Fullscreen

Forum Views - Aug 2024

Welcome to interactive presentation, created with Publuu. Enjoy the reading!

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

|

|

|

|

Homelessness in Mumbai: A Deep Dive

The Art of Meditation

|

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.

Disclaimer: This magazine is meant for information purposes only and does not constitute any opinion or guidelines or recommendation on any course of action to be followed by the reader(s). It is not intended to be used as trading or

investment advice by anybody and should not in any way be treated as a recommendation. The information contained in this magazine does not constitute or form part of and should not be construed as, any offer for purchase or sale of

any product or service. While the information in the magazine has been compiled from sources believed to be reliable and in good faith, readers may note that the contents thereof including text, graphics, links or other items are

provided without warranties of any kind. Bombay Stock Exchange Brokers' Forum (BBF) expressly disclaims any warranty as to the accuracy, correctness, reliability, timeliness, merchantability or fitness for any particular purpose, of

this magazine. Bombay Stock Exchange Brokers' Forum (BBF) shall also not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the information or data contained in this magazine.

Any alteration, transmission, photocopied distribution in part or in whole or reproduction of any form of this magazine or any part thereof without prior consent of Bombay Stock Exchange Brokers' Forum (BBF) is prohibited.

Write to us: We would be happy to hear

from you! Do send in your suggestions,

feedback and comments via email to

forumviews@brokersforumofindia.com

Visit us: www.brokersforumofindia.com

Follow us on:

@bbfindia

/bbfindia

/Bsebrokersforum

/bbfindia

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.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40