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What people say about us! Whispers - A real think-tank for intellectuals exhibiting the green as well as red areas of the administrative machinery for consumption of all - Hats off. Neha Bindra POLITICS This is History (45) Difference between Dawood and Lalit ? Jhoote kahi ke ...nahi rahe kahi ke In UFA a Note was signed for NSAs to meet! NSAs were to meet to discuss terror!! From where has Hurriyat come in!! Sartaj meeting Hurriyat before the meet! Yes ..yes... by UPA this was always allowed! So net ..net... Pakis are down and out!! Paki Government has shown Pakistan is a sham Demoracy! ! Then Pakis have shown they cannot be relied! India let them get trapped in their own jaal!! Give adversary and foes a long rope!! Sartaj can come and if he meets Hurriyat !! Just now on TV News!! Hope now some Congi does not say!! Or Rahul says Ma came to my room at midnight! Amit Shah got stuck in a lift!! Arre Laloo ji bhool gaye kya!! Chalo Amit got stuck and then came out! Jitna mazaak karna karr lo Laloo!! VJS BUREAUCRACY No leave for 158 trainee IAS officers Ashok Prasad to retire in January next year Deputy Chief of Navy to retire in October Justice Ajit Singh appointed as Chief Justice,
Rajasthan HC Gauhati High Court gets 3 Additional Judges 23 IPS officers in Delhi Govt transferred 12 DANIPS officers in Delhi Govt transferred Tenure of Air India's CMD Rohit Nandan extended Tenure of DEC in ECI, Vinod Zutshi extended Tenure of Avinash Srivastava as Addl Secretry,
Agriculture extended Vishal Kapoor deputed as Director, Power Inderjit Kapoor joins as Tech Member, APTEL Dr. Anil Kumar is also ADG, Forest in Environment Sanjiv Kumar appointed Deputy Secretary, DoPT NV Raman Reddy repatriated to parent cadre BK Thacker appointed Director, Fire Prevention
Services in Gujarat Vatsalya Saxena appointed DDG, DG Shipping
office Vacancy of Joint Secretary in Biotechnology
in Sept. Vacancy of Director, ISTM in Sept. Sandeep Arya appointed DCM, Bangkok Jose Kumar Rozario deputed to CRIS as Manager Amit Gupta deputed to RITES as GM, Mumbai Subhash Chand Gupta deputed to RITES as GM,
Gurgaon 3 IRS-IT officers at CCIT level to attend
training programme at Bostan Yashwant Kumar deputed to MP Govt (UPDATED) CORPORATE Interview - Ashishkumar Chauhan From trading under a banyan tree to PJ Towers BSE Ltd, the 140 year old stock exchange that introduced equity culture in to India has come a long way from a group of brokers trading under a banyan tree to its office in the PJ Towers that is the most well-known symbol of Indian stock markets. Over the years, the exchange has transformed itself into a professionally run exchange, on par with the best, in the technology used. Ashishkumar Chauhan, the Managing Director and Chief Executive Officer of the BSE in chat with Editor of Whisper in the Corridors, Sanjay Sharma , outlines his plans for the exchange and discusses on the recent developments in equity markets. What is the road ahead for Bombay Stock Exchange like? Any exchange has to figure out its role in the context of the society it operates in. The main issues before India today are improving manufacturing, creating jobs, improving defence and so on. The exchange, in that context, has to figure out, as a public utility, what role it wants to play. Whether it wants to do relentless incessant trading which benefited only to few or help channelise the savings of the economy in to industry and manufacturing. Over the last 15 years exchanges have become more dependent on transaction volumes since they charge transaction charges and that has made them dependent on new derivative products. Internationally equity volumes have fallen 70 to 80 per cent since the financial crisis. Derivative volume fell but they have recovered and increased over last few years. Even in India most exchanges have transaction volumes as their main source of revenue. BSE has taken a call to work more on improving investment climate and instrument for investment vis- a vis trading and speculation. We have 95 per cent market share listing in SME stocks. People ask me, "how is the volume on this platform?" There cannot be much volume on this platform as each company has only 100 to 200 investors. It is an investment product. Almost 95 to 98 per cent of offers for sale have been done through the BSE. In mutual fund platform too we have 97 per cent share. Our recent success in currency derivative is a case in point that BSE can compete in trading product also and successfully at that. Do you think the SEBI - FMC merger is a game changer ? BSE had already announced the plan to set up a commodity exchange last year prior to their announcement. In the mean time we have set up two companies, for commodity exchange and clearing corporation. Now this merger of FMC & SEBI has been announced. We are awaiting clarity on regulatory frame-work, whether it will be a new platform on existing exchanges or new exchanges need to be set up. We see this as part of the implementation of the FSLRC recommendations; that has a much broader perspective. It is certainly a game changer. Practises in the commodity segment will become stream-lined and rationalised. Many market participants operate on both segments, many intermediaries use the same technology platforms for commodities and equity. There are therefore many advantages to the industry through this merger and also to investors. Minimum criteria for becoming a member, capital adequacy etc will be rationalized. It will become easier to understand the trading, clearing and settlement mechanism in the commodity segment after this merger. All these will have ramification for the long-run, for the better. How will the new international financial centre being planned in the GIFT city work? You are going to set up a subsidiary there? We are setting up a new exchange. The model is being worked out. We are still waiting for regulations relating to the Companies Act, taxation etc to be issued. Once the guidelines are out, BSE along with its partner, Deutsche Borse, will set up a new exchange and clearing corporation in the GIFT City. It will be a separate jurisdiction with separate taxation, legal frame-work and so on. We have to start with capital of Rs 25 crore in the exchange and take it to Rs 100 crore over three years. Similarly for clearing corporation we have to take the networth to Rs 300 crore over three years. These are the guidelines laid down by SEBI. It is an interesting opportunity for those who trade in Indian products in Singapore, Dubai , Europe and US. Many of them might want to trade on this offshore platform that offers greater flexibility. We may be able to bring back some volume and business. But the main purpose is to gather investment for Indian companies. Indian companies can raise equity as well as debt from this IFC. How has the retail participation been of late? It has improved a little. But it is a long way from where it should be. In 20 years of automation we have not really added any new investors although we have improved considerably on the transparency in trading, clearing and settlement. In some sense not having added new investors has been our failure. We have not been able to reach out to the masses. We have to learn from the Jan Dhan experience. The perception that market is risky is the main draw-back. If you see over the last 140 years, we have offered only risky products - equity. In the last 15 years we have given riskier products - derivatives. We have not given risk-free products. India saves about 30 per cent of its GDP but only 10 per cent comes to financial instruments. If we provide risk-free products to masses, they may not get enticed to get in to informal investment and finance channels. The government can do IPOs of government bonds on exchanges through offers for sale or other mechanisms where the cost of raising funds are extremely low. If we are able to offer risk-free instruments like government bonds to masses, we might take the market penetration from 2 to 25 per cent in the future. Government can also raise funds much more easily through markets than they can from banks. SEBI has announced a new platform for start-up companies. Do you think it will work? It will be an investment driven product because here too the lot size is going to be large. This is a constant dilemma that regulators and exchanges face - meeting the needs of an enterprise while protecting investors. Many of the small companies that raise money invariably do not succeed in the long run and get labelled as vanishing companies, as it happened in early nineties. Post-1995, BSE and other exchanges decided not to have small companies approach the market and the listing criteria were tightened. But later the government realized that small companies also have legitimate needs to raise funds for their growth. So the SME platform was introduced. To protect small investors, the lot size was fixed at Rs 1 lakh so that very small investors do not buy the stocks and those who do have the wherewithal to understand the risk they are taking. Since this model was prepared it has been successful, with more that 100 companies listed on the SME platform, about 95 on the BSE itself. The platform for start-ups is another step being taken in the same direction to allow a particular kind of company to approach the market but in such a way that their potential failure does not hurt investors. These are ways to help the company first go public and then help them migrate to the main platform. In that context the platform for high tech companies is a welcome step. What are your thoughts on the call auction in illiquid stocks? That has been almost removed. Earlier there were almost 2,200 stocks now only few stocks remain. This is mainly due to change in regulation. No liquidity has come in. In the same breath you should be asking the question whether there ought to be call auction on closing prices in liquid securities. For me it is an interesting conundrum. All the mutual funds value their NAV at the closing price. The derivatives are also valued at closing price. There have been several issues reported there. To arrive at the right closing price, closing call auction on closing prices can be used.
Kapoor steps down as Director (Commercial)
of NTPC Ltd Prabakar appointed Nominee Director of Seshasayee
Paper and Boards Ltd Chandilya made MD of AirAsia India Agarwal resigns as Whole-time Director of
Akzo Nobel India Ltd Sharma appointed CS of Alchemist Ltd Mittal appointed Director of Alchemist Ltd Ms Patel appointed Director of Maruti Infrastructure
Ltd Ms Sureka appointed CS of Rexnord Electronics
& Controls Ltd Jani appointed Head ( TV Partnerships) of
Twitter India? FORUM (The views expressed in this column are of the contributors. We do not owe any responsibility, whatsoever, of the views of our surfers as they are their personal opinion. However, we would also request our contributors not to be personal, directly or indirectly, in presenting their views. Instead of countering the views which ‘X’ has already expressed, our contributors are advised to present their own views. Also be brief, say about 200 words at the most since any views longer than that if eliminated at our end would carry the risk of the contrbutor’s item losing its original essence) Govt. should show teeth Sometimes the Government should show some teeth and teach such traitors a lesson, who dare to hoist Pakistani flag on the Independence day of that country as also address rallies organized by a wanted terrorist via phone. Safiya Andrabi and Ali Shah Gilanee do not deserve any indulgence. Their defiance and provocative actions are encouraging the trouble makers in Kashmir. Aarti Khosla Copyright of wisdom They retire to start a new career in the government by being absorbed here and there as they and their brethren have the patent and copyright of wisdom and indispensability. A Saxena Mismatched work allocation Mismatch in work allocation in GoI(WIC 19.8.15): Yes the mismatch in allocation of work/Deptt/Ministry on Central deputation to GoI affects the efficiency of Officer. Just imagine an Electronics Engineer being posted in Agriculture Ministry. What work will he perform there? Will he take full interest in a field in which he has never worked and he has no interest? But it seems ACC/CSB does not bother about 3 options given by officer in the application form and his field of experience or interest. Application of mind (not just casual/routine approach) is essential for extracting maximum efficiency and maximum output from an officer on Central Deputation. Technocrat Nothing much untoward What an immature post by O P Sharma. He has diluted the gravity of sexual harassment issue by labeling it as "procedural lapse" Shireen Bhatia
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Dr
Suresh Mehrotra has his lips sealed, if you have any whispers then send it to
us | |||||||||
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