Finance Conclave 2019

Financial Conclave 2019: Indian Financial Market - The Road Ahead

Event: GNIMS Finance Club presents Financial Conclave 2019

Guest Speakers: Dr. Bhalchandra Mungekar, Mr. N. S. Venkatesh, Mr. Sahil Malik

Panelists: Mr. Hitesh Sethia, Mr. Abhijit Vaidya, Mr. Vijay Bhambwani, Mr. Sachin Chandiwal

Date: 18th January 2019, Friday

Venue: 4th Floor, Multipurpose Hall, New GNIMS Building

GNIMS organises Finance Conclave every year to provide a forum to the academics and scholarly experts and practitioners to share their knowledge for holistic development of the students. The topic of the previous financial year’s conclave was based on the “Significance of Safeguarding Financial Institutions” and in 2018 the theme was “Chinese Currency Devaluation and its Impact on Indian Economy”

In the words of Sir Adrian Cadbury, “Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, corporations, and society.” It is all about “Intellectual Honesty” and not just sticking to rules and regulations. In the last 20 years, corporate governance in the Banking sector has changed drastically. Companies with institutionalized governance practices were better able to withstand the onslaught of 2019. Both equity and debt markets were affected by governance issues in the year gone by, which is expected to renew focus on responsible investing, going forward. For Corporate India, the past 12-18 months have been difficult. With economic growth slowing, achieving business targets has been stretching managements, with a few opting for short-term fixes. The meltdown of two large non-banking financial companies (NBFCs) impacted the flow of funds. With stretched liquidity and a weakened real estate sector, the asset quality of several NBFCs came under scrutiny. The purpose of corporate governance in banking sector without any doubt build and strengthen the accountability, credibility, trust, transparency and integrity. If there won’t be any regulatory watchdog which regulates the governance of the banks then banks can decide things by their own whims and fancies. Similarly for corporate industry, the purpose of corporate governance is to facilitate effective, entrepreneurial and prudent management that can deliver the long term success of company. With all stock, debt and banking industry being affected by corporate governance practices in 2019, will 2020 mark a positive shift in India’s corporate governance is what the economy is interested in knowing.

Sub Theme: –

• Transparency

• Independent Oversight

• Accountability

• Conflict of Interest

• Ethics Violation.

The Chief Guest invited for this auspicious occasion was Dr. Bhalchandra Mungekar – a charming Indian economist, Educationist, Social Worker and Rajya Sabha member. Being occupied with political commitments in Delhi, he made time from his busy schedule to visit GNIMS.  This institute held a place of significance in his heart for various reasons. First reason was that it being named after the great Saint Guru Nanak. It triggered his memories of visiting Suvarna Mandir during the times when he was member of the planning commission; where he was honored by Siropa (traditional robe of honor) which was usually given to President/PM/Vice President and likewise. Second reason being the building of Khalsa College was designed by Dr. B. R. Ambedkar, whom he admired vastly throughout his life. He shared a special incident in his idol’s life when he was stuck in dilemma over choosing Sikhism as a religion to follow before accepting Buddhism. He praised Guru Granth Sahib as one of the latest religious sacred text while drawing similarities between Guru Nanak’s teaching and Saint Namdev’s teachings.One thing that concerns us all in today’s tumultuous times is the current scenario of our Financial Markets and what the future holds for the young as well as experienced investors. SGPC’s Guru Nanak Institute of Management Studies (GNIMS) has an active Finance Club catering to the students’ requirements for career development. Since 2015, each year it has been conducting the Finance Conclave. It had come up with ‘Finance Conclave 2019: Indian Financial Markets – The Road Ahead’ as a platform to spread knowledge about the current developments in Financial Markets.

Chief Guest, Director Sir and Guest speakers sitting on the stage sharing a talk together

He expressed his happiness over the Institute’s initiative behind organizing such important events like the Finance Conclave, every year since 2015. After visiting GNIMS, he got nostalgic about his time served as the Vice Chancellor of University. He recollected his practice of visiting at least one college every week and interacting with the students. While talking about the significance of Finance Conclave in relation to the Management Degree being pursued by the students, he got reminiscent about the time when he had sanctioned nearly 66 courses in the university of Mumbai (viz., BMS, MMS, BSc.IT, etc.) He also made a revolutionary move by diversifying the 100-year-old B.Com. degree into various specialization bachelor degree courses like Finance, Insurance, Management and likewise in 2002. He felt immense satisfaction when someone from Delhi or for that matter anywhere from the country informs him that there is a growing demand for the courses you started in 2002. He was also the pioneer in inviting industrialists to directly interact with students and faculties of Board of Studies framing the syllabus. He thought that Professors, Subject experts, Vice-Chancellors and Deans cannot just sit in Ivory towers and decide what is required in the economy, but rather require guidance of the Industry experts in charting out syllabus to meet Industry demands.

Dr. Bhalchandra Mungekar addressing the audience

He expressed his views over the political take since 1991 New Economic reforms brought in our country and the significance of the Planning Commission of India. Being closely associated with the Planning Commission as its member, he refuted the ideologies brewing in the minds of common people as a misunderstanding of Indian economy. They thought that before the reforms Indian economy was a socialist economy and in 1991 it became a market economy.  After 1951, when we started Economic Planning, Indian Economy was always Market Economy. Even big economists fell prey to this misunderstanding. When right to property is granted as a fundamental right in the constitution, where land which was giving 50% of the total GDP in 1951, where 72% of the people working in the economy were in agricultural sector. When nearly 90% of the income was coming from private sector. How economy can be called a socialist economy? Before 1991, it was Market economy guided and regulated by the state. After 1991 when we started L, P, G the State role was pushed aside and market was given prominence. This is called in technical Political Economic language as Ascendancy of Market – Market driven economy where the role of State was marginalized.

Quoting himself as the student of Ricardo, Adam Smith, John, Marshall, Schumpeter and Keynes he fully understood Market economy and hence he boldly Challenged the decision of PM Narendra Modi on abolishing the Planning Commission as a blunder made under the pretense of it being a sigil of Socialist economy. For organizing anything for instance this event it requires planning, even the capitalist economy requires planning. America is a free market economy but most regulated one…there is fundamental difference between regulation and control. We don’t need counter productivity, anti-growth controls of the economy but this doesn’t mean you shouldn’t have regulations. He also discussed about the establishment of RBI in 1934-35 and how the idea behind it already reflected in Dr. Ambedkar’s thesis study papers.

Panelists discussing at the Panel Discussion

If economy is not working properly then why stock market is booming? Those who understand elementary economics must know that the health of the economy is not reflected by the stock market at all. Stock exchange is just functioning based on expectations with no scientific base but historical data. He elucidated the meaning of Market by giving comparing our stock exchange and NYSE, by stating that market is not where buyers and sellers physically meet but just the interaction and transactions mechanism among them.  Those who have studied Keynes general theory of employment, interest and money wrote in 1936 and pulled the world out of depression. He emphasized the faculties and students interested in making careers or knowing economics must read this book as it doesn’t consist of numbers and figures yet it is one single formula for solving a problem.

He even highlighted the employment situation in our country from past to the current scenario by narrating his own struggle when he was looking out for jobs and started working in RBI. Mungekar took us through a journey from 1935 establishment of RBI as a regulating body for the Financial Institutions to the bitcoin era using modern technology. He made aware of the threat the economy is facing of educated unemployment and this the need to constantly upgrade ourselves with relevant knowledge.

Mr. Venkatesh sharing his experiences and observations of development of MF industry… And the transition of securities trading from personal telecalling investments to electronic trading. He talked about the recent mergers of Vijaya Bank, Bob and Dena Bank. He also mentioned how we have followed New Zealand with the inflation targeting by central Bank.

Students listening intently to the speakers

Mr. Sahil Malik extended the securities related talk from Venkatesh Sir’s speech, briefing the audience about Indian securities market. He compared international statistics for currency depreciation and other facts & figures in his presentation. He emphasised on the dire need of cyber security in the dynamic online trading market. He also shared his thoughts on the youth power of our country and the savings power we are blessed with. He praised SEBI as a regulating body and it’s role in the markets and the reason of choosing SEBI over any banking institution as his career choice. He informed about the achievements of SEBI viz., shortening time period to get listed (T+12days) and simultaneous International listing, investor awareness programs for teachers, students and general public, foundation of NISM with 400 crores worth infra & acknowledged NSE Academy’s certification program at GNIMS. The importance of a regulator and the role of fiduciaries in ceasing the frauds and scams in the market were highlighted in his speech.

A sumptuous lunch was organised for the speakers, panelists, faculty and students alike. The post lunch session

comprised of an interesting Panel discussion and Q & A Session. Mr. Abhijit Vaidya (Executive Director, Kotak Investment Banking) was the moderator of the Panel discussion on Indian Financial Markets – the road ahead. He and Mr. Sachin Chandiwal (Head Corporate Finance – GEVP Merchant Banking Yes Securities) shared their views on the advancements in the Financial markets as Investment Bankers. Panelist Mr. Vijay L Bhambwani [Founder, Promoter – Bhambwani Securities Pvt. Ltd. (TV Personality)] presented his views on the current Financial markets scenario with his background in neuro-behavioural sciences. Mr. Hitesh Sethia (Chief Knowledge Officer, Knowledge Wisdom) was the young voice amongst the dignitaries’ present; who talked about the prospective financial products and Financial markets being knowledge driven as opposed to the common notion of it being speculative market.

Dr. Milind Dalvi from TimesPro delivering the thank you note

The session was a gamut covering majority aspects of finance and a round of Q & A, wherein Students asked questions ranging from Algo-Trading to the fundamental financial products like SWAP trading. Thank you note was given by Dr. Milind Dalvi from TimesPro and Prof. Kapil Bhopatkar. All the certificates were couriered to the guests from corporate and other institutes.