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Financial Markets Conclave
HighLights
 
  • “We have laid down an eight-lane highway,” quipped Mr Ravi Varanasi, Senior Vice President, National Stock Exchange (NSE).

    Mr Varanasi said this while describing the financial market infrastructure in India at the Financial Markets’ Conclave organised by the Confederation of Indian Industry (CII) Eastern Region in Kolkata today with a theme ‘
    Revitalise the Indian Capital Market towards Faster Growth’.

    However, the challenge, Mr Varanasi added, is how to drive in ‘micro investors’ and small household savings to the capital market.
  • In his view, these niche clients have different risk profiles. Therefore, a new set of services, products and distribution channels is required to reduce their costs and earn a fixed income. He also urged the government to look into the disinvestment procedures to encourage more retail funds and ETF and cited the successful disinvestment procedure adopted by Hong Kong in 1997 through the ETF route.
  • “Though Indian households currently save 31% of the disposable income, less than 2% is deployed in the equity markets,” said Mr S V Krishnamohan, Chief General Manager, SEBI, “Almost 55% of the funds are invested in fixed deposits, gold, real estate and other conventional avenues.”

    Mr Krishnamohan also revealed SEBI’s safety net proposal to introduce a regulation of 5% buy back of issue size by the issuer if the price falls by 20% in the first 6 months of the IPO.  However, he invited further recommendation on that. He also said one company has voluntarily introduced such safety net and have been benefited by that.

    According to him, the rise in investor activism will ensure better corporate governance. He also said that SEBI has introduced a regulation for e-voting which will encourage participation of shareholders and would lead to higher transparency and corporate democracy.

    SEBI, Mr Krishnamohan said, has undertaken some investor awareness programmes. At least 330 districts have been covered.
  • Mr D R Dogra, MD & CEO, CARE Ratings, said liquidity is a problem for various stocks except for the top 10 or 20. He also said in the absence of a standardised pricing strategy of IPOs even bad IPOs sell for high price in good times “taking gullible investors for a ride”.
  • According to him, market makers can play a significant role in promoting liquidity in the market. Reduction of fees and charges would help to make the Indian capital market more attractive at the global retail market, said Mr Dogra who also called for more power for SEBI to enforce regulations on insider trading.
  • Mr R K Agrawal, Chairman, CII Eastern Region, said a two-pronged strategy of raising financial literacy and introducing innovative products and services will help ensure more investment from the domestic household sector. He also stressed the need for timely action by the regulators to make the market more attractive.
  • “There are too many Ponzi Schemes running particularly in these parts of the countries for several years,” warned Mr Akshay Gupta, MD & CEO, Peerless Funds Management Co Ltd, and urged the media to raise awareness against them.
  • “Reasonable corporate governance and financial state of the company will help investors to choose quality stocks”, said Mr Pratip Kar, former ED, SEBI and consultant, World Bank and IFC.
  • Mr S P Tulsian, Investment Adviser, said more than the quantum, the downward trend is worrying and stressed on fiscal consolidation as a prerequisite for economic growth.
  • “Simpler laws and better enforcement are the need of the hour to improve corporate governance.” said Mr Prithvi Haldea, Chairman and Managing Director, Praxis.
  • Ms Shivani Bhasin Sachdeva, CEO, India Alternatives Investment Advisors Pvt Ltd, said private equity raised 4 times money than IPOs for non-Government company in the past few years.
  • Mr Rakesh Somani, President, ANMI, said most stocks in Indian market are at 30% of their peak, highlighting their potential.
  • Prof Ajitava Raychaudhuri of Jadavpur University said that to ensure growth the system has to eliminate the ‘rent seekers’ indicating the corrupts looking for higher gains due to their position of advantage.
  • Mr Amit Chhawcharia, Treasurer, Citicorp Finance India Limited, said risk is omnipresent and one needs to learn how to identify risks to implement proper steps to rectify the same.
  • “As the reforms process continue, regulators and corporate have to work hand in hand”, said Mr S K Menon, Chairman, Economic Affairs, Finance and Taxation Subcommittee, CII Eastern Region.
  • Mr Bijay Murmuria, Chairman, Financial Market Core Committee, CII Eastern Region, praised the performance of the Indian capital market ‘rooted in the performance of the corporate sector as well as regulations by SEBI as the primary custodian of the market.’
  • Dr Saugat Mukherjee, Regional Director, CII Eastern Region, was also present.
 
Description

At a time when capital markets across the globe are struggling, the financial market in India manages to holds its own. Despite the various challenges thrown up by the economy such as lower growth rate and stalled reforms, profitability of the companies and reasonable valuations are driving the sector.

The new SEBI framework has not only broadened horizons, it has also reinvigorated the sector. However, more needs to be done. Better products and services to provide higher returns at lower risks must be devised to attract a higher proportion of the huge household savings of the nation.

In times of high cost of financing from banks, the sector can play a significant role in driving the economy by drawing the much-needed funds for capital formulation and infrastructure creation from household savings.

Against this backdrop, CII Eastern Region had organized Financial Market’s Conclave on 16 February, 2013 at Kolkata.  The conference analyzed the recent policy changes and macroeconomic scenario and the possible impacts they may have on the financial sector which would have major bearings on corporate leaders and retail investors.

Sponsored By
Knowledge Resources
You will get access to following Knowledge Resources by subscribing to the Digital Library of this event.
 
New Financial Instrument & Risk Management by Amit Chhawchharia, Treasurer, Citicorp Finance India Limited
Private Equity by Shivani Bhasin Sachdeva, MD & CEO, India Alternatives Investment Advisors Private Limited
Revitalising Indian Capital Markets by D.R Dogra, MD & CEO, CARE Ratings
Mr R K Agrawal, Chairman, CII Eastern Region at the Inaugural Session of the Financial Markets Conclave 2013
Mr Bijay Murmuria, Chairman, Financial Markets Core Group at the Inaugural Session of the Financial Markets Conclave 2013
Mr D R Dogra, MD & CEO, Care Ratings at the Inaugural Session of the Financial Markets Conclave 2013
Mr Ravi Varanasi, Senior VP, The National Stock Exchange of India Limited at the Inaugural Session of the Financial Markets Conclave 2013
Mr S V Krishnamohan, CGM, Securities and Exchange Board of India at the Inaugural Session of the Financial Markets Conclave 2013
Mr S K Menon, Chairman, Economic Affairs Subcommittee, CII Eastern Region at the Inaugural session of the Financial Markets Conclave 2013
Mr Pratip Kar, Former Executive Director, SEBI & Consultant, World Bank & IFC at the “Sowing the New Seeds of the Money Plants”
CA SP Tulsian, Investment Advisor at the “Sowing the New Seeds of the Money Plants”
Mr Ravi Varanasi, Senior VP, NSEIL at the “Sowing the New Seeds of the Money Plants”
New financial instrument/Risk management by Mr Amit Chhawchharia, Treasurer, Citicorp Finance India Ltd
Broadening the access to funds through the P|E/VC route by Ms Shivani Bhasin Sachdeva, CEO, India Alternatives Investment Advisors (P) Ltd
Mr Akshay Gupta, MD & CEO, Peerless Funds Management Co Ltd at the “Sowing the New Seeds of the Money Plants”
An Open House Discussion on Sowing the New Seeds of the Money Plants
A Panel Discussion on India Growth Story-No fiction only facts
An Open House Discussion on India Growth Story-No fiction only facts
 
Charges to access Event
 
Participant TypeAmount (in Rs)
Member
2000
NonMember
3000