide unique insights into companies, industries, and countries. www.heckyl.com/ [email protected]

eckyl has developed an indicator to measure Sensex companies' revenue visibility through analysis of Hgrowth-oriented news flow during the quarter. Our

analysis showed that the movement in growth-oriented news flow and its underlying sentiment for the particular quarter can accordingly move Sensex companies' aggregate revenues in the subsequent quarter. Our news study has indicated a rise in Sensex companies' aggregate revenues for the third quarter of the financial year 2018.

We have analyzed nearly 60,000 growth-oriented news items for Sensex companies for the past 10-quarters. We identified 15 growth-oriented news categories which can have the potential impact on the company's future revenue growth. Some of the growth-oriented news categories are contracts, expansion, product launch, M&A, fund-raising and business transactions. Based on the news volume and sentiment for these growth-oriented categories, we have prepared Heckyl Company Growth Indicator for Sensex companies.

Our back-testing has shown a strong positive 1-quarter lead-lag correlation (0.79) between Heckyl Company Growth Indicator (leading indicator) and aggregate quarterly net sales (lagging indicator) for Sensex companies for September 2015 to September 2017 period. In other words, Heckyl Growth Indicator for September 2017 quarter can act as a leading indicator for Sensex companies' aggregate net sales for December 2017 quarter.

Heckyl Company Growth Indicator has correctly predicted the trend for Sensex companies' aggregate net sales for the past 6 out of 7 quarters (Chart 1).

In our view, such deep-dive analytics on news data can capture corporate growth activities and its underlying sentiment. Most importantly, this can help in predicting likely revenue growth for both the index companies and the sector as a whole.

For September 2017 quarter, Heckyl Company Growth Indicator stood at 3.10, up from 3.03 for the preceding quarter. A further rise in Heckyl Company Growth Indicator

SWIFT FOR FINANCIAL INDUSTRY

By Jayesh ShahPromoter, Prism Cybersoft Private Limited

TECH-SPEAKTECH-SPEAK

SWIFT stands for the Society for Wor ldwide In te rbank F inanc ia l Telecommunications. It is a messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes.As the financial industry is growing more and more mature, there is an increasing need to use the technology to improve efficiency, time to transact and reduce the associated costs and risks. Today much of the information exchange between clients and counterparties is done electronically. This made it imperative to develop messaging standards that multiple institutions may follow.

SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.

Corporates face considerable challenges in coordinating the many bank accounts and multiple bank communication channels that are needed for effective treasury management. These challenges range from the high cost of multiple bank interfaces, complex and varied security and contingency arrangements, and an inability to view cash positions across your global bank network. These issues (among others) introduce excess costs, as well as process and liquidity inefficiencies to cash management and related financial operations.

Using SWIFT, companies are able to consolidate their banking connectivity and leverage standardized formats and features common to most banks. This

a l l o w s y o u t o s t r e a m l i n e communications, normalize formats and create a more efficient payment environment.

Through shared resources and capital, SWIFT functions with the objective of enabling harmonised exchange of structured financial information between domestic participants in the domestic Indian community, thereby

a) reducing costs and risks,b) expanding the reach of automated

and secure exchange of information across the industry,

c) e n a b l i n g n e w i n s t r u m e n t s , opportunities and markets for the industry.

SWIFT is actually not a standard per se; rather, it's an organization that operates a proprietary exchange network that utilizes a set of ISO messaging standards. SWIFT priorities are defined and guided by the financial industry and its participants. SWIFT adopts a consultative approach, ensuring key stakeholder views are systematically sought and reflected in its services. The

SWIFT enables its users to exchange

automated, standardised

financial information securely and reliably,

thereby lowering costs, reducing

operational risk and eliminating operational

inefficiencies.

SWIFT community includes banks, brokers/dealers and investment managers, as well as their market infrastructures in payments, securities, treasury and trade. The standard is exhaustively used as a back office messaging standard for settlement, corporate actions and fund transfers.

Furthermore, SWIFT strives to be t r a n s p a r e n t , d e p e n d a b l e a n d accountable and take responsibility and o w n e r s h i p t o d e l i v e r o n o u r commitments to you. We strive to be disciplined in our planning and delivery so that you in turn can plan and execute with confidence.

The Indian financial community is comprised of a variety of participants, consisting of regulators, government agencies, banks, non-banking financial institutions, payments and securities market infrastructures, exchanges, repositories, corporate and retail customers, and their respective service providers.

SWIFT follows MT and MX standards mainly with MT messages following, FIN syntax and MX standards following XML syntax. To ensure timely execution of safe and secure transactions in this ecosystem, SWIFT provides a highly reliable, secure and efficient financial messaging platform for the domestic market. The messaging platform enables the structured exchange of information with the following key features:

• Message types:» Real-time and bulk messages» File transfer of structured and unstructured information

• Security:» Role-based access control» Maker-checker controls


TECH-SPEAKTECH-SPEAK

enable filtering based on region, country, message types, and related parameters. This service is very helpful for Corporates who require complex reports.

• Compliance Services: Aimed at services around financial crime compliance, SWIFT offers reporting and utilities like Know Your Customer (KYC), sanctionsand Anti-Money Laundering (AML).

• Messaging, Connectivity, and Software Solutions: The core of SWIFT business resides in providing a secure, reliable, and scalable network for the smooth movement of messages. Through its various messaging hubs, software, and network connections, SWIFT offers multiple products and services which enable its end clients to send and receive transactional messages. Corporates can utilize these services to meet competition and challenges in today’s global market

Building the Business Case for SWIFT for CorporatesIf you are considering SWIFT, the development of a formal business case is r ecommended s ince a cap i ta l investment will be required to install needed techno logy s t ructures . Understanding the potential return on investment and total cost of ownership measured against your most pressing business needs and treasury challenges should be determined.

In addition to examining the costs associated with SWIFT such as r eg i s t r a t i on , connec t i v i t y and messaging, and non-SWIFT related e x p e n s e s ( i n c l u d i n g p r o j e c t management, operations and application integration), it is important to consider benefits that may be difficult to quantify. These cost savings include security (avoidance of fraud and fewer manual


Jayesh Shah holds B.S. and M.S. in Computer Engineering from University of Bridgeport, USA. He has more than 25 years of experience in field of IT.

He promoted Prism in 1996 and as its MD and CEO provides Vision, Direction and also takes care of Strategic Affairs, Marketing and Commercials.

Prism has recently been awarded by STPI & CeBIT INDIA for Best IT Exhibitor of ‘Make in India’ Pavilion at CeBIT India 2014.

errors), compliance (less control points and reduced documentation) and improved control over the payment-initiation process.

Preparing for the Needs of TomorrowCorporates using SWIFT for Corporates will be prepared for tomorrow’s needs as SWIFT readies future applications such as: • ISO 20022 XML messaging, further

standardizing SWIFT messaging • Electronic automated management

of bank accounts (eBAM) and authorizations / permissions, modifications and closings

• Transaction exception handling (exceptions and investigations)

• Automation of investment matching a n d r e c o n c i l i a t i o n b e y o n d moneymarket instruments

As the Indian regulators are encouraging the adoption of global messaging standards like ISO 20022 to bring operational efficiency in Indian securities market, SWIFT India network will help securities participants to automate and standardise their communication including areas but not limited to investment account management, fixed income trade settlement & trade reporting, investment funds subscription & redemption which wil l bring operational efficiency and reduce risk. Aconsistent adoption of international standards and best practices in India with a harmonised approach and a consistent collaboration across the market will bring increased operational efficiency to the industry.

»ensure integrity, authenticity and confidentiality

» Hardware security modules» Support for local Controller of

Cert i f iying Authorit ies (CCA) licensed public key infrastructure (PKI)

• International and domestic standards:

» Support for international ISO 15022 (MT) and ISO 20022 (MX) message formats, including domestic to international message transformation

» Support for local market practices and flows

» Support for local addressing schemes such as the Indian Financial System Codes (IFSC)

• Back-off ice integrat ion for straight-through-processing

» Message transformation» Multiple protocols (including SOAP,

MQ, file transfer, etc)» Custom workflow

Services Offered by SWIFT• Applications: SWIFT connections

enable access to a variety of applications which include real-time instruction matching for treasury and forex transactions, banking market Infrastructure for processing payment instructions between the banks, and securities market infrastructure for processing clearing and settlement instructions for payments, securities, forex, and derivatives transactions. Corporates and participants of financial industry can use these applications for meeting their requirements.

• Business Intell igence: SWIFT provides dashboards and reporting utilities which enable the clients to get a dynamic, real-time view of monitoring the messages, activity, trade flow, and reporting. The reports

3 layers of asymmetric encryption to


Contact Information: If you have any questions relating to the content featured in the publication, please contact [email protected]

• M&A Activity By Country, Sector

• Initial Public Offerings

• Private Equity Investments And Buyouts

• Venture Capital Investments

• Market Attributes: Index Dashboard

Key findings:

By Philip LeeGlobal Head of Proprietary Data Services

ASIA-PACIFIC MARKETSMONTHLY HIGHLIGHTSAND INSIGHTS

Philip Lee is a Director at S&P Global Market Intelligence and globally heads up the Desktop Application Specialist team, based in Hong Kong. He manages a team of data specialists that create Excel models and develop workflow solutions utilizing S&P Global Market Intelligence desktop tools. He has over 11 years of Excel modeling experience with a focus on corporate finance and M&A models.

Philip joined S&P Global Market Intelligence in 2008. Prior to that, he spent 4 years with Banc of America Securities, where he was an Associate in the Technology and Media M&A group. He also spent a year with AGM Partners, focusing on Media M&A advisory and private equity.

Philip holds a BS in Commerce, concentrating in Finance and International Business, from the University of Virginia.

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GLOBAL INSIGHTSGLOBAL INSIGHTS



M&A ACTIVITY IN ASIA PACIFIC: SELECTED COUNTRIESA total of 1,122 M&A transactions with aggregate value of $84.3bn were completed in Asia Pacific in December 2017, with Australia accounting for 38% of the total deal value. Compared to last year, however, aggregate deal volume and deal value are down by 15% and 8%, respectively.

Source: S&P Global Market Intelligence as of Dec 31, 2017. Figures are based on M&A announcement dates. Includes both closed and pending

transactions as well as those without transaction values. Charts are provided for illustrative purposes.

Key Threshold (No. of Deals)

0 - 15

>15 - 72

>72 - 145

>145 - 217

>217 - 290

>290 - 362

No. of Deals and Value by Country (Dec’17)

No. of Deals and Value YTD Activity (17’ vs. 16’)

Country No. of Deals Value of Deals ($USDmm)ChinaJapanAustraliaSouth KoreaIndiaMalaysiaHong KongSingaporeThailandNew ZealandPhilippinesIndonesiaTaiwanVietnam

362166161110825648423020161595

23654.204153.0032123.501978.503692.001434.205667.103664.301627.00428.20205.70201.10433.705038.80

INITIAL PUBLIC OFFERINGS BY COUNTRY

Source: S&P Global Market Intelligence as of Dec 31, 2017. Figures are based on public offerings offer date. Includes all closed transactions.

Tables are provided for illustrative purposes.


0

>0 - 6

>6 - 12

>12 - 17

>17 - 23

>23 - 29

The Asia Pacific region raised $8.3bn in funds across 115 IPOs in December 2017. Relative to last year, the primary market showed strong growth in 2017, with the number and value of IPOs increasing 39% and 6%, respectively.

No. of IPOs and Value by Country (Dec ’17)Country No. of Deals Value of Deals ($USDmm)

ChinaJapanIndiaHong KongAustraliaSouth KoreaThailandVietnamIndonesiaSingaporeMalaysiaNew ZealandPhilippinesTaiwan

292214129886520000

3252.702045.50216.20648.50254.50572.701136.4040.90104.0041.200.000.000.000.00

No. of IPOs and Value YTD Activity (17’ vs. 16’)

No. of deals Value of Deals ($USDmm)

17 YTD 16 YTD YoY Growth 17 YTD 16 YTD YoY Growth

ChinaJapanIndiaHong KongAustraliaSouth KoreaThailandVietnamIndonesiaSingaporeMalaysiaNew ZealandPhilippinesTaiwanTotal

49993

1678690744056263222247

1,131

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16

YoY ComparisonThrough

31-Dec-17

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

28789917380682585151820646

813

74%4%

84%18%13%9%

60%

73%78%10%

0%17%39%

-34%

-67%

44,9265,1317,5542,9212,3406,7823,037

925597

4,5551,843

143458392

74,211

40,8139,1504,1033,5014,1485,2461,257

608917

1,75130943393535

69,742

10%-44%84%

-17%-44%29%

142%52%

-35%160%

-67%-51%

6%

497%

1008%



ChinaJapanAustraliaSouth KoreaIndiaMalaysiaHong KongSingaporeThailandNew ZealandPhilippinesIndonesiaTaiwanVietnamTotal

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

4,3691,7221,5311,1281,224

567577458319233117207125139

12,716

5,7401,7541,9561,2221,155

594651480344319141317149204

15,026

-24%-2%

-27%-17%-35%

-15%

-22%-8%6%

-5%-11%-5%-7%

-16%-32%

323,49746,336

120,27254,97732,96219,38758,99256,54113,4163,0716,5604,4267,3286,984

754,748

412,45066,40992,69950,94041,93210,87256,12836,7969,5826,1495,5308,142

14,0634,563

816,258

-22%

30%8%

-50%19%

-46%

53%-8%

-30%

-21%78%5%

54%40%

-48%




0

>0 - 8

>8 - 16

>16 - 23

>23 - 31

>31 - 39

Source: S&P Global Market Intelligence as of Dec 31, 2017. Figures are based on M&A announcement dates. Includes both closed and pending

transactions as well as those without transaction values. Tables are provided for illustrative purposes.

Total capital raised in the Asia Pacific region was $4.7bn across 103 deals in December 2017. Relative to last year, aggregate deal volume decreased by 16%, while aggregate deal value increased by 26%.

No. of Deals and Value by Country (Dec’17)Country No. of Deals Value of Deals ($USDmm)

ChinaJapanIndiaAustraliaSouth KoreaSingaporeHong KongMalaysiaNew ZealandPhilippinesIndonesiaTaiwanThailandVietnam

39211788322210000

2214.20622.70141.40776.50374.70154.2029.90242.50178.802.300.000.000.000.00

No. of Deals and Value YTD Activity (17’ vs. 16’)No. of deals Value of Deals ($USDmm)


ChinaJapanIndiaAustraliaSouth KoreaSingaporeHong KongMalaysiaNew ZealandPhilippinesIndonesiaTaiwanThailandVietnamTotal

39420320179

110452312163

1263

121,083

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

39526424197

197481812144

2128

311,286

0%-23%-17%-19%-44%-6%28%0%

14%-25%-43%

-63%-61%-16%

200%

32,351

21,286

32,558

7,0157,220

5,382

15,791469

1,54838220247584

252123,620

37,019

28,673

5,5388,193

10,3516,0632,144

7342713

1,4349

1781,368

98,482

-13%27%

-12%-26%-48%437%636%540%262%

-86%

-53%-82%26%

2880%

5181%

PRIVATE EQUITY INVESTMENTS & BUYOUTS: SELECTED COUNTRIES

VENTURE CAPITAL INVESTMENTS: NON BUYOUTS BY COUNTRYIn the venture capital market, 140 deals with aggregate transaction value of $3.1bn were completed in December 2017. China continues to account for the majority of deal activity, comprising 75% of total deal value in the region.


0

>1 - 11

>11 - 22

>22 - 34

>34 - 45

>45 - 56

Source: S&P Global Market Intelligence as of Dec 31, 2017. Figures are based on transaction announcement dates. Includes both closed and pending

transactions as well as those without transaction values. Non-buyouts will include all features except for leverage buyouts ( LBO), management buyout

or secondary LBO. Tables are provided for illustrative purposes.

No. of Deals and Value by Country (Dec’17)

No. of Deals and Value YTD Activity (17’ vs. 16’)

Country No. of Deals Value of Deals ($USDmm)ChinaJapanIndiaAustraliaSouth KoreaNew ZealandHong KongSingaporePhilippinesTaiwanThailandVietnamIndonesiaMalaysia

56352275433211100

2301.70195.30157.4096.10151.6012.6055.3085.002.906.002.500.000.000.00



ChinaJapanIndiaAustraliaSouth KoreaNew ZealandHong KongSingaporePhilippinesTaiwanThailandVietnamIndonesiaMalaysiaTotal

51734733378861935838

1319233415

1,610

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

Jan 1, 2017 -31-Dec-17

Jan 1, 2016 -31-Dec-16


31-Dec-17

52537941091

137123493101715414924

1,837

-2%-8%

-19%-14%-37%

-11%-20%-24%

-44%-31%-38%-12%

58%3%

27%

30,569

11,600

27,100

1,6537,402

1,809139

8,982

20510129432185157

90,687

41,6751,4007,894

14,5514,524

219971

5,68123

129138

1,40082422

79,450

-27%18%-6%

-20%-60%-37%

-16%

-6%-69%-78%

14%

826%377%

296%

622%



MARKET ATTRIBUTES: INDEX DASHBOARD

• Among single country equity indices, the S&P China 500 had the highest total return in 2017; it gained 35.05%. The government’s attempts to control debt accumulation may provide headwinds in the short-term. The S&P Hong Kong BMI (32.28%) and the S&P BSE SENSEX (29.56%) completed the top three.

• The S&P Korea BMI climbed 29.49% in 2017 as the decisive victory for President Moon Jae-in calmed South Korea equity markets. Strong earnings from South Korean companies also helped.

• With all other single country equity indices gaining in US dollar terms, 2017 was positive for the region’s equity markets; the S&P Pan Asia BMI rose 32.01%.

• Information Technology was the highest gainer among S&P Pan Asia BMI Sectors; its 55.11% full-year return was nearly 20% more than second-placed Materials, which itself benefitted from rising Aluminum prices. Energy also performed well; it increased 35.09% as commodity prices rose.

• Momentum was the best performing S&P Pan Asia BMI Smart Beta strategy over the past 12-months; the emergence of strong upwards trends helped it to a 47.35% full-year total return. With the headline index moving steadily upwards over the year, Low Volatility was a natural laggard; it gained a relatively low 18.78%.

• Volatility was low in many markets this year; every volatility index in our dashboard declined since the start of the 2017.

Summary

Source: S&P Dow Jones Indices LLC and/or its affiliates. Data as of Dec 31, 2017 Index performance based on total return, except for KOSPI 200. Returns for indices containing more than one currency area - including the S&P China 500 - are in USD, otherwise local currency. Charts and graphs are provided for illustrative purposes. Indices are unmanaged, statistical composites and

their returns do not include the payment of any sales charges or fees an investor would pay to purchase the securities they represent. It is not possible to invest directly in an index. Back tested returns do not represent actual trading results and were constructed with the benefit of hindsight. Returns do not include payments of any sales charges or fees. Such costs would lower

performance. Past performance is not a guarantee of future results. For more information, please visit www.spdji.com.

-0.02%

0.14%

0.18%

0.25%

0.40%

0.42%

0.77%

1.68%

1.96%

2.39%

2.54%

3.67%

6.61%

11.02%

- 2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Japan

China

South Korea

India

Australia

Taiwan

Hong Kong

Singapore

Thailand

Malaysia

Indonesia

Philippines

New Zealand

Pakistan

S&P Pan Asia BMI Country ContributionFull - Year 2017

S&P Pan Asia BMI(32.01%)


Kamlesh P. Mehta B.Com. FCA, DISA (Post qualification course in information system audit from ICAI) is a practicing Chartered Accountant by profession having an experience of 24 years in the field of capital market compliance consultancy, depository services audit, management consultancy, system audit and Commodity market compliance consultancy.

He is a Proprietor of CA firm M/s. KAMLESH P. MEHTA ASSOCIATES & Partner of MEHTA SANGHVI & ASSOCIATES located at Borivali, Mumbai.

He along with his associated concerns specializes in Audit and Assurance Services of various compliance areas related to Capital Market Operations and system audits of broking industry.

He is also providing compliance calendar to BSE brokers forum and ANMI regularly and same is published in their journal. Recently he and his team had drafted compliance manual for commodity brokers published by BSE brokers forum.

He is a regular speaker of the various seminars for broking and DP compliances organized by WIRC (Western India Regional Council of ICAI) and study circle group.

Segment Particulars Due Date

BSE

All Exchanges

All Exchanges

PMS

All Exchanges

Income Tax

NSE

Stamp Duty

Depository

(NSDL/CDSL)

All Stock

Exchanges

MCX-SX

BSE/NSE/MCX-SX

BSE

BSE - Uploading of margin funding file for the month of January 2018

Uploading of Funds, Securities and other details to exchanges as per

SEBI circular of Enhanced supervision

Contingency Drill / Mock Trading Session

PMS - Uploading of activity report on SEBI Portal

Uploading clients’ fund balance and securities balances by the stock brokers

on stock exchanges system as per SEBI circular of Enhanced supervision.

TDS Payment for the Month of January 2018 for Corporate and Individual

Uploading of Margin Funding File for the month of January, 2018

Payment of Stamp duty -Security Exchange and Commodity Exchange

Investor Grievances Report • CDSL & • NSDL

Disclosures by trading members and their group entities on their holdings

in various listed companies for the quarter ended 31.12.2017

Uploading of Margin Funding File for the month of January, 2018

Algo system audit- submission of corrective action taken report

No. of STR filed with FIU-IND for the month of January, 2018 (Including NIL STR)

01/02/2018 to

8/2/2018

3/2/2018

4/2/2018

5/2/2018

7/2/2018

7/2/2018

7/2/2018

10/2/2018

10/2/2018

14/02/2018

14/02/2018

28/02/2018

Before

28/02/2018

COMPLIANCE REQUIREMENT FORTHE MONTH OF FEBRUARY - 2018

Compiled by CA Kamlesh P. Mehta(B.Com, FCA, DISA)M/s. Kamlesh P. Mehta Associates

COMPLIANCE CALECOMPLIANCE CALENDAR

21

REGULATORY PULSEREGULATORY PULSE


GUIDELINES ISSUED FOR EXEMPTION APPLICATION IN CASE OF TRUST AS AN ACQUIREROn December 22, 2017, SEBI has issued a circular outlining a standard format for the filing of an application under Regulation 11 (1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (“Takeover Regulations”) requesting exemption from the obligation to make an open offer (“Circular”).

Over the past few years, promoters of various listed companies, including that of Wipro, Dr. Reddy’s, NIIT, have rearranged their shareholding by transferring the shares held by the promoter group to a trust for charitable purposes or for family succession or for tax purposes. Post restructuring the shares would be held in the name of the trust and not the promoters themselves, even though they continue to hold beneficial interest in those shares. This restructuring also helps promoters to ring fence their personal assets from their business liabilities.

Under the Takeover Regulations, an acquirer (trust in this case) acquiring shares or voting rights over the specified threshold or control over a listed company has to mandatorily

make an open offer. Therefore, such acquirers, i.e. trusts, have been seeking exemption from open offer obligations by filing applications under Regulation 11 of the Takeover Regulations and many of them have received such exemption.

To streamline the process of applying for such exemption, SEBI has issued the Circular outlining the standard format for filing an exemption application in cases involving restructuring of shareholding in the form of a trust. The schedule to the Circular lists indicative conditions, guidelines and undertakings to be given by the applicant where the acquirer is a trust (“Guidelines”). These Guidelines are a consolidated restatement of previous orders where such exemption had been granted by SEBI. The objective behind the Circular is to ensure the quick processing of such exemption applications.

The basic rationale for SEBI to grant such exemptions is that pursuant to such restructuring, there is no effective change in control or transfer of shares to any third party and therefore open offer obligations

should not be imposed for such restructuring. The Circular provides the Guidelines to be followed by exemption applicants to ensure that there is no effective transfer of control or shareholding to third parties.

Chiefly, the Guidelines mandate the trustees and beneficiaries of the transferee trust to be immediate promoters, or their relatives and lineal descendants with specific exclusion of any third party. Further, the Guidelines also prohibit private companies formed by such promoters or their lineal descendants from becoming trustees, as shareholding details of such private companies are not in public domain. The regulator feels that there is a potent risk that shares of such private companies can be later transferred to third parties without the knowledge of the regulator or the stakeholders.

This is a welcome move as it will provide guidance towards the necessary pre-requirements while making exemption application involving trusts, which would lead to an early disposition of cases.

SEBI BOARD MEETINGIn the board meeting on December 28, 2017, SEBI has taken the following decisions:

Consultation Paper on amendments to Investment Advisers RegulationsSEBI had previously issued two consultation papers proposing to amend the SEBI (Investment Advisers) Regulations, 2013 to provide for a strict segregation of the investment advisory and distribution services of an entity. The SEBI Board has now decided to issue a third such consultation paper proposing regulations towards achieving: i) clear segregation between investment advice activity and distribution activity of an entity; and ii) allowing mutual fund distributors to explain the features of the products and ensure that the principle of ‘appropriateness’ is followed. ‘Appropriateness’ means selling the product that is best suited to the individual investor.

There has been a lot of discussion among stakeholders regarding this proposed move by SEBI as it affects a large number of distributors of financial products who at times also act as investment advisers to their clients. However, it seems that SEBI Board has now finally decided that there should be a clear segregation between persons providing investment advice, who act as fiduciaries to their clients, and

distributors who sell financial products and earn commission from fund houses. In order to address the conflict of interest arising out of the distribution and advisory roles played by the same entity, SEBI proposes to restrict distributors from providing any investment advice to their clients. They can only do a ‘suitability’ or ‘appropriateness’ analysis of a particular mutual fund product with respect to a specific client.

The immediate impact, if the proposal is implemented, is that a large number of mutual fund distributors who act as the last mile contact for investors would be restricted from providing any kind of financial advice to their clients. Therefore, these investors would now have to seek specialist investment advice to determine the financial products in which they can invest and then purchase the same through a distributor of such products. The proposed move would create additional barriers for investors entering the market as there is no organized market or demand for pure advisory services. Hence, this proposal is pre-mature and may impact financial inclusion goals and penetration of mutual fund products.

Easing of Access Norms for Investment by FPIs

The SEBI Board has decided to rationalize the ‘fit and proper’ criteria for Foreign Portfolio Investors (“FPIs”). Currently, an FPI applicant has to fulfil various requirements such as being author ized by i ts Memorandum of Association/Articles of Association, having sufficient experience, being permitted to invest outside its home country, etc., in addition to being a ‘fit and proper’ person as defined under SEBI (Intermediaries) Regulations, 2008. Since Category I and II FPIs are essentially Government and Regulated entities, it has been decided that the documentation to satisfy the ‘fit and proper’ criteria will be sufficient for such FPIs and they need not satisfy the other requirements mentioned above.

As of now, a FPI applicant having a bank as an underlying investor is deemed to be a ‘broad based’ fund. It has now been decided to extend this criteria to FPIs having other institutional investors, such as sovereign wealth fund, insurance/reinsurance companies, pension funds, etc., as their underlying investors. While this is a good move, the reasoning behind classification of funds as ‘broad based’ and it being considered as a point of regulatory virtue is unclear. Narrower ownership of funds makes it easier to see the ultimate ownership,

REGULATORY PULSEREGULATORY PULSE

Disclaimer :The newsletter is not in the nature of alegal opinion or advice. Copyright reserved.

Courtesy: Finsec Law Advisors A financial sector law firm which provides regulatory advice and assistance focusingon the securities, investments and banking industry. www.finseclaw.com

Disclosure: Finsec Law Advisors is representing Kirloskar Chillers Private Limited.


making KYC process easier. Further, it has also been decided to provide a time period of three months to regain the ‘broad based’ status if a fund loses the status due to the exit of some offshore investors and the total number of investors goes below the specified threshold.

Prior approval from SEBI in case of change in local custodian or designated depository participants (DDPs) will no longer be required and the new DDP will be permitted to rely on the registration granted by previous DDP at the time of transition.

Amendments to the SEBI (Credit Rating Agencies) Regulations, 1999The Board has approved the increase of minimum networth requirement of Credit Rating Agencies(“CRAs”) from Rs. 5 crores to Rs. 25 crores. Such an increase is counter-productive as it may not result in the enhancement of quality of services, but would instead dissuade entities from seeking registration as a CRA adversely affecting the quality due to lower competition. Further, the cost of capital associated with this requirement will be passed on to the ultimate customer - the investor.

The Board has taken a decision to prohibit: (a)CRA’s; and (b) shareholders holding 10% or more shares or voting rights in a CRA, from holding 10% or more shares or voting rights in any other CRA. Shareholdings by pension funds, insurance schemes and mutual fund schemes are exempted from this restriction. The objective behind this move is ensure independence of each of the registered CRAs and prevent control of multiple CRAs by one set of persons.

Further, CRAs would now be allowed to withdraw the ratings, subject to the CRA having rated the instrument continuously for a stipulated period and in the manner specified by SEBI. We believe requiring the CRAs to mention reasons for such withdrawal is also essential to present the true financial position of the issuer.

The Board also decided to mandate segregation of the activities of a CRA other than that of rating of financial instruments and economic / financial research into a separate legal entity. Activities undertaken by CRAs like providing advisory services, rating of non-financial instruments etc., may create inherent conflicts of interest with the core activity. However, instead of requiring the establishment of a separate legal entity, mandating creation of “chinese walls” might be sufficient to address the concerns.

Amendments to the REIT RegulationsThe Board has decided to reduce the minimum threshold for investment by Real Estate Investment Trusts (“REITs”) in a Holding Company/Special Purpose Vehicles (“SPVs”) from 51% to 50%.This may potentially boost the registration of REITs as many real estate joint ventures have 50-50% partnerships with neither party willing to relinquish control. While the minimum level will be lowered, the REIT is still required to have an ultimate holding interest of 26% in the underlying SPV(s). Further, it has been decided to rationalize the definition of ‘Sponsor Group’ under the REIT Regulations.

Under the REIT Regulations, at least 80% of the value of REIT assets must be invested in complete and rent generating properties, complete and rent generating properties,

while the remaining value of up to 20% can be invested in the specified assets. It has now been decided to allow investment in unlisted shares under the 20% category.

Cross-holding in AMCs or Trustee CompaniesTo reduce conflicting interests in Asset Management Companies (“AMCs”) and Trustee Companies (“TCs”) of competing mutual funds, SEBI Board has decided that:

a) Sponsors, their associates, their group companies, and all connected AMCs of a mutual fund would have to restrict their shareholding in AMCs/TCs of other mutual funds to under 10%, and they would not be permitted to have representation on the boards of such AMCs/TCs of other mutual funds.

b) Shareholder of an AMC/TC holding more than a 10% stake would also be subject to the same restrictions.

Although shareholding in competing AMCs/TCs may hypothetically result in conflicts of interest which may be inimical to the interests of the unit holders of the potentially less-favored fund, the actual harm sought to be avoided is unclear. Especially, in light of the highly regulated environment in which mutual funds operate. It is inefficient to restrict shareholding in competing AMCs/TCs using such a straight jacketed formula when there are other methods to prevent any harm to unit holders arising from such theoretically conflicting shareholder interests. This may be a remedy without an illness.

ANALYZING CIRCULARS (03 DECEMBER 2017 TO 06 JANUARY 2018)

CIRCULARSCIRCULARS


SEBI-PRESS RELEASE

SEBI-PRESS RELEASE

SEBI - REPORT FORPUBLIC COMMENTS

SEBI PRESS RELESE

SEBI

SEBI

SEBI

SEBI/CDSL

SEBI

SEBI

SEBI

SEBI

SEBI

BSE / NSE

Regulator Important Circular's Title For The Period

SEBI Board Meeting ~~ SEBI Board meeting covered following important aspects of - Augment Governance of Credit Rating Agencies (CRAs)mitigate the issues of conflict of interest, Disclosure norms of financial results on the Exchange(s) by issuers as per SEBI LODR 2015,Two Additional methods for listed entities to achieve minimum public shareholding (MPS) requirements , Electronic mode as a valid method of communicating the allotment advice/credit of shares/unblocking of funds, Norms for Shareholding and Governance in Mutual Funds,a separate chapter detailing the framework for listing of SR's will be added to the SDI Regulations, Amendments to the SEBI InvIT, 2014 and SEBI REITs 2014 to help facilitate growth, Easing of Access Norms for Investment by Foreign Portfolio Investors (FPIs),clear segregation between providing investment advice and distribution business and MFDs, Fees Payable for trading in "Options" in Commodity Derivatives- calculation of turnover fees for Options contracts in Commodity to be computed the same way as in Equity Derivatives and finally Board has approved proposed phase II-to permit trading of commodity derivatives and other segments of securities market on single exchange

Refund to PACL Investors ~~ SEBI constituted a committee for selling the properties of PACL and using the sale proceeds to refund the investors, has decided to initiate the process of refund to the investors of PACL with the monies so far realised by it.

Consultation paper on permitting Mutual Funds and Portfolio Managers to participate in Commodity Derivatives Market ~~ SEBI to seek review of investors on whether MF and PMS be allowed to participate and leverage in commodity Derivatives market and to determine an ideal regulatory framework and highlight of this paper is proposal which suggests that Leveraging of portfolio within given framework that is proposed to be permitted in respect of investment in derivatives for PMS, which is presently not permitted.

India: Financial Sector Assessment Program 2017 ~~ Second comprehensive FSAP has been successfully conducted for India in 2017.India has recorded strong growth in both economic activity and financial assets, supported by important structural reforms and terms of trade gains. Increased diversification, commercial orientation, and technology-driven inclusion have supported growth in the financial industry, backed by improved legal, regulatory, and supervisory frameworks.

Transaction Charges by Commodity Derivatives Exchanges ~~ Clause ‘1.b’ Amended of the SEBI circular No. SEBI/HO/CDMRD/DMP/CIR/P/2016/82 dated September 07, 2016 as ~ "The Exchanges will ensure that the ratio between highest to lowest transaction charges in the turnover slab of any contract is not more than 2:1 which was previously 1.5:1.

Disclosure of holding of specified securities and Holding of specified securities in dematerialized form ~~ The details of the shareholding of the promoters and promoter group, public shareholder and non-public non-promoter share holder must be accompanied with PAN Number and to be consolidated on the basis of the PAN and folio number to avoid multiple disclosures of shareholding of the same person.

Categorization and Rationalization of Mutual Fund Schemes ~~ Regarding Categorization and Rationalization of Mutual Fund Schemes additional clause is added. ~ Mutual Funds are required to submit their proposals to SEBI after obtaining due approvals from their Trustees as early as possible but not later than December 15,2017.~ All other conditions specified in SEBI circular dated October 06, 2017 shall remain unchanged.

Investments by FPIs in Government Securities ~~ Exchange has decided to revise the limit for investment by FPIs in G-Secs, for the January - March 2018 quarter, with effect from January 01, 2018, ~ Limit for FPIs in Central G-Secs shall be enhanced to INR 191,300 cr. and for Long Term FPIs revised to INR 65,100 cr., The debt limit category of State Development Loans (SDL), for General shall be INR 31,500 cr, and for Long Term shall be enhanced to INR 13,600 cr.

Circular on Schemes of Arrangement by Listed Entities and (ii) Relaxation under Sub-rule (7) of rule 19 of the Securities Contracts (Regulation) Rules, 1957” ~~ Proposed set of amendments would lead to improvements to the existing regulatory framework governing scheme of arrangement and to expedite the processing of draft schemes and to prevent misuse of schemes to bypass regulatory requirements

Consultation Paper on Amendments to the SEBI (Investment Advisers) Regulations, 2013 ~~The proposals are revised to prevent the conflict of interest between “advising” of investment products and “selling” of investment products by the same entity/person.

Benchmarking of Scheme’s performance to Total Return Index ~~ Mutual Funds are required to disclose the name(s) of benchmark index/indices with which the AMC and trustees would compare the performance of the scheme in scheme related documents. Since decisions are made with an objective to enable the investors to compare the performance of a scheme vis-à-vis an appropriate benchmark.

Electronic book mechanism for issuance of securities on private placement basis ~~To further streamline the process of electronic book mechanism for issuance of debt securities on private placement basis, revisions are done to the existing framework for Electronic Book Mechanism. This includes allowing private placement of other classes of securities which are in the nature of debt securities and enhancing transparency in the issuance, resulting in better discovery of price.

Securities and Exchange Board of India (Settlement of Administrative and Civil Proceedings) Regulations, 2014 [Last amended on December 27, 2017] ~~ Gazette Notification

FII-Investment under Portfolio Investment Scheme - Manpasand Beverages Limited ~~ Series- IL is suspended for Manpasand Beverages Limited effective from December 14, 2017/Series IL is suspended for JSW Holdings Limited effective from December 18, 2017 on account of investment by FIIs/RFPIs under PIS .


CIRCULARSCIRCULARS

Master Circular - Surveillance (Currency Derivatives and IRD) ~~Exchange has provided consolidated circular to refer for various policy and operational matters. This circular is consolidation of all the previous circulars issued by Surveillance department in Currency Derivatives and IRD segment/Equity Derivatives/Equity Segment.

Revised Block Deal Window Mechanism ~~ Details of revised mechanism for the block deal window effective -Jan 01, 2018. API changes w.r.t the Block Reference Price to be referred via circular no 20171127-34 and made live w.e.f January 01, 2018. Revised block deal mechanism in the mock trading session on Saturday, December 30, 2017

Transaction Charges for trades done in Interest Rate Derivative contracts ~~ Exchange to levy transaction charges @ Rs.10/-per crore of Turnover (active/passive side transactions) for trades done in Interest Rate derivatives contracts effective from January 01,2018 to December 31,2018.

Enhanced supervision uploading client’s funds and securities balance new file formats ~~ Revised file format for uploading clients’ Funds, Securities balances-Existing file with additional info. for “Total number of ISINs pledged” and ISIN Wise EOD securities balances in separate File format

Bulk upload facility for updation of Aadhar/UID for existing clients and Revised batch upload file format for UCC ~~ BSE has made the test environment available for the stock brokers to test the new file format changes and bulk upload facility of Aadhar for existing individual and non-individual clients.

Revision in Transaction Charges in Currency Derivatives Segment ~~ Revision on Transaction charges on trades done with effect from January 01, 2018 in currency options contracts Rs.100/- per crore on premium Value (on both active and passive side) and currency futures on Incremental monthly turnover(on both active and passive side) at the end of the month

Bulk upload facility for updation of Aadhar/UID for existing clients and Revised batch upload file format for UCC ~~ A provision of bulk upload facility for updation of Aadhar for existing Individual and non-individual clients would be available to the stock brokers shortly. ~ Refer file format for updation of Aadhar in case of existing Individual and non-individual clients and the steps for updation of Aadhar

International Holidays - 2018 for custodian confirmation of Institutional trades ~~ International holidays on which the institutional trades not confirmed by the custodians would not attract penalties for CH rejection instances

Review of Securities Lending and Borrowing (SLB) Framework ~~ Modification of SLB framework and exchange has given updated parameters w.r.t tenures and market wide position limit,corporate action management and rollover management.

Removal of Name of Exclusively Listed Companies from Dissemination Board (DB) of BSE ~~ Flower and Tissue India Limited, AxSys Health Tech Ltd is removed from DB because of Nil or Negative Valuation as of December 20, 2017.

Abhishek Finance Company Limited. is removed from the Dissemination Board of BSE because of Exit option. December 20, 2017.

Removal of Name of Exclusively Listed Companies from Dissemination Board of BSE ~~ GSAL (India) Limited, Banswara Fabrics Limited, Shree Rajasthan Texchem Ltd, Jai Parabolic Springs Ltd, Indian Aluminium Co. Ltd., Trident Infotech Ltd, is removed from the Dissemination Board of BSE. Amalgamated with a Listed Company, December 14, 2017~~Millennium Beer Industries Ltd(Fmly Inertia Industries Ltd), is removed from the Dissemination Board of BSE because it Merged with a Listed Company,Merged with a Listed Company. December 14, 2017 ~ Govindji Trikamdas Exports Limited, Sriman Organic Chemical Industries Limited, is removed from the Dissemination Board of BSE. Listed on Stock Exchange having Nationwide Trading Terminals with a new name. December 14, 2017 ~Premjyot Fabrics Limited, Pankaj Agro Protinex Limited, Madhumilan Syntex Ltd., 20th Century Engineering Limited, is removed from the Dissemination Board of BSE.Carried out Exit Option at Stock Exchange having Nationwide Trading Terminals.December 14, 2017 ~ Delta Impex Limited is removed from the Dissemination Board of BSE.Listed on Stock Exchange having Nationwide Trading Terminals. December 14, 2017.

Facility to transfer funds in ICCL’s HDFC Bank account for Clients of Mutual Fund Distributors ~~ Mutual fund distributors (MFD) and their clients are requested to note down the modalities for making the payment through NEFT/RTGS, for effectively mapping the funds delivered to ICCL in its ICICI Bank and HDFC bank account against the Orders placed on BSE StAR MF platform.

Removal of Name of Exclusively Listed Companies from Dissemination Board of BSE ~~ Phoenix Real Time Services Limited (Exit option), Chokhani Investments Limited (Nil or Negative Valuation), Shriram Pistons & Rings Limited (Listed on Nationwide Exchange)are removed from the Dissemination Board of BSE. December 05, 2017./Sidh Management Corporate Services Limited, N.E. Electronics Limited, Central Cables Limited, Impala Industrial Enterprises Limited are removed from the Dissemination Board of BSE. December 11, 2017 as the scrips are listed on nationwide stock exchange/Globe Capital Market Limited, removed from the Dissemination Board of BSE. December 11, 2017 on account of 100% promoter holding and Buyback.

Suspension of trading in securities of companies for non-compliances of certain Regulation of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ~~ Trading in Shares of Siddhartha Tubes Ltd will be suspended from December 19, 2017/Mac Charles (India) Ltd. and Shilpi Cable Technologies Ltd (NSE/BSE). will be suspended w.e.f. December 29, 2017 for non-compliance of certain Regulations of SEBI LODR Regulations, 2015-order pending for company and promoter/directors.

Addition of T10 Settlement Type ~~ Members to note that in addition to existing settlement types from T1 to T8, an additional T10 settlement type would be added for certain schemes with settlement type as “T10” on BSE StAR MF platform. ~ The changes shall be made available in the BSE StAR MF live environment from 10th December 2017 after market hours.

BSE

BSE/NSE

BSE

BSE / NSE

BSE

BSE

BSE

BSE

BSE/NSE

BSE

BSE

BSE

BSE

BSE/NSE

BSE


CIRCULARSCIRCULARS

BSE / NSE

BSE

BSE

BSE

BSE / NSE

BSE

BSE

BSE

BSE

BSE

BSE

BSE

BSE / NSE

BSE / NSE

FII Investment under PIS ~~ Six lakh series for special bargain in the Bharat Financial Inclusion Limited is suspended from December 6, 2017 on account of investment by FIIs/FPIs under PIS.

SEBI directions w.r.t. listed Shell Companies - Update on Sri Amarnath Finance Ltd. ~~ The trading in securities of the Sri Amarnath Finance Ltd to be reverted to the status as it stood prior to issuance of SEBI letter dated August 07, 2017 effective from January 05, 2018~~An independent auditor shall be appointed to conduct forensic audit of the Company for verification, including the credentials / financials of the Company.

Suspension of trading in securities of companies for non-compliances of certain Regulation of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ~~ Trading in securities of the Koffee Break Pictures Ltd is suspended from January 25, 2018. on account of non-compliance with Regulation 27(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for two consecutive quarters i.e., June 2017 & September 2017.

Enhancement in Contract Master File format for SLB segment ~~ No change in existing contract master file (SLBCM_DDMMYY) for SLBM but its Existing filler field available in contract master file have been used to display new value.

Suspension of trading in securities of companies for non-compliances of certain Regulation of SEBI (Depositories and Participants) Regulations, 1996 ~~ Austral Coke & Projects Ltd, Bronze Trading Ltd, Excel Castronics Ltd, Sezal Glass Ltd is suspended from January 17, 2018 on account of non-compliance with Regulation 55A of the SEBI (Depositories and Participants) Regulations, 1996 for two consecutive quarters i.e., June 2017 and September 2017. Trading in Austral Coke & Projects Limited, Farmax India Limited, Sezal Glass Limited will be suspended w.e.f. January 17, 2018 on account of non- compliance with Reconciliation of Share Capital Audit Report of SEBI (Depositories and Participants) Regulation, 1996 for two consecutive quarters i.e. 30-Jun-2017 and 30-Sep-2017.The entire promoter shareholding of the companies shall be freezed w.e.f. December 26, 2017 till further notice.

Removal of Name of Exclusively Listed Companies from Dissemination Board of BSE ~~Periwal Bricks Limited, is removed from Dissemination Board of BSE because of Nil or Negative Valuation December 27, 2017~~Mahadeo Jute and Industries Ltd, is removed from Dissemination Board of BSE because of 100% Promoter Equity Holding, December 27, 2017~~Ramaniya Finance & Investment Co ltd,is removed from Dissemination Board of BSE because of Exit Option, December 27, 2017~~Forward Financial Services Ltd,T C P Ltd, Indeen Alloys Ltd, Asian Latex Ltd, Polymer Papers Ltd, is removed from Dissemination Board of BSE because of name of the ELCs were on Dissemination Board of both BSE and NSE. The name of ELCs have been removed from the Dissemination Board by NSE due to Exit option. December 27, 2017~~Dwarkesh Finance Ltd, Koti Resorts Ltd, Marvel Hi-Tech Ltd, S C I International Securities Ltd, is removed from Dissemination Board of BSE because of The name of the ELCs were on Dissemination Board of both BSE and NSE. The name of ELCs have been removed from the Dissemination Board by NSE due to 100% Promoter Equity Holding, December 27, 2017~~AML Steel Ltd (Formerly Ashok Magnetics Ltd), Gujarat Specility Lube Ltd, Secure Industries Ltd,is removed from Dissemination Board of BSE because of The name of the ELCs were on Dissemination Board of both BSE and NSE. The name of ELCs has been removed from the Dissemination Board by NSE due to Nil/Negative Valuation. December 27, 2017~~Castle Traders Ltd. is removed from Dissemination Board of BSE because of name of the ELC were on Dissemination Board of both BSE and NSE. The name has been removed from the Dissemination Board by NSE, because the ELC got Listed on Stock Exchange having Nationwide trading terminals. effective from December 27, 2017.

SEBI directions w.r.t. listed Shell Companies - Update on DB (International) Stock Brokers Limited ~~ Suspension revoked from DB (International) Stock Brokers Limited, and its promoters and directors. The trading shall be reverted to the status as it stood prior to issuance of SEBI letter dated August 07, 2017. effective from December 22, 2017.

SEBI directions w.r.t. listed Shell Companies - Update on Triton corp. Ltd. ~~ Trading in securities of Update on Triton Corp. Ltd. shall be reverted to the status as it stood prior to issuance of SEBI letter dated August 07, 2017 effective from December 19, 2017.

Introduction of New Transaction Charges file for Currency Derivatives Segment ~~ Exchange has proposed to provide a new file for transaction charges levied to members in Currency Derivatives segment. The file shall provide details related to trading members’ turnover as well as transaction charges based on the applicable rates for currency futures, currency options and interest rate futures.

Compliance to new PMLA amendments-Aadhaar Details Submission ~~ MFIs/MFDs/RIAs are informed for compulsory submission of Aadhaar and PAN details required only for non-demat transactions on BSE StAR MF Platform.

Enablement of NSE trading segments in BEST Trading Application ~~ Members are informed that BEST (BSE Electronic Smart Trader) Application is enabled with trading segments of NSE for Equity Cash, Equity Derivatives & Currency Derivatives.

Removal of Name of Exclusively Listed Companies from Dissemination Board of BSE ~~ R B Jodhamal Vidyut Limited, Kanchenjunga Commercial Limited, Yellow Valley Leasing and Finance Limited is removed from Dissemination Board of BSE because of Exit Option. December 12, 2017~~Tridev Finance Company Limited is removed from Dissemination Board of BSE because of 100% Promoter Holding. December 12, 2017.

Graded Surveillance Measure (GSM) ~~ Multiple circulars given with listing of securities Moving in / Moving Out to different stages of GSM and Periodic relaxation of Surveillance

GSM and S+ Framework ~~ Multiple circulars given with listing of securities Moving in / Moving Out to different stages of GSM and Periodic relaxation of Surveillance


CIRCULARSCIRCULARS

Compiled by Rekha Shah, Analyze N ControlThe firm specialises in helping Broking houses in Operational process set up and also has softwares focussed on compliances - regulatory search engine - www.circularsnorders.com and has a state of the art client screening product duly integrated with Anti Money Laundering and Surveillance product.

NSE

NSE

NSE

NSE

NSE

NSE

CDSL

CDSL

NSDL

NSDL

NSDL

NSDL

NSDL

Change in existing file format in CM ~~ Additional columns viz ‘SYMBOL’ and ‘ISIN’ included in CPR.txt and CPR_yyyymmdd.txt reports with effect from January 19, 2018.

Introduction of NSCCL-MASS (Segment Currency/ FNO/ Cash) ~~ NSCCL introducing a new information gateway for members ‘NSCCL-MASS’. It shall be the information gateway for members to communicate online with NSCCL. ~ NSCCL-MASS is a comprehensive solution encompassing network, software application, support and information and shall integrate all existing applications (Margins, NCIS, NCMS, etc.) into a common gateway.

Amendment to indicative penalty structure ~~ Unauthorised trading determined by Investor Grievance Redressal Panel (“IGRP”) /Arbitration.-Rs 10,000/-for every unauthorised trading determined by IGRP/Arb, Member will be debarred from taking new clients for a period of one month and three months respectively as per specified conditions and finally case will placed before DAC.

Additional Reports for Tender- Offers under Takeovers, Buy Back and Delisting ~~ Additional reports to be downloaded on Funds payout provisional in alignment to revised Mechanism for acquisition of shares through Stock Exchange pursuant to Tender- Offers under Takeovers, Buy Back and Delisting’.

Modification in list of securities of Ahmedabad Stock Exchange Limited available on Dissemination Board of NSE ~~ Indusmin Foods Limited (INDUSMFOOD) shall be made available for buying/selling on Dissemination Board of NSE with effect from December 08,2017./Sharee Bharani Spinnings (India) Limited (SBSIL) shall be made available for buying/selling on Dissemination Board of NSE. December 12, 2017

Exclusively listed companies of De-recognized/Non-operational/exited Stock Exchanges placed in the Dissemination Board (DB)~~ Coxswain Technologies Limited, Amrit Agro Industries Limited, Mysore Plantations Limited, Kilkotagiri and Thirumbadi Plantation Limited(Formally known as Thirumbadi Rubber Company Limited),Innovative Finvest Limited, Subh Prabhat Multi Projects Limited, Ellenbarrie Properties Limited is removed from Dissemination Board because of Exit Option,January 02, 2018. ~ Esenes Forgings Limited, The Jeypore Sugar Company Limited, Golden Agro-Tech Industries Limited, Aakar Leasing and Financial Services Limited, Bharat Explosives Limited Ltd is removed from Dissemination Board because of Negative Valuation January 02, 2018.~~Peony Investments Limited Ltd is removed from Dissemination Board because of Amalgamated with another company, January 02, 2018.~~Arihant Exports Limited Maple is removed from Dissemination Board because of Continue to be on the Dissemination Board of Designated Stock Exchange ‘BSE Limited, January 02, 2018.~Holding Limited Ltd, Universal Print Systems Limited, Peirce Leslie India Limited, Tantech Agro Chemicals Limited is removed from Dissemination Board because of Complied with Exit offer prior SEBI Circular dated October 10, 2016 circular. January 02, 2018.

New File Format For Update Of AADHAAR Number UID And Introduction Of New Field UID Verification Flag ~~ A separate file format for updating of Aadhaar number has been prepared (UID verification upload format) with upload ID as 49 (refer Annexure-B) along with the response file format (DPI6) which is a success/failure report (refer Annexure-C). Release scheduled on Friday, December 29, 2017.

UPDATION OF STATE BANK OF INDIA IFSCs AGAINST IFSCs OF 5 MERGED ASSOCIATE BANKS OF SBI ~~ Existing bank details of BOs with IFSCs of 5 associate banks of SBI will be updated with the new IFSC of SBI along with the bank name as “STATE BANK OF INDIA” for demat accounts wherein IFSC of 5 associate banks of SBI was captured earlier.

2018-0001-Policy-Processing of Account Closure and Transmission through Transfer of Holding module only ~~The requests for ‘closure of accounts’ and ‘transmission’ received from clients, Participants are requested to use only ‘Transfer of Holding’ module to process account closure and transmission requests where the target account is in NSDL and are requested to adhere compliance latest by January 31, 2018.

2017-0072-Policy-Launch of redemption of mutual fund units through SPEED ~~ SPEED-e facility for Beneficial Owner is being enhanced to include the feature of enabling clients to redeem Mutual Fund Redemption Units through SPEED-e facility for both types of password and e-Token users.

2017-0012-Policy-DDP-Foreign Portfolio Investment in Corporate debt securities ~~ Providing guidlines for reporting of investment information/transaction by Long Term FPIs related to Corporate debt securities.

Circular for File Format for Beneficiary positions export for Non Disposal Undertaking (NDU) ~~ Depository system is being enhanced to record NDU details and beneficiary position details download, is being modified to incorporate NDU details.

Circular for Dissemination of Issuing and Paying Agent (IPA) certificate and Letter of Offer for Commercial Paper issued to Investors on NSDL website ~~ NSDL will commence the dissemination of the IPA certificate and Letter of Offer for Commercial Paper submitted to NSDL on its website with effect from December 12, 2017 as envisaged in the guidelines issued by FIMMDA.

The aim of this bill is resolution and not

regulation. After 2008, it was understood that countries cannot have

the same treatment for financial and non-

financial firms.

Recently, a bill tabled in Parliament in August - the Financial Resolution and Deposit Insurance (FRDI) Bill 2017 - has been making news due to its controversial ‘bail-in’ clauses. Safety of bank deposits has vaulted into the centre-stage of public discourse for the first time since the minimum on savings at ICICI Bank BSE -0.08 % in 2008. Selective reading -or more fittingly, misreading - of the Financial Resolution and Deposit Insurance (FRDI) Bill has led the general public to interpret the proposed legislation as draconian - one that would make fixed deposits the currency for future bank bail-ins.

Critical social media comments on the supposed use of depositors' funds in the bailing-in of banks and the withdrawal of deposit insurance needed words of assurance from none other than the Prime Minister and the finance minister, who reiterated New Delhi's commitment to "fully protect" public money. To be sure, the FRDI Bill is not the brainchild of this government: The need for a stronger resolution mechanism emerged after the 2008 global financial crisis, when governments across the globe were forced to bail out financial institutions or move them into routine bankruptcy.

In the US, the Federal Deposit Insurance Corporation, which in the past had successfully helped resolve failed banks and credit institutions, was found lacking in its ability to handle a few floundering non-banks and systemically important banks. The government had to choose between letting Lehman Brothers go into the regular corporate bankruptcy system, and a bailout for firms like AIG. Washington is unlikely to forget the $700-billion Troubled Asset Relief Program (TARP) it had to put in place to bail out banks when the US economy was struggling to clamber out of the subprime sinkhole.

Since then, several countries have built new laws on robust resolution, the standards of which have been set by the Financial Stability Board. In India, finance

THE FRDI BILL - DOES INDIA NEEDA CHANGE TO ITS BANKING SYSTEM?

By Neha Ahuja Advocate


FEATUREFEATURE

minister ArunJaitley first brought the attention to bringing such a law in his 2016-17 budget speech where he spoke about an existing vacuum on resolving bankruptcy situations in financial firms.

"The aim of this bill is resolution and not regulation. After 2008, it was understood that countries cannot have the same treatment for financial and non-financial firms," said Joyjayanti Chatterjee, an associate fellow with the Vidhi Centre for Legal Policy, which assisted the finance ministry in drafting the bill. "If an FMCG company, howsoever big, were to fail today, the impact would solely be on the creditors and it can be easily contained. If SBI, LIC or the BSE were to fail, the impact would be disastrous, and we need a separate law to contain insolvency of financial institutions."

The Bill’s main provisionsThe Bill provides for the setting up of a Resolution Corporation - to replace the existing Deposit Insurance and Credit Guarantee Corporation - which will be tasked with monitoring financial firms, anticipating their risk of failure, taking corrective action and resolving them in case of failure. The corporation is also tasked with providing deposit insurance up to a certain limit yet to be specified, in the event of a bank failure.

The Corporation will also be tasked with classifying financial firms on their risk of failure - low, moderate, material, imminent, or critical. It will take over the management of a company once it is deemed critical.

Neha Ahuja, Advocate

• Working as an Advocate in the field of Tax, Intellectual Property, Capital Markets & Securities, Anti-Corruption, Investigation, Manufacturing, Consumer Products, Industrial Products & Durables, Communications (Telecom & Broadcasting), Energy (Power, Coal, Oil & Gas),Mining, Civil and Criminal litigation. Specialized in Criminal Litigation.

• Working at Prompt Legal, which is one of India’s leading independent law firms.

• Regular faculty at Jai Hind College of Commerce and Science for the subject of Law. Lectures given on the following Acts and Bills:Companies Act, 2013, Reserve Bank of India Act, 1934, Banking Regulation Act 1949, Negotiable Instruments Act 1881, Indian Insurance Act 1938, IRDA Act 1999, Consumer Protection Act, 1986, Ombudsmen Act 1975,Indian Stamp Act 1899, Indian Registration Act 1908, Lokpal and Lokayukta Bill.

• Worked as a Constitutional expert on several books published by Lexis Nexis namely “GST” from Ideation to Reality. Also, written textbooks at college level on the subject matters of IPR and Cyber Law published by Vipul Prakashan.

• On the panel as a Legal Committee member to social clubs such as the Cricket Club of India.

• Completed her Bachelors in Banking and Insurance (BBI). There after obtained a Masters degree in Commerce (Mcom) and then completed Legum Baccalaureus (LLB).

Concerns aboundAmong other tools, the FRDI Bill also empowers the Corporation to bail-in the company. While a bail-out is the use of public funds to inject capital into an ailing company, a bail-in involves the use of depositors’ funds to achieve those ends. This can be done either by cancelling the bank’s liabilities, or converting them into other forms, such as equity.

This has caused a lot of concern among depositors who are worried they may lose their hard-earned money deposited with banks. However, the fact is that the risk is no more or no less than it ever was. The Deposit Insurance and Credit Guarantee Corporation provides deposit insurance of up to ₹1 lakh. The rest is forfeited in the event of a bank failure. The FRDI Bill has not specified the insured amount yet, but it is unlikely to be lower than that amount, as the limit was set way back in 1993.

By Ramesh L. SoniManagement Consultant andAdvisor on Labour Laws


FEATUREFEATURE

LATEST AMENDMENT UNDER THEMAHARASHTRA SHOPS &ESTABLISHMENT ACT

The below mentioned amendments effective from 19th Dec 2017 along with the above mentioned provisions

Sr. Amendment - Effective date of implementation 19th December 2017 Earlier provision

1 The provisions of the act shall be applicable on establishments employing 10 or more employees. Therefore the registration under the act shall not be applicable for establishments having less than 10 employees ( However the same shall not be applicable for the establishments already registered and having the valid S&E and till the expiry of the said registration

Registration was applicable even for zero head count

2 The application for registration under the Act should be filed within 60 days from the commencement of operation.

Earlier it was Within 30 days from the commencement of operation

3 The renewal of registration need to be applied online, not less than 30 days before the date of expiry of registration. Incase in delay of submission of renewal, 50% of the renewal of registration fee to be paid as late payment.

Earlier it was 15 days prior to the expiry

4 No women shall be discriminated in the matter of recruitment, training, transfers, promotion or wages.

Earlier there was no such provisions

5 Women employees with their consent shall be allowed to work between 9:30 p.m. and 7 a.m., in any establishment in which adequate protection of their dignity, honour and safety, protection from sexual harassment and their transportation from the establishment to the doorstep of their residence as may be prescribed are provided by the employer or his authorised representative or manager or supervisor.

Earlier 8.30 PM to 7AM

6 The spread-over of an employee in establishment shall not exceed 10.5 hours in any day. Earlier 11 hours in any day

7 The total number of overtime hours shall not exceed 125 hours in a period of 3 months. Earlier 6 hours in a week

8 If an employee is denied weekly holiday, the compensatory leave in lieu thereof shall be given within two months of such weekly holiday.

Earlier there was no such provision

9 The employer of an establishment shall furnish to every worker an identity card. Such card shall contain the following and such other particulars as may be prescribed, namely :

the name of the employer ;the name, if any, and the postal address, of the establishment; the name and age of the worker; date of joining, department, nature of work, designation; the signature (with date) of the employer or manager; Blood Group; Aadhaar Card Number.

Earlier there was No such Provisions

10 Earned Leave - One day earned leave for every 20 days of work Earlier 21 days in year

11 Casual Leave 8 days Earlier there was no provision for casual leave

12 Maximum accumulation of EL shall not exceed 45 days .

In case the employee applies for earned leave and not granted , the earned leave which exceeds 45 days to be encashed at the rate of actual wages At the time of separation , the earned leave which is due to an employee should be encashed

Earlier 42 days of accumulation and there was no such provision for encashment incase the leaves exceeds the accumulation limit

13 National and festival holidays - employees shall be entitled for holidays on 26-Jan, 1-May, 15-Aug, & 2-Oct and 4 such other festival holidays, agreed by the employer and employees.

Earlier:- 26-Jan, 1-May, 15-Aug, & 2-Oct No provision of Festival holidays

14 Establishment wherein fifty or more workers are employed, there shall be provided and maintained a suitable room or rooms as crèche for the use of children of such workers. Provided that, if a group of establishments, so decide to provide a common crèche within a radius of one kilometre, then, the same shall be permitted by the Chief Facilitator, subject to such conditions as may be specified in the order.

Earlier No such provision

15 There is a provision for annual return under the act, which will notified by the authority through a separate notification.

No such provision

16 The penalty for contravention of the New Act and the rules has been enhanced to INR 100,000 and in case of continuing contravention an additional fine which may extend to INR 2000 for every day during which the contravention continues. Further, for repeated offenders the fine may extend to INR 2,00,000.

The Earlier Act provides for a minimum fine of INR 1,000 and a maximum fine of INR 5,000.

3030 FORUM VIEWS - FEBRUARY 2018FORUM VIEWS - FEBRUARY 2018

BSE BULL RUN IN ASSOCIABSE BULL RUN IN ASSOCIATION WITH ZEE TION WITH ZEE BUSINESSBUSINESS (SUNDAY, 15 JANUARY, 2018)

3131 FORUM VIEWS - FEBRUARY 2018FORUM VIEWS - FEBRUARY 2018

SEMINARS & EVENTS CONDUCSEMINARS & EVENTS CONDUCTED BY BBF FOR THE PROGRESS OF


BBF at the 57th Annual Awards Nite of the Association of BusinessCommunicators of India (ABCI - Brand India Summit 2017) (22th December)

BBF Board Meeting (5th January)

(For the past 57 years ABCI has been organizing the Annual AwardsNite to recognize and reward outstanding talent in the profession ofbusiness communications. These awards are considered as the'Oscars' of Business Communications in India.)

BBF - Forum Views (Monthly Capital Markets &Lifestyle Magazine) wins “Silver”at the 57th Annual Awards Nite of theAssociation of Business Communicators of India (ABCI)

Category / Description: Best Internal Magazine

Vikram Limaye (Managing Directorand CEO, National Stock Exchange of

India Limited (NSE)) addressing Uttam Bagri (Chairman, BBF) addressing


TED BY BBF FOR THE PROGRESS OFSTAKEHOLDERS OF CAPITAL MARKETS (DECEMBER 2017 - JANUARY 2018)

Seminar on Voice Recording Solutions for Stock Broking Industryby Telcos (15th January)

Vishal Pandit (AssistantGeneral Manager - Marketing,

Idea Cellular Ltd.)addressing

Sanjay Mandal (Associate VicePresident - Head BusinessDevelopment, BBS (S&P)

Idea Cellular Ltd. addressing

Salil Khanna (National Head -Enterprise & Govt. Business,

Reliance Jio Infocomm Limited.)addressing

Harin Metha (Jt. Secretary -BBF) presenting momentoto Salil Khanna

Kishor Kansagra (GoverningBoard Member) presentingmomento to Sanjay Mandal

BBF - INVESTOR EDUCATION AND AWARENESS INITIATIVES

Maniben Nanavati Women's College(13th December, At BBF)

Dr. G. D. Pol Foundation YMT College of Management(1st January, At BBF)

Every human being is made of matter and Spirit. The Bhagavad Gita helps refine and

sieve out matter. What remains is Spirit.

he Bhagavad Gita helps achieve excellence in the world. And takes Tus beyond, to the state of

Enlightenment. The Gita makes a thorough analysis of the human personality, and identifies your strengths and weaknesses. It helps leverage the strengths and marginalise the weaknesses.

Every human being is made of matter and Spirit. The Bhagavad Gita helps refine and sieve out matter. What remains is Spirit. Matter is of three distinct hues called gunasor qualities. They are sattva (purity), rajas (passion) and tamas (ignorance). The gunas determine the quality of thoughts, emotions and actions in a person. They are like the genetic code in you. Together they bind us to the world. Just as the three primary colours red, yellow and blue mix to create all colours, the combination of gunas creates the infinite variety of beings in the world.

Tamas is a state of inertia and indifference resulting from ignorance. In this state the best qualities get shrouded and our inherent talent is prevented from manifesting. Rajas is a state of discontent and stress brought about by greed, craving and lust. The incessant desire-driven activity and the resultant turbulence in the mind make for mediocrity. Sattva is tranquillity of mind when one operates at one’s best. The mind is calm and contemplative. This is the state of effortless excellence. All execu t i ves , spo r t spe rsons and professionals in every field of activity strive for it - being in the ‘zone’, performing at peak levels. However, nobody knows how to achieve it, much less remain in this superlative state of being. The Bhagavad Gita spells it out clearly and simply so that everyone can operate out of one’s sattva while isolating and eventually eliminating the rajas and tamas within.

The 14th chapter of the Bhagavad Gita deals with the three gunas. It details the


THE GUNA CODE

By Jaya RowFounder, Vedanta Vision &Managing Trustee, Vedanta Trust

PHILOSOPHY & SELF PHILOSOPHY &SELF MANAGEMENT

Jaya Row, Articulate, effective and engaging, Mrs. Jaya Row brings alive the wisdom of the Vedas in a modern context. Combining her experience in corporate life with 40 years of study and research of Vedanta she provides useful insights to life.

Charming oration which transforms complex Vedic principles into brilliant management mantras is the hallmark of her discourses. Her clarity, wit and zeal have captivated audiences far and wide and inspired people from all walks of life.

She has the rare gift of being able to connect with and address the concerns of a wide range of people from varied walks of life - from CEOs, corporate executives and policy makers to industrialists, scientists & doctors, lawyers, academicians, homemakers and university students.

Apart from her popular discourses in India, she is a well loved speaker in the United States, UK, Europe and other countries for the last several years. She has been invited to speak at prestigious organizations such as:

• World Economic Forum Davos • Google, California• Intel, California• MasterCard, New York• World Bank, Washington DC• Deutsche Bank, New York• Stockholm School of Economics• Princeton University, New Jersey• Shell UK, London• Coca Cola Company, Atlanta• Young Presidents’ Organization• Maersk Liner Graduate Programme

She has specially designed world-class educational programs on basic human values for school children and the youth. She has published books on life values for 5 to 8 year olds.

gunas and how they function in your life. Promote sattva. Control rajas and the force of desire. Make a determined effort to eliminate tamas. See the difference in your life.

The last portion gives the traits of a person who has transcended the gunas. It tells us how to become Brahman. When you see the play of the gunas and remain undisturbed by their effects you understand That which is beyond them and reach the exalted state of Enlightenment.

traits of sattva, rajas and tamas and how they bind the human being. ‘Guna’ means rope in Sanskrit. Everyone has all three gunas. As long as you remain oblivious of their nature and influence you get bound by them. When you understand them and their role in your life you can change the guna mix within.

You come up with peak performance when sattva predominates. When rajas prevails greed, disquiet and hankering weigh you down. And when tamas reigns supreme you are overcome with delusion, heedlessness and inertia. However talented you may be, a high degree of rajas or tamas will result in failure. Hence it is imperative to increase your sattva, refine the rajas and declare war on the tamas in you.

The relative strengths of the gunas also determine the environment one goes to after death. A sattvika person is born in a spiritual family where thesattvika content blossoms in the ambience of purity and tranquillity. Pure sattva catapults him to the state of Realisation. The rajasika one is born among people who are attached to action. He gets further ensnared in the world. The tamasika one is born to dull, foolish people. It is only the sattvika person who makes progress. The rajasika one moves within a narrow band while a tamasika person goes downhill.

The mission of life is to go beyond the three gunas and get liberated from the traumatic cycle of birth, death, decay and sorrow. You are born in the world only to attain Immortality. Understand the three

Join us for Bhagavad Gita classes conducted by Smt. Jaya Row at Prempuri Ashram, Babulnath

every Wednesday, 6.30 to 8.00 pm.All are welcome. For queries call 9769179001

www.vedantavision.in

The moment I am restless or disturbed

in the mind, I will retire to silence and

meditation until calmness is restored.

WELLNESS Q&A BY WELLNESS Q&ABY NAMITA JAIN

Q: With increasing age, I tend to lose balance and slip or trip more frequently than I did in my younger days. For instance, while walking on streets - I tend to trip over the side walk. While playing a sport - especially a racquet sport, I find my reflexes not as quick as before. Is there any way to improve my sense of balance and stability?A: In our daily life, we may be faced with challenges to our sense of balance like tripping over the side walk or slipping over a wet surface. Balance is an important factor in most sports, be it clearing a hurdle or reaching to catch or hit a ball.

Balance is not something we generally think about as being part of overall fitness - but it should be. Practice of balance training can facilitate movement skills and raise athletic and functional movement potentials to new heights.

Why balance?All our daily activities require balance. Even walking which we take for granted is the act of losing balance as one foot lifts up, and regaining it by stepping down.

We often take our body’s ability to balance for granted. As we age our natural ability to maintain good balance and posture as well as quick reaction time tends to diminish.

BALANCE

By Dr. Namita JainManaging Director, Kishco Limited


opportunities for different temperaments of people - check your exercise personality and figure out where you fit in best. Some options you could consider are:

Namita Jain, MD Kishco Ltd. has been actively involved in the wellness space for over 25 years. She is qualified from the American College of Sports Medicine, the American Council of Exercise, the Aerobic and Fitness Association of America, the Reebok and the Pilates UK institute. She has authored over 10 best-selling health and wellness books. In the field of rehabilitation, she offers consultations at Bombay Hospital. This column addresses concerns faced by many and her insights for facing the challenge. Learn the powers and perils of lifestyle changes through this Q &A column.

For information and registration on specialized workshops conducted by Namita Jain, contact prism healing institute at - [email protected].

Power walking: Need a challenge while walking? Walk at such a fast pace that it would be actually easier to break into a run. This way you not only burn more calories, but also increase muscle strength and power.

Kick-boxing: Kickboxing can be contact or non-contact exercise session. It involves kicking and punching moves. This workout needs great coordination and power to keep up with the fast changing drills and routines. As the routine picks up speed, the heart rate rises and the workout becomes power-packed.

Take up a sport: Most sports require concentration, focus and balance. Practicing a sport is a great way to improve fitness skills. Tai chi: This is an ancient Chinese exercise character i zed by s low, gracefu l movements. In Chinese philosophy, Chi is the energy force that gives the body vitality. Tai chi is meditative and the emphasis is on inner strength.

Yoga: Many yoga asanas require concentration, focus and balance. Practice of asanas keeps the body fit and supple.

• The lord of danceStand tall. lift your right leg off the floor and hold your ankle. Arch your back and move your torso forward while raising the right leg behind you. Create a smooth arch

through the right side of your body, balancing on the left leg. Hold for 10 breaths or longer if you can. Repeat with the other leg.

• The treeStand tall with the right leg against the left inner thigh. Place your hands in the namaste position and then slowly raise your hands up. Hold for 10 breaths or longer if you can. Repeat with the other leg.

Benefits of balance training• Strengthens core muscles• Improves co-ordination and self

awareness• Increases strength

Practice exercises to improve your balance and keep you fit. As the saying goes “different strokes for different folks,” and so exercise too offers unique

Practice yoga poses that require balance, stand on one leg, roller blade, wind surf, ride a bike, inline skate or ski to maintain or improve inherent balancing abilities. When you start at a young age, you develop your balancing abilities right from the beginning. However, it’s never too late to train for balance.

Get your life in balance. When the balance is right, you have space for yourself - and for your relationships, interests, exercise.

The mind is king. When the mind is at rest your innate self-healing powers come into play and the stress response is reversed.

Regular health checks are important. Consult your physician when you need to. If you are too preoccupied with work it is easy to overlook signs of physical tension building up.

Regular sound Sleep will improve your overall efficiency and reduce stress.

Practice affirmations and meditation. Positive thoughts and meditation keep the body and mind calm and in a state of balance.

‘The moment I am restless or disturbed in the mind, I will retire to

silence and meditation until calmness is restored’

Words by Paramahansa Yogananda

NATURAL WAY TOCONTROL DIABETES

From Prisim The Health InstituteFounder Director: Priti K. Shroff

HEALING INSTITUHEALING INSTITUTE

By Rashna MasterRaw Food Teacher

What is Diabetes?Diabetes is the name of the group of disease caused by the inability of the pancreas to manufacture the amount of insulin needed by the body, resulting in too much sugar in the blood. There is no common cause that fits every type of diabetes. It's causes vary depending on your genetic makeup, family history, ethnicity, health and environmental factors.

There is no common cause that fits every type of diabetes. It's

causes vary depending on your genetic

makeup, family history, ethnicity, health and

environmental factors.


TYPE 1Diabetes caused by the immune system destroying cells in the pancreas that make insulin. This causes diabetes by leaving the body without enough insulin to function normally.

TYPE 2 This type of Diabetes most commonly becomes apparent during adulthood. It was formerly called adult onset or non insulin dependent diabetes. But now days it is rising in children as well.

Over time, having too much glucose in your blood can cause serious problems. It can damage your eyes, kidneys, and nerves. Diabetes can also cause heart disease, stroke and even the need to remove a limb. Pregnant women can also get diabetes, called gestational diabetes.

It is important to do yearly checkups as a Blood test can show if you have diabetes or if you are a border-line Diabetic. One type of test, the A1C, can also check on how you are managing your diabetes.

Exercise, weight control and sticking to your meal plan is essential to control your diabetes. You should also monitor

your blood glucose level and take medicine if prescribed. It has been seen that Diabetes increases more in those individuals who live a stressful life. It is therefore important to bring about some changes in the life style that help an individual to relax and keep the mind calm. Regular Meditation and Right Breathing Techniques are helpful to control sugar levels together with improving health naturally.

left thigh. Place your left leg over your right leg on your right thigh as in Padmasana or Lotus pose. Place your hands on either side of your head with your fingers facing towards your shoulders. Using your palms as support, lift your head and back off the ground. Slowly bring your head to the ground by arching your spine backwards. Remove your hands after you have balanced your weight on your head. Catch hold of your big toe locking your index fingers around them. Hold onto this position for about a minute.

A regular Exercise Plan should include a daily walk or jog of 20 - 30 minutes. This can be followed by some yoga postures that are good for controlling sugar levels.

• Forward and Backward Bending: Stand straight with your arms by your side. Stretch your arms straight above your head. Inhale while bending backwards, and exhale while bending forwards, bringing your arms as low as possible. As you come up, inhale and bend backwards. Exhale and bend forward again. Do this as many times as you can, slowly increasing the count to 20.

• Matsyasana or Fish pose: Lie down on your back. Place your right leg on your

(All yoga asanas should be practiced with the help of an authorized yoga teacher only)

A Diabetes Diet is a healthy-eating plan that's naturally rich in nutrients and low in fat and calories. Key elements are fruits, vegetables and whole grains. A diet for Diabetes patient is basically one that's healthy for everyone.

A diabetes diet is based on eating three meals a day at regular times. This helps your body better use the insulin it produces or gets through a medication.

Foods to avoidDiabetes increases your risk of heart disease and stroke by accelerating the development of clogged and hardened arteries. Foods containing the following can work against your goal of a heart-healthy diet.


HEALING INSTITUTEHEALING INSTITUTE

Grapefruit: is a splendid fruit to consume if a person has Diabetes. It decrease starches, sweets and fats.

Indian gooseberry: is high in Vitamin C. 1 tablespoonful of its juice mixed with a cup of fresh bitter gourd juice taken daily for two months will stimulate the islets of Lengerhans i.e. the isolated group of cells that secrete hormone insulin.

Jamun: is a fruit and is used as traditional medicine, specifically against diabetic because of its affects on the pancreas. The seed contain a glucose which is believed to have the power to reduce the quantity of sugar in urine. The seeds are dried and powdered and can be consumed in capsule form.

Bitter gourd: contains an insulin-like compound called Polypeptide-p or p-insulin which has been shown to control diabetes naturally. A report issued in the Journal of Chemistry & Biology gives evidence that consumption of bitter gourd tends to increase the uptake of glucose and improves glycemic control.

• Saturated fats. High-fat dairy products and animal proteins such as beef, hot dogs, sausage and bacon contain saturated fats.

• Trans fats. These types of fats are found in processed snacks, baked goods , sho r ten ing and s t i ck margarines. Avoid these items.

• Cholesterol. Sources of cholesterol include high-fat dairy products and high-fat animal proteins, egg yolks, liver, and other organ meats. Aim for no more than 200 milligrams (mg) of cholesterol a day.

• Sodium. Aim for less than 2,300 mg of sodium a day. However, if you also have hypertension, you should aim for less than 1,500 mg of sodium a day.

• SUGAR & STARCHY FOOD is to be avoided at all times.

Diabetes patients, like any other individual requires healthy food. They should eat food that is rich in fibre, and avoid high Carbohydrate food that raises blood sugar levels. Diabetics can eat almost every kind of fruit or vegetable. Fruits and vegetables are loaded with the nutrients that keep your body running smoothly.

Foods that help control your blood sugar naturallyFruits contain many vitamins and minerals necessary for good brain and body hea l th . Fru i t s a re s imp le carbohydrates, however, and too many or the wrong kind can quickly raise your blood sugar and also lead to weight gain

Green leafy vegetables are especially healthy for you, whether you are diabetic or not. Spinach, kale and parsley are packed with the vitamins and minerals your body needs while being relatively low in carbohydrates.

Prisim Healing Institute is the one and only dealer in Mumbai of this unique Breath Healing Program. You can avail of a trial session at Prisim Healing Institute. Email us at [email protected] for an appointment.

Rashna Master has been part of Prisim Healing Institute since the year 2006, her passion is teaching and preparing raw and vegan foods . She is an innovative chef, trying new recipes and creating many of her own recipes. She has been trained by Raw Foods Guru Yogini Unmani , The Living Foods Institute (Atlanta). She is also a Corn Treatment Therapist, an Angel Card Reader and Healer.

A Diabetes Plan at Prisim Healing Institute includes Healthy Meals, Yoga, Meditation, and Right Breathing exercises. Jamun seed capsules, Fenugreek-Bitter gourd (Methi-Karela) capsules and Wheatgrass Juice and Capsules are also available.

Fenugreek seeds: Taking a teaspoon of fenugreek seeds, turmeric powder and amla powder in equal quantities with warm water thrice a day helps to control high blood sugar levels. You can even soak one to two teaspoons of fenugreek seeds in water at night and consume this only every morning. Those who are on insulin therapy should consult their doctor before doing so.

(Fenugreek seeds and Bitter gourd can be dehydrated together and taken in capsule form.)

Wheatgrass: has a definite role in improving glucose and lipids levels and can effectively be used in the management of diabetes, suggests a research team in a study published in December 2009 issue of "Journal of Herbal Medicine and Toxicology." This study was conducted on 30 volunteers and wheatgrass was added to one meal. The researchers found that adding 15 g of wheatgrass to the diet significantly lowered blood glucose levels.

Eat a diet that has much organic whole-food ingredients as possible including plenty of fruits and vegetables. Consume food that are rich in omega 3, fatty acids such as avocadoes extra virgin olive oil, flaxseeds coconut oil and healthy nuts, seeds, roots and mushrooms.

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HOW TO CHOOSESECURE WEBCASTINGSERVICES?

#ADVERTORIAL

By Siddharth BeraManaging DirectorEpitome Corporation Pvt. Ltd.

Contact us: [email protected]

Telephone: +91 98795 44338 Website: http://epitomesolutions.in

things that you need to consider while choosing such a service provider:

The foremost decision that you need to take is which of the company events you’d like to webcast. If it is a single live event about an important product launch or any special occasion in the company that you’d like the targeted audiences to know, you need to choose webcasting services. You need to measure whether this approach of webcasting will help to generate leads and revenue for the company. If it does, you should opt for live webcasting services.

re you planning to produce a webcast? You must be aware Aof the ways you can stage

video production. You need to get the best shots of the event you are organizing and edit those to make a great video package. However, webcasting is completely different from that. You need to know how to distribute the video online. The challenge is even greater when you need to webcast live videos on the web channels. India based company Epitome Corporation Pvt. Ltd. offer your own secured channel or can also take the services of the secure webcasting services using which you can deliver a branded video streaming with full of security.

Why choose secure webcasting services?

You may not be aware of all the technical details of webcasting a video on the Internet. That is the r e a s o n y o u s h o u l d c h o o s e webcasting service providers to take up the task for you. Webcasting services are around for a long time. There are quite a few good ones. However, you need to choose the best webcasting service provide who would provide secure webcasting services. There are certain important

solutions. These service providers generally have their own cloud-based platforms. These platforms support the webcast distribution process. However, the webcasts will be managed by you by subscribing to their hosted solutions. If you produce webcasts too frequently, choosing this type of hosted services seems to be a viable solution to your video webcasting problem.

Secure webcasting will also broaden the online event experience. With the right services your events can turn into large virtual events for the target audiences to follow. The videos are often as big as online trade shows bringing a lot of details about the products and services to the potential customers. The virtual events are nowadays becoming the platform for attracting online customers and brand enthusiasts.

If you have a certain in-house webcast expertise and yet are looking for a packaged solut ion for webcasting the videos of the company, you should choose hosted

The virtual events are nowadays becoming the platform for

attracting online customers and

brand enthusiasts.

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