Forum Views - Aug 2024
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BOMBAY STOCK EXCHANGE BROKERS' FORUM (BBF) | MUMBAI, INDIA
AUGUST 2024 | VOLUME: 13 • ISSUE NO. 5 •
East Asian Firms Partnering with Indian Tech
Enhancing Governance
Passives - Smart Beta Way
Next-Gen Audits: RPA, AI/ML & Blockchain
Workplace Safety: A Key Business Lever
Building a Brand in a Crowded Market
Mastering Media Communication
India’s Increasing Importance in Global Trade
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Homelessness in Mumbai: A Deep Dive
The Art of Meditation
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INSIDE
FORUM VIEWS - AUGUST 2024
EXECUTIVE COMMITTEE
GOVERNING BOARD MEMBERS
BOMBAY STOCK EXCHANGE BROKERS’ FORUM (BBF)
GOVERNING BOARD 2023 - 24
FORUM VIEWS - AUGUST 2024
Ajit Sanghvi
MSS Securities
Pvt. Ltd.
Cyrus Khambata
Paytm
Money Ltd.
Ashish Rathi
HDFC
Securities Ltd.
Kamlesh Jhaveri
Jhaveri
Securities Ltd.
Ketan Marwadi
Marwadi Shares
& Finance Ltd.
Rajiv Kejriwal
SBICAP
Securities Ltd.
Purav Fozdar
Axiom Share
Broking Pvt. Ltd.
Neeraj Choksi
NJ India
Invest Pvt. Ltd.
Parth Nyati
Swastika
Investmart Ltd.
Dr. Pravin Bathe
Angel
One Ltd.
Kranthi Bathini
WealthMills
Securities Pvt. Ltd.
Vivek Gupta
GEPL Capital
Pvt. Ltd.
Virender Mansukhani
Mansukh Securities
and Finance Ltd.
Uttam Bagri
BCB Brokerage
Pvt. Ltd.
Tejas Khoday
Fyers Securities
Pvt. Ltd.
KISHOR KANSAGRA
Chairman | BBF
Pragya
Securities Pvt. Ltd.
KUSHAL SHAH
Jt. Secretary | BBF
Ratnakar
Securities Pvt. Ltd.
RAJIV CHOKSEY
Treasurer | BBF
KR Choksey Shares
& Securities Pvt. Ltd.
ANURAG BANSAL
Vice Chairman | BBF
SMC Global
Securities Ltd.
NIRAV GANDHI
Secretary | BBF
JM Financial
Services Ltd.
Saurabh Jain
SSJ Finance &
Securities Pvt. Ltd.
S. P. Toshniwal
Sunlight
Broking LLP
Roopkishor Bhootra
Anand Rathi Shares &
Stock Brokers Ltd.
Santosh Jayaram
GROWW
Shripal Shah
Kotak
Securities Ltd.
Ajay Kejriwal
Choice Equity
Broking Pvt. Ltd.
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FORUM VIEWS - AUGUST 2024
BBF Steering Committee
Kishor Kansagra (Chairman)
Anurag Bansal (Vice Chairman)
Nirav Gandhi (Secretary)
Rajiv Choksey (Treasurer)
Kushal Shah (Jt. Secretary)
Concept, Production and Editorial: Dr. Vispi Rusi Bhathena, PhD (h.c.)
Publisher Name: Dr. V Aditya Srinivas | Nationality: Indian
Address: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001. Maharashtra
Printer Name: Dr. V Aditya Srinivas | Nationality: Indian
Address: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001. Maharashtra
Editor Name: Dr. V Aditya Srinivas | Nationality: Indian
Address: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001. Maharashtra
Place of Publication: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001.
Maharashtra
st
Printing press: Kshitij Printers, 49 Parsi Panchayat Rd., Ashok Ind. Est., 1 Floor, Andheri (E), Mumbai - 400069.
Maharashtra
Design & Layout: Harshad Gajera
10
Your
Questions
Answered
GOVERNANCE
14 Insights
PASSIVES -
THE SMART BETA WAY
16 Feature
COMPLIANCE CALENDAR
33
Regulatory
Compliance
NEXT-GEN FINANCIAL AUDITS: LEVERAGING RPA,
AI/ML & BLOCKCHAIN TECHNOLOGIES
07
Global
Insights
WHY EAST ASIA, JAPAN,
SOUTH KOREA, AND TAIWAN
COMPANIES ARE KEEN TO
COLLABORATE WITH INDIAN
TALENTS IN THE TECH FIELD
THE RESONANT POWER OF VIBRATIONS
Leadership,
Empowerment & Lifestyle
34
THE ART OF MEDITATION: A JOURNEY TOWARDS INNER PEACE AND WELL-BEING
KEEPING UP WITH THE
NEED OF TIME
WORKPLACE SAFETY: AN OFTEN-OVERLOOKED,
UNDERUTILISED BUSINESS LEVER
BUILDING A BRAND IN TODAY’S CROWDED
MARKET MIGHT BE THE BEST THING YOU
CAN DO FOR YOUR BUSINESS!
CRISIS CONTROL: MASTERING MEDIA
COMMUNICATION UNDER PRESSURE
NAVIGATING THE SHADOWS: A DEEP DIVE INTO
HOMELESSNESS IN MUMBAI
INDIA’S INCREASING IMPORTANCE IN GLOBAL TRADE:
OPPORTUNITIES AND CHALLENGES
PARTNERSHIP
FORUM VIEWS - AUGUST 2024
Dr. Vispi Rusi Bhathena, PhD (h.c.)
Chief Executive Officer
Dr. V. Aditya Srinivas
Chief Operating Officer
and Chief Economist
Economy and Markets Shine Together
Indian stock markets are at an all-time high, and economic indicators show strong signs of
growth and resilience. In June, the Goods and Services Tax (GST) collection reached `1.74 lakh
crore, indicating the stabilization of GST with an average collection exceeding `1.5 lakh crore.
This robust collection demonstrates strong economic momentum. The Indian economy is
resilient and gaining strength.
In the United States, inflation has come down to 3.30%, close to the estimated 3.40%. The US
Federal Reserve has set a target of 2% for inflation.
T H E
BBF SECRETARIAT
Currently, interest rates stand at 5.25%, a multi-decade high. The upcoming US elections will be
a key event, potentially influencing the Fed's policy under the new administration.
The European Central Bank (ECB) has reduced its interest rate by 0.25%, bringing it from 4% to
3.75%. Inflation in the Eurozone has decreased from 10.6% in 2022 to 2.6%, prompting the ECB
to cut rates. It is the first major central bank to do so ahead of the US Fed. This downward
movement in interest rates is expected to start by the end of the year, which is critical for
boosting global demand and consumption.
The Reserve Bank of India (RBI) kept the Repo Rate unchanged at 6.5% in its previous monetary
policy meeting. Despite the Consumer Price Index (CPI) inflation being at a 12-month low of
4.75%, the RBI remains cautious, anticipating potential stickiness in inflation in the coming
months, thus adopting a wait-and-watch approach.
Indian stock markets are at an all-time high, driven by substantial inflows from both domestic
and foreign investors. In 2024, Foreign Institutional Investors (FIIs) invested `11,000 crore,
while mutual funds contributed `1,94,000 crore, primarily from domestic sources. Monthly
Systematic Investment Plan (SIP) flows into the markets are close to `21,000 crore, reflecting
the confidence of retail investors in the Indian growth story and their long-term vision.
FORUM VIEWS, AUGUST 2024 edition
From
to You...
BBF
FORUM VIEWS - AUGUST 2024
FORUM VIEWS - AUGUST 2024
he 21st century is the era of Asia, when the economic
and technological power of the Asian region will
Tdominate the world stage. This promising future will be
further strengthened by increasing cooperation between key
Asian players: Japan, South Korea, Taiwan, and India.
By building on their strengths and working together, key
Asian countries are not only driving mutual growth, but are
also becoming benchmarks for global innovation and
development.
Japan, South Korea, and Taiwan have long been at the
forefront of technological progress. Japan's leadership in
robotics, automotive technology and consumer electronics
is well known. South Korea's dominance in electronics,
semiconductors and mobile phones, and Taiwan's
stronghold in semiconductor manufacturing, continue to
push the boundaries of what is possible in the high-tech
sector.
In recent years, Japan, South Korea, and Taiwan have
increasingly sought partnerships with Indian talent. This
burgeoning partnership is not a mere coincidence, but a
strategic alliance driven by several factors that promise
mutual growth and innovation.
Japan, South Korea, and Taiwan are renowned for
their technological progress and innovation. These countries
have established themselves as world leaders in areas
such as electronics, robotics, semiconductors, and
telecommunications.
known for its pioneering technologies in robotics,
automotive technology and consumer electronics, Japan
has a rich history of innovation. Companies such as Toyota,
Sony and Panasonic have been benchmarked in their
respective industries. In recent years, Japanese start-ups
have emerged as important players in artificial intelligence
(AI), fintech and biotechnology. For example, Preferred
Networks has focused on deep learning and robotics, while
Liquid has made payment solutions and blockchain
technology.
Technological capabilities of Japan, South Korea, and
Taiwan
Japan:
WHY EAST ASIA, JAPAN, SOUTH KOREA, AND
TAIWAN COMPANIES ARE KEEN TO COLLABORATE
WITH INDIAN TALENTS IN THE TECH FIELD
Naotaka Nishiyama
Founder CEO
Talendy (Tech Japan)
South Korea: dominated by conglomerates such as
Samsung, LG and Hyundai, South Korea is an electronics,
semiconductor, and telecommunications powerhouse.
Samsung has a significant influence on the global high-tech
market. Korean start-ups are also making waves, especially
in the areas of gaming, e-commerce, and AI. Companies
such as Naver and Kakao are moving beyond search engines
and messaging apps into AI and fintech respectively; start-
ups such as Coupang are revolutionizing e-commerce with
advanced logistics and delivery systems.
Japan, South Korea, and Taiwan have
long been at the forefront of
technological progress. Japan's
leadership in robotics, automotive
technology and consumer electronics is
well known. South Korea's dominance
in electronics, semiconductors and
mobile phones, and Taiwan's
stronghold in semiconductor
manufacturing, continue to push the
boundaries of what is possible in the
high-tech sector.
Tokyo, Japan
Global Insights
FORUM VIEWS - AUGUST 2024
Taiwan: Taiwan is a center of semiconductor manufacturing,
led by TSMC. Taiwan's focus on hardware innovation and
manufacturing excellence has made it an integral part of the
global high-tech supply chain. Taiwanese start-ups have
achieved success in the hardware, IoT and biotech sectors.
Gogoro, an electric scooter company, is revolutionizing urban
mobility, while Appier is providing AI-powered marketing
solutions to businesses around the world
challenge: a shortage of IT personnel. The rapid expansion of
the start-up ecosystem is outstripping the supply of skilled
professionals, creating a gap that needs to be addressed to
sustain growth.
I has myself been one of the contributors to the start-up
ecosystem in Japan, and through my experience, I am
convinced that the piece that is most lacking is human
resources.
There is a shortage of around 300 000 IT professionals in
Japan. If current trends continue, this gap is expected to
widen to 790 000 by 2030. South Korea is facing a shortage
of around 200 000 IT specialists due to the growing demand
for technical personnel in line with the drive for the fourth
industrial revolution. And Taiwan is also short of 150,000 IT
workers.
India's large pool of highly skilled professionals makes it an
attractive destination for global companies looking to utilize
human resources: its emphasis on STEM (science,
technology, engineering, and mathematics) education and
its thriving IT industry creates a strong workforce. Below are
some of the key reasons for the high demand for Indian
talent.
High-Quality Education: Leading Indian institutions such as
the Indian Institutes of Technology (IITs) and the Indian
Institute of Management (IIM) produce graduates with high
technical and managerial skills. These institutions are
recognized worldwide for their rigorous academic standards
- IITs and IIMs are iconic, but there are so many other
excellent institutions in India.
English Language Proficiency: Being fluent in English, the
global language of business, makes Indian professionals
more accessible and easier to integrate into multinational
teams. This linguistic advantage facilitates smooth
communication and collaboration.
Leadership: Indian Leadership comes from a diverse
environment and can embrace heterogeneous values.
Individuals are different but can move forward by utilizing
differences to create a larger framework. The leadership that
Indians have is important for building businesses globally.
Collaboration between Japanese, South Korean and
Taiwanese companies and Indian high-tech talent is
underpinned by several synergies that benefit both parties:
Complementary Strengths: Japanese, South Korean, and
Taiwanese companies bring technical expertise,
infrastructure, and access to global markets. Indian
professionals bring skills, creativity, and leadership.
Together, they form a powerful combination that drives
innovation and efficiency.
Attractiveness of Indian Talents
Collaboration Synergies
Despite the impressive growth,
these countries face a major
challenge: a shortage of IT
personnel. The rapid expansion of
the start-up ecosystem is
outstripping the supply of skilled
professionals, creating a gap that
needs to be addressed to sustain
growth.
Booming Start-up Ecosystems in Japan, South Korea and
Taiwan
Start-up Investment
Shortage of IT Talents
The start-up ecosystems in Japan, South Korea and Taiwan
have experienced significant growth in recent years. Each of
these countries has invested heavily in the start-up sector,
indicating a focus on fostering innovation and
entrepreneurship. Start-ups from Japan, South Korea, and
Taiwan play an important role in fostering collaboration with
Indian talent. They are agile, innovative, and often open to
cross-border partnerships. By utilizing India's vast pool of
skilled professionals, these start-ups can accelerate their
growth and bring innovative products to market.
In 2023, Japan invested over USD 10 billion in start-ups,
setting a new record. The government and private sector are
supporting this through various funding initiatives and
policies to encourage entrepreneurship.
South Korea, known for its strong tech infrastructure,
attracted around USD 6 billion in start-up investments in
2023, becoming a hub for tech start-ups focused on
innovation and digital transformation.
Taiwan's start-up ecosystem is also growing, with
investments reaching approximately USD 2 billion in 2023.
The country is leveraging its strong manufacturing and tech
sectors to boost its start-up scene.
Despite the impressive growth, these countries face a major
FORUM VIEWS - AUGUST 2024
Global Capability Centers and Innovation: Several
companies have established Global Capability Centers in
India to utilize in-country talent for research and
development. These centers play an important role in
developing cutting-edge technologies and products for the
global market.
Cultural Exchange and Knowledge Transfer: Cooperation
facilitates cultural exchange and knowledge transfer. Indian
professionals are exposed to advanced technologies and
best practices from Japan, South Korea, and Taiwan, while
companies benefit from the innovative approaches and
novel ideas brought by Indian personnel.
Of course, it is not only start-ups, but also major
manufacturing companies from other countries already
understand the importance of India and are accelerating
their collaborations with India. Several successful
collaborations highlight the effectiveness of this
partnership:
Sony: Sony's Software Centre in Bangalore plays a pivotal
role in software development for consumer electronics and
entertainment products. The center utilizes India's software
engineering expertise to create innovative solutions. Indian
engineers contribute to the development of advanced
algorithms for Sony's image processing and audio
technologies.
Samsung: Samsung has established several R&D centers in
India, focusing on software development, artificial
intelligence, and the Internet of Things (IoT). These centers
contribute significantly to Samsung's global product
development. The Indian team plays a pivotal role in
enhancing Samsung's voice assistant Bixby and developing
new features for Galaxy smartphones.
TSMC: TSMC works with Indian semiconductor experts to
enhance manufacturing processes and develop new
semiconductor technologies. This partnership is critical to
maintaining TSMC's leadership in the global semiconductor
industry. Indian engineers contribute to the development of
cutting-edge chip designs and process optimization that
keep TSMC at the forefront of the semiconductor market.
On the other hand, it is also true that challenges exist.
Basically, when inviting personnel from India to Japan, they
are required to learn the local language (Japanese). The
same applies to South Korea and Taiwan. As a host
company, I believe it is necessary to create an environment
in which Indian personnel can work without language
barriers.
Case studies Successful Collaboration
Challenges
Companies in each country have their own culture, which
can be an obstacle for global personnel when working there.
The working environment needs to be improved so that
receiving companies can make better use of global human
resources. It may be better to refrain from pushing too much
to be 'Japanising', 'Koreanising' or 'Taiwanising'. Rather, it
may hinder the inherent abilities of Indians.
It is important that companies continue to provide an
environment in which Indians can demonstrate their
abilities and continue to grow.
Collaboration between Japanese, South Korean and
Taiwanese companies and Indian technical personnel is
promising. As technology continues to evolve rapidly, the
demand for skilled professionals will only increase. Fields
such as artificial intelligence, machine learning, cyber
security and biotechnology are expected to see significant
growth and offer new avenues for collaboration. By
harnessing each other's strengths and capabilities, these
collaborations are not only driving economic growth, but are
also shaping the future of technology.
Moreover, the Indian Government's focus on initiatives such
as 'Digital India' and 'Make in India' align with the interests of
foreign tech companies, providing them with an
environment for investment and growth. These initiatives
aim to strengthen India's digital infrastructure, promote
innovation, attract foreign investment, and create a
favorable ecosystem for collaborative ventures.
We at Talendy are committed to building a one-stop
platform that opens doors to Indian talent by consolidating
information held by companies in Japan, South Korea
and Taiwan. We will open up the potential and future
of Indian talent and prepare the stage for them to shine
even brighter.
Future Prospects
Naotaka Nishiyama is the founder of two organizations.
Talendy is an HR Tech Startup that aims to provide lifelong support to highly
skilled Indian talents in the technology industry. In collaboration with the premier
universities in India, which opens a door of Japan, South Korea, and Taiwan to
Indian talents.
giv is a non-profit organization based in Japan that operates as a “Non-Monetary
Social Experiment.” It provides a platform for people to connect with each other
through gratitude by giving and receiving what they love and excel at without
using money.
He strongly believes in the importance of achieving both economic growth and a
society that promotes emotional well-being. His personal mission is to provide
opportunities for individuals to make them shine.
Prior to founding those, He served as the Head of Asia at Deloitte Group, where he
collaborated with METI Japan and JETRO to establish numerous global business
partnerships.
10
FORUM VIEWS - AUGUST 2024
y focusing on governance, brokers can not only mitigate
risks but also enhance their reputation and attract more
Binvestors. Join us as we explore critical questions and
insights to help you elevate your governance standards.
Key governance indicators include board independence,
diversity, expertise, tenure, meeting attendance, committee
structures, and executive compensation policies. You should
also consider the separation of CEO and Chair roles, the
presence of a lead independent director, and the board's track
record in strategic decision-making and risk oversight.
Emphasize the benefits of long-term investing by presenting
historical data on sustainable companies' performance,
explaining the risks of short-termism, and showcasing case
studies of successful sustainable businesses. Structuring
investment portfolios to align with clients' long-term goals and
values can also be very effective.
Highlight companies with strong R&D investments in
sustainable technologies, innovative business models
addressing sustainability challenges, and effective adaptation
strategies. Educating clients on the long-term value creation
potential of such innovation and the risks of failing to adapt to
sustainability trends is crucial.
Assess board quality by analyzing the skills matrix,
independence, diversity, and tenure of directors. Evaluate the
1. What are the key governance indicators I should
consider when evaluating a company's board structure and
effectiveness?
2. How can I encourage my clients to consider long-term
sustainable value creation over short-term gains?
3. What role do we, as stock brokers, play in promoting
corporate innovation and adaptation to sustainability
challenges?
4. How can I effectively evaluate the quality of a
company's board of directors and its impact on corporate
strategy and performance?
board's involvement in strategy formulation, its oversight of
management, and its responsiveness to shareholder concerns.
The frequency and quality of board evaluations and succession
planning are also important indicators.
Divya Momaya
Founder
MentorMyBoard
GOVERNANCE
5. What strategies can I use to encourage companies to
improve their ESG performance and disclosure?
6. How can I stay updated on the latest developments in
board governance and sustainable development?
Engage directly with company management, support
shareholder resolutions on ESG issues, and collaborate with
other investors to promote best practices. Use your voting
power to influence corporate behaviour and communicate
client expectations regarding ESG performance and disclosure.
Engage in continuous learning by regularly reading industry
publications, attending relevant conferences and webinars,
Client education on the relevance and
potential impact of ESG factors is also
necessary, requiring brokers to adapt
their analytical approaches,
potentially upskill, and balance ESG
considerations with traditional
financial metrics and client goals.
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