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`15/-|MARCH 2020 VOLUME: 8 • ISSUE NO. 12 •|BOMBAY STOCK EXCHANGE BROKERS' FORUM (BBF) MUMBAI, INDIA

FORUM VIEWSWe pray for China's victory against novel coronavirus epidemic

One World One BBF

48

R.N.I. No. MAHENG/2012/47145Postal Registration No. MCS/153/2019-21 • MR/Tech/WPP-355/South/2019-21

st rd thPublished on 1 (Day) of every month • Posted at Patrika Channel Sorting Office, Mumbai - 400001 • Posting date: 3 & 4 of every month

2

UTTAM BAGRI HEMANT MAJETHIA HARIN MEHTA RAJIV CHOKSEYChairman | BBF Vice Chairman | BBF Secretary | BBF Jt. Treasurer | BBF

BCB BrokeragePvt. Ltd.

VenturaSecurities Ltd.

M/S. V. C.Mehta

KRChoksey Shares& Securities Pvt. Ltd.

EXECUTIVE COMMITTEE

GOVERNING BOARD MEMBERS

Anjana Vijay Shah Anup Gupta Cyrus Khambata Hemant Desai Jay Toshniwal Kamlesh JhaveriV.P.L. Shah Share &Securities Pvt. Ltd.

Sykes & RayEquities India Ltd.

PaytmMoney Ltd.

Concept SecuritiesPvt. Ltd.

Toshniwal EquityServices Ltd.

JhaveriSecurities Ltd.

Ketan Marwadi Madhavi Vora Naresh Rana Neeraj Choksi Nirav Gandhi Nithin KamathMarwadi Shares& Finance Ltd.

ULJK SecuritiesPvt. Ltd.

Vishwas FincapServices Pvt. Ltd.

NJ IndiaInvest Pvt. Ltd.

JM FinancialServices Ltd.

ZerodhaSecurities Pvt. Ltd.

Paresh Shah Parth Nyati Pradeep Gupta S. P. Toshniwal Sandeep Nayak Santanu SyamPCS

Securities Ltd.Swastika

Investmart Ltd.Anand Rathi Share

& Stock Brokers Ltd.ProStocks Centrum

Broking Ltd.Angel

Broking Ltd.

Sunil Sarda Vineet Bhatnagar Vivek GuptaSystematix Shares& Stocks India Ltd.

Phillip Capital(India) Pvt. Ltd.

GEPL CapitalPvt. Ltd.

3 FORUM VIEWS - MARCH 2020

BOMBAY STOCK EXCHANGE BROKERS’ FORUM (BBF)GOVERNING BOARD 2019 - 20

KUSHAL A. SHAHJt. Secretary | BBF

RatnakarSecurities Pvt. Ltd.

LALIT MUNDRATreasurer | BBF

Suresh RathiSecurities Pvt. Ltd.

5

Philosophy & Self-Management:A life of purpose40

CEO & COO DESK06


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. BSE Brokers' Forum expressly disclaims any warranty as to the accuracy, correctness, reliability, timeliness, merchantability or fitness for any particular purpose, of this magazine. BSE Brokers' Forum 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 BSE Brokers' Forum is prohibited.

Printed, Published and Edited by Dr. VISPI RUSI BHATHENA, PhD (h.c.)& Dr. V. ADITYA SRINIVAS on behalf of BSE BROKERS' FORUM,

printed at KSHITIJ PRINTERS, 49, Parsi Panchayat Road,Ashok Ind. Estate, 1st, Floor, Andheri (East) Mumbai - 400 069.

and published from BSE BROKERS' FORUM, 808 A,P. J. TOWERS, DALAL STREET, FORT, MUMBAI - 400 001.

Editor: Dr. V. ADITYA SRINIVASDesign by: Harshad Gajera | Photographer: Sanjeev Dubey

BBF Steering CommitteeUttam Bagri (Chairman)

Hemant Majethia (Vice-Chairman)Harin Mehta (Secretary)Lalit Mundra (Treasurer)

Kushal A. Shah (Jt. Secretary)Rajiv Choksey (Jt. Treasurer)

Compliance Calendar March 202024

MAY 2019 CONTEMarch 2020 CONTENTS

Follow us on: @bbfindia /bsebrokersforum/brokersforumofindia /bsebrokers’forum

Write to us:We would be happy to hear from you! Do send in your suggestions, feedback and comments via email to

[email protected] | Visit us: www.brokersforumofindia.com

Present challenges in the domesticand international context16

20 Asia-Pacific Marketsmonthly highlights and insights

12 your questions answered:Financial Planning(National Pension System (NPS))

Circulars 28

Wellness Q&A:Water works41

Healing Institute:Detox in 10 days43

Sabka vishwas (Legacy DisputeResolution) Scheme, 201932

Digital payment systems in india:opportunities and challenges35

Regulatory Pulse 26

Budget 2020: Incentives andconcessions to internationalFinancial services centre (ifsc)

34

Seminars & Events conducted by BBF for theprogress of stakeholders of Capital MarketsJanuary - February 2020

42

The effects of dispersion in carbonintensity scores on carbon-efficientportfolio construction

18

14 your questions answered:Is registration underMSME advantageous?

Digital lendingan emerging trend38

08nd

2 Global Connects:India Investment OpportunityJapan 2020


ceo & coo message

WelcomeDr. Vispi RusiBhathena,PhD (h.c.)

to magazine.Forum Views

Indian markets witness roller coaster ride on the budget day and post trading days with the markets crashing by 1000 points on the budget day and then recovering within next two trading sessions. The budget was the key driver for the volatility of the markets. The various provisions of the budget especially related to the income tax slab rates gives the taxpayers options to invest in Section 80C and continue with the old rates. If they forego 80C investment, then go with the new slab rates. This created some panic among the financial stocks since their business may take marginal hit. The budget gave lots of fund allocation to various sector and aims to increase ease of doing business.

Dr. Aditya Srinivas

BBF - Social Responsibility Initiatives | Blood Donation

Camp at S.R. Luthra Institute of Management | Surat,

Gujarat

China has reduced travel and has shut its public places. This slows down the China GDP and thus in turn the world economy, as China accounts for 9.3 %

The world economy has also taken hit due to the coronavirus threat which has originated from China and has spread to around 23 countries in the world. The world economy is likely to witness slowdown as

contribution in the world GDP.

RBI as expected kept the Repo rate unchanged at 5.15% in fact, the RBI monetary policy focussed on giving push to Auto sector, Commercial Real Estate and MSME sector by allowing

banks to lend them without counting that amount in CRR (Cash Reserve Ratio). The retail inflation has reached to 7.35% which is way above the RBI target inflation base of 4% (+-2%). This leaves little room for the RBI to reduce the interest rates in a already slowing economy.

The key question in the economy is witnessing lack of demand which is attributed to various factors like less job creation, corporate job losses which has put pressure on the demand side as people are not confident to take housing loan, car loans etc. The percentage of Indian paying taxes are around 4% which creates imbalance when it comes to contribution in the economic growth via taxes being paid.

On the BBF front:

BBF Seminars and Events

TopicDate

Seminar on Portfolio Management /Investment Advisors - Recent RegulatoryDevelopments / ChallengesSeminar on Opportunities at IndiaInternational Exchange

20 Jan

18 Feb

Blood Donation Camp at S.R. Luthra Institute of Management | Surat, Gujarat (January 18, 2020)

Bombay Stock Exchange Brokers'Forum (BBF) | Industry Partner

Post-Event Coverage

7

nd2 GLOBAL CONNECTS

JAPAN 2020

BOMBAY STOCK EXCHANGE BROKERS' FORUM (BBF)

In support with Tokyo, Japan

India Investment Opportunity

20th - 21st January, 2020

8

BOMBAY STOCK EXCHANGE BROKERS' FORUM (BBF)GLOBAL CONNECTS

SUMMARY

Summary of 2nd Global Connects Japan 2020India Investment Opportunity

The Bombay Stock Exchange Brokers Forum (BBF) successfully hosted the 2nd BBF Global Connects India Investment Opportunity at Tokyo, Japan in January 2020. This was in continuation with the positive response received post the BBF Global Connects - South Korea and Japan in Jan - Feb 2019.

The Embassy of India, Japan and Japan Securities Dealers Association (JSDA), the Self Regulatory Organization (SRO) of securities firms in Japan, acted as local support partners for the event. Invest India, National Investment Facilitation Agency, Government of India, acted as the India support partner.

The program was conducted on 20th and 21st of January 2020 at the Vivekanand Culture Centre Auditorium, Embassy of India, Tokyo, Japan. Day 1 (20-Jan) was the public seminar followed by Day 2 (21-Jan) of one to one meeting(s).

The Indian delegation comprised of the marquee names from the Indian Capital Market Industry represented by India International Exchange (IFSC) Limited (INDIA INX), SBI Mutual Fund, Stockholding Corporation of India Limited, Motilal Oswal Financial Services Limited, SMC Global Securities Limited, Invest India and office bearers of BBF.

We had the honour of presence of the Indian capital market regulator, Securities and Exchange Board of India (SEBI) represented by Shri Achal Singh, General Manager, Foreign Portfolio Investors (FPI) & Custodians.

HIGHLIGHTS• The conference was attended by more than 70 participants comprising of banks, sell side and buy side representatives, institutional

investors and securities companies from across Japan covering discussion on India's economic outlook from international perspective, structural changes, and the opportunities presented in Indian markets.

• The galaxy of speakers at the program included H.E. Hon. Shri Sanjay Kumar Verma, Ambassador of India to Japan and representatives from Securities and Exchange Board of India, Financial Services Agency - Japan, Ministry of Finance - Japan, Tokyo Stock Exchange, Daiwa Securities - Japan along with many experts on Indian Markets.

KEY TAKEAWAYS• There is tremendous interest in Investing in India, reinforced by the turnout at the event.• Capital gains tax for foreign investors is acting as a big hurdle for fund accounting. For the same reason, Japanese firms are preferring

investing through SGX, Singapore.• The option of coming in the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT) City along with

option of segregated nominee account structure was very much appreciated. • There seemed to be a lack of awareness on Voluntary Retention Route introduced by Reserve Bank of India last year for foreign investors.• There is a proposal for engagement between exchanges of both jurisdictions to promote listing of ETF’s through India-Japan ETF

Connectivity.• Japanese firm(s) have shown interests towards issuance of Samurai Bonds for Indian corporates.

Going AheadBBF proposes to issue literature from time to time on operational aspects of investing in India in local languages.

We shall continue our endeavors to improve awareness of Investment Opportunities in India in general and Indian Capital Markets in particular across the globe. We are committed to make this an annual event and the 3rd Global Connects Japan is proposed tentatively in Feb 2021.

9

Day 1 - Monday, 20 January 2020

Day 2 - Tuesday, 21 January 2020

Timings Particulars

10:00 - 2.00 pm One-on-one Meetings

(by appointment)

Entities/ Persons Venue

Indian Delegation Indian Embassy

Timings Particulars Entities/ Persons Venue

Meeting Rooms at

Indian Embassy

VCC Auditorium,

Embassy of India,

Tokyo

Indian Embassy

09:30 - 11:30 am

01:00 - 1:30 pm

01:30 - 01:40 pm

01:40 - 01:45 pm

01:45 - 2:00 pm

02:00 - 3:10 pm

03:10 - 3:20 pm

03:20 - 4:30 pm

04:30 - 5:40 pm

05:40 - 5:50 pm

06:00 pm onwards

One-on-one Meetings

(by appointment)

Registrations & Welcome

Welcome Remarks

Opening Remarks

Presentation

Panel Discussion 1

Economy and Markets

Session chair - Navneet Munot

Chief Investment Officer

SBI Mutual Fund

Networking Break

Panel Discussion 2

Investment Opportunities in India

Session chair - V Bala

MD & CEO, India International

Exchange (IFSC) Limited (India INX)

Panel Discussion 3

Facilitation and Regulation

Session chair - Hideaki Imamura |

Director, Research Division,

International Bureau,

Ministry of Finance, Japan

Closing Remarks

Networking Dinner

Indian Delegation

-

Uttam Bagri | Chairman, BBF

Mario Takeno | Vice-Chairman, JSDA

Sanjay Kumar Verma | Ambassador,

Embassy of India, Tokyo

Achal Singh | General Manager,

Securities and Exchange Board of India

V Bala | MD & CEO, India International

Exchange (IFSC) Limited (India INX)

Dr. Satya Pal Kumar | First Secretary

(Trade) Embassy of India, Tokyo

Vineet Potnis | Head Business

Development - Custody, StockHolding

Navneet Munot | CIO, SBI Mutual Fund

Ion Mizuno | Director, Head of APAC &

South Asia, International Debt Origination

Daiwa Securities Co. Ltd.

Prerna Soni | Sr. AVP, Invest India

So Hirai | Deputy Director,

International Affairs Office, Financial

Services Agency (FSA)

Achal Singh | General Manager,

Securities and Exchange Board of India

Ryo Takagi | Head-Global Strategy

Hemant Majethia | Vice Chairman, BBF

Japan Exchange Group, INC

R Anand | Vice President, StockHolding

Mona Khandhar | Minister (Economic

& Commerce), Embassy of India, Tokyo


PROGRAM FLOW

Program Flow

10


GLIMPSES

Glimpses of India Investment Opportunity

2nd Global Connects Japan 2020

Interaction of Indian Delegation with Mona Khandhar | Minister (Economic & Commerce),Embassy of India, Tokyo and Bhagirathi Behera | First Secretary (Eco), Embassy of India, Tokyo

H.E. Shri Sanjay Kumar Verma,Ambassador, Embassy of India,Tokyo delivering Opening Remarks

Shri Achal Singh, General Manager,Securities and Exchange Board ofIndia during key note presentation

Panel - 1 Economy and Markets Panel 2 - Investment Opportunities in India

Panel 3 - Facilitation and Regulation

11


AYUSH AGGARWALCIO (Chief Investment Officer)SMC Private Wealth

Among all the retirement investment options like EPF,

PPF, NPS or Mutual Fund; NPS is the only option which provides

a disciplined and long term investment approach as other retirement investment options

can be 100% withdrawn before the retirement age.

FINANCIAL PLANNING (NATIONAL PENSION SYSTEM (NPS))

5. What are the investment choices available to NPS account holder?The NPS offers two approaches to invest subscriber’s money. Subscriber has a liberty to select any of the two below mentioned approach:

• Active choice - Individual Funds • Auto Choice – Life Cycle Fund

In Active Choice, subscriber has an option to actively decide as to how his NPS pension wealth is to be diversified among Equities, Government securities, Fixed Income securities other than Government securities and Alternative Investment Schemes including instrument like CMBS, MBS, REITS, AIFs, InvIts etc. However the maximum allocation to equities and alternatives are 75% & 5% respectively.

While in Auto Choice, according to the age of the subscriber a predefined portfolio has been constructed by the PFRDA. Below mentioned three life cycle funds are available under this Auto Choice:

Number (PRAN) is issued by Government of India to each subscriber.

There are two types of account NPS offers i.e. Tier I & Tier II, Tier I account is a default account with the objective for retirement saving. However, the Tier II account is a voluntary savings account and one cannot open Tier II without opening Tier I account.

4. How many types of NPS accounts PFRDA offers?

Particulars

Status

Withdrawals

Tax exemption

Minimum NPS contribution

Maximum NPS contribution

NPS Tier-IAccountDefault

Not permitted

Up to Rs 2 lakh p.a.

(Under 80C and 80CCD)

Rs 500 or Rs 1,000 p.a.

No limit

NPS Tier-IIAccountVoluntary

Permitted

None

Rs 250

No limit

1. What is National Pension System (NPS)?National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. PFRDA launched National Pension Scheme “NPS” in the year 2004. Initially NPS was introduced to new government employees (except armed forces), whereas from 2009 it was opened for all Indian citizen to get benefits on voluntary basis.

2. How NPS works?

3. Who can subscribe to NPS?

In NPS, the contributions of the subscribers are pooled into pension funds which are invested by the PFRDA regulated professional fund managers as per the guidelines issued by the PFRDA. Professional fund managers invest in the diversified portfolios which are mix of Equities, Government securities, Fixed Income securities other than Government securities and Alternative Investment Schemes including instrument like CMBS, MBS, REITS, AIFs, InvIts etc. LIC, SBI, UTI, HDFC, ICICI Kotak, Reliance and Aditya Birla are some of the PFRDA regulated professional fund managers for NPS.

Any citizen whether a resident or NRI within the age group of 18 to 65 years can open a NPS account. NPS account is opened for the Subscriber and unique Permanent Retirement Account


Ayush Aggarwal is the CIO (Chief Investment Officer) at SMC Private Wealth and a Director at SMC Group. His opinions are carried out by prominent business channels like CNBC Awaaz. His articles have also been published by reputed groups like economictimes.com. He is also known for his knack of identifying high potential as well as fundamentally strong companies. HNI clients at SMC have gained significantly from the practical and far sighted approach of Ayush.

He is an avid reader and his love for reading keeps him abreast with latest happenings in financial sector. A graduate from the prestigious Delhi University, He is also an MBA from S.P. Jain Institute of Management and Research, Mumbai.

Investment NPS ELSS PPF FD

Lock-in period

Risk Profile

Expected Returns

Charges

Asset AllocationMixTaxation atMaturityPrematureWithdrawal

TillretirementRelativelyLowAs perMarketLow

Yes

LumpsumTaxfreeYes

3 years

High

As perMarketRelativelyHighNo

LTCG@10%No

15 years

Risk-free

Fixed

N.A

No

Taxfree

Yes

5 Years

Risk-free

Fixed

N.A

No

Taxable

Yes

Vesting Age < 60 years Vesting Age = 60 years

• Up to 20% of Corpus can be withdrawn in lump sum

• Balance amount to be invested in Annuity

• If the Corpus is <= 1 lakh, entire amount can be withdrawn in lump sum

• Up to 60% of Corpus can be withdrawn in lump sum

• Balance amount to be invested in Annuity

• If the Corpus is <= 2 lakh, entire amount can be withdrawn in lump sum

7. Are there any income tax benefits while contributing to NPS?

8. Can onepartially withdraw from NPS in between?

Yes, another benefit for opting NPS is taxation; it allows investors to avail tax benefit of INR 50000 under section 80 CCD (1B) which is over and above INR 1.5 Lakh under section 80 C. Apart from 80 CCD (IB) benefit, in case of salaried investor, contribution by the employer to the extent of 10% of the salary (Basic and Dearness Allowance) is also exempt from taxable income of the employee under section 80CCD (2) of Income Tax Act, 1961.

Yes, upto 25% of the contribution made by the subscriber as on date of application of withdrawal can be withdrawn.It is allowed after 3 years from the date of opening of NPS account. Please note that there are only three partial withdrawals allowed during the tenure and that too for specific purposes like Higher Education, Child’s marriage, buying home or treatment of Critical illnesses etc.

10. What would be the tax treatment at the time of withdrawal?

11 Why NPS is important?

Redemption of 60% accumulated corpus in the Tier I account of NPS is fully tax-free, however the annuity received from rest 40% amount of investment in annuity plan would be taxable as per income slab of the investors. Taxable annuity is the only drawback of this product.

All the investment and redemption tax benefits are available only in Tier I account and Tier II account is treated as income.

Retirement planning is one of the most important parts of financial plan. A well structure retirement plan ensures that a person proudly lives self dependent without compromising on their standard of living during advancing years. With the given understanding, government of India established Pension Fund Regulatory and Development Authority “PFRDA” to develop and regulate pension sector. NPS is so flexible and offers a range of investment options and choice of Pension Funds (PFs) for planning the growth of the investments in a reasonable manner and monitor the growth of the pension corpus. Subscribers can switch over from one investment option to another or from one fund manager to another.

An investor can consider NPS as one of the best options available in the market for retirement planning as it provides additional tax benefit, low cost, simple, portable and well regulated. Apart from this, it also gives a mix of asset allocation choice according to the risk profile of the investor. There is no doubt that the NPS has a capability to generate better returns as compared to any other retirement investment options in the long term. NPS is transparent and cost effective wherein the subscriber would be able to know the value of the investment on day to day basis. The ultra low-cost structure of the scheme makes it an ideal vehicle for long-term savings.

• LC75 - Aggressive Life Cycle Fund: In this Life Cycle Fund, the exposure in Equity Investments starts with 75% till age 35 and gradually reduces as per the age of the subscriber.

• LC50- Moderate Life Cycle Fund: In this Life Cycle Fund, the exposure in Equity Investments starts with 50% till age 35 and gradually reduces as per the age of the subscriber.

• LC25 - Conservative life cycle fund: In this Life Cycle Fund, the exposure in Equity Investments starts with 25% till age 35 and gradually reduces as per the age of the subscriber.

The default auto choice if the subscriber is not choosing any of the above option is Moderate life Cycle Fund.

Among all the retirement investment options like EPF, PPF, NPS or Mutual Fund; NPS is the only option which provides a disciplined and long term investment approach as other retirement investment options can be 100% withdrawn before the retirement age. However in case of NPS only an investor can withdraw 60% of the accumulated corpus in Tier I account of NPS after attaining 60 years of age and rest 40% of the corpus should be utilise to buy an annuity plan.

6. How one can compare NPS with other Investment Options?

9. When one can exit from NPS?Subscriber can exit from the Scheme after 10 years of account opening or attainment of 60 years of age whichever comes first.


7. Exclusive purchases and sheltering from competition:

8. Market assistance from the government and Export Promotion:

As part of the MSME Market Development Assistance scheme, the Central Government follows a Price and Purchase Preference policy under which more than 358 items are listed for exclusive purchases by Central Government from medium, micro and small units only.

The Government of India organizes several exchange programs, craft fairs, exhibitions, and trade-related events internationally. Being categorized as a micro, small or medium enterprise gives access to all of these platforms for international cooperation on trade-related aspects with different countries and fosters new business connections. The government also incentivizes export of goods and services by MSMEs by way of subsidies, tax exemption, and technical support.

avail 50% subsidy for patent registration by making application to respective ministry.

Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy as may be prescribed by the government in this behalf. Enterprises that have MSME Registration Certificate can avail Concession on electricity bill by making application to electricity department along with MSME Registration Certificate. Since MSMEs is a sector generating employment and giving entrepreneurial ventures a boost, the government also identifies training sectors for MSME and gives capital grants for improvisation of the infrastructure and support for entrepreneurial development.

Enterprises that have MSME Registration Certificate can claim reimbursement of ISO & HACCP Certification expenses by making application to respective authority.

In order to enhance the cost-effectiveness and promote clean energy use in manufacturing, the government reimburses project costs towards these goals for MSME sector units and also expenditure incurred for implementation of clean technology, preparation of audit report and subsidies for licensing products according to national and international standards.

4. Concession in Electricity Bills, Eligible for Industrial Promotion subsidy and Other Capital Grants

5. Reimbursement of ISO Certification charges

6. Technology and quality upgradation support to MSMEs:

Sejal Shah, Advocate• Working as an Advocate in the field of Taxation - Direct & Indirect.

Specialisation in GST. Handling Tax Litigation upto High Court.• Currently working independently after experience at Ramesh M Shah & Co,

Chartered Accountants after completing LL.B. from Government Law College.

• After Completing B. Ed. & M.B.A. a brief stint as an Educationist with Aditya Birla World Academy, Mumbai

• Member of various sub-committees of The Goods and Services Tax Practitioners’ Association of Maharashtra (GSTPAM) and Social commitment- Honorary Secretary at Jain Advocates Federation (JAF).

• Contributor to Beginners’ Book on GST Law to be Published by GSTPAM.• Athlete participating in various marathon runs all across the Country.


IS REGISTRATION UNDER MSME ADVANTAGEOUS?

The Union Government of India has provided many

benefits for small scale units or medium small and micro

enterprises (MSME). In order to be eligible to get these

benefits, any entity should register itself as MSME/SSI

enterprise under MSMED Act. Following is a list of such

advantages of obtaining SSI/MSME registration in India.

The Ministry of Micro, Small and Medium Enterprises

gives protection to MSME Registered Business against

delay in payments from Buyers and right of interest on

delayed payment through conciliation and arbitration and

settlement of dispute be done in minimum time. If any

micro or small enterprise that has MSME registration,

supplies any goods or services, then the buyer is required

to make payment on or before the date agreed upon

between the buyer and the micro or small enterprise. In

case there is no payment date on the agreement, then the

buyer is required to make payment within fifteen days of

acceptance of goods or services. Further, in any case, a

payment due to a micro or small enterprise cannot

exceed forty-five days from the day of acceptance or the

day of deemed acceptance. In case of failure by the buyer

to make payment on time, the buyer is required to pay

compound interest with monthly interest rests to the

supplier on that amount from the agreed date of payment

or fifteen days of acceptance of goods or service. The

penal interest chargeable for delayed payment to a

MSME enterprise is three times of the bank rate notified

by the Reserve Bank of India.

1. Protection against delayed payments

SEJAL SHAHTax & Legal ConsultantsSejal M. Shah & Associates

Advocate

Enterprises that have MSME Registration Certificate can avail

50% subsidy for patent registration by making

application to respective ministry.

Top 8 Advantages of MSMEregistration for your Business

2. Credit linked Guarantee Scheme / Collateral Free loans from banks:The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the GOI to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, Government of India and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the

Credit Guarantee Fund Scheme for Micro and Small

Enterprises. Enterprises that have MSME Registration

can avail benefit of 1% exemption on interest rate on OD

as mentioned in the scheme (this is bank dependent).

Enterprises that have MSME Registration Certificate can

3. Subsidy on Patentregistration as high as 50%


INSIGHTS - ECONBUZZINSIGHTS - ECONBUZZ

c o n s e q u e n c e s o f e c o n o m i c decoupling.”

The gap between awareness on one hand and action on the other is not surprising given the fact that it takes time to switch from one paradigm the currently predominant old resource intensive and less inclusive one. (although in some instances it has been largely exclusive) to the emerging more sustainable and inclusive paradigm of economic progress. In almost every nation the imperative of sustainability has begun to and would exert an increasingly significant influence on policy making and competitiveness. It is thus the ability and expediency of countries to make the adjustments to transition to the emerging paradigm of sustainable development that will clinch the `development destiny’ of nations.

In the next article for Econ Buzz I will talk about what I term as the Empowerment paradigm which basically describes the context within which sustainability considerations would be addressed. Evidently at this point for most nations much more needs to be done to put into place a

The influx of new technology that w o u l d h a v e g a m e c h a n g i n g implications for numerous sectors, the productivity slowdown that has impacted most nations-developed and developing and the slowdown in trade are some of the factors which constitute the configuration of change that has begun the transition to a new paradigm. At the recent World Economic Forum in Davos the increasing cognizance and apprehension about various aspects of economic sustainability was manifest as was the fact that even as the exigencies staring at us in the fact remain largely addressed. The WEF Global Risks report 2020 explains, "Powerful economic, demographic and technological forces are shaping a new balance of power. The result is an unsettled geopolitical landscape - one in which states are increasingly viewing opportunities and challenges through unilateral lenses. What were once givens regarding alliance structures and multilateral systems nolonger hold as states question the value of long-standing frameworks, adopt more nationalist postures in pursuit of individual agendas and weigh the potential geopolitical

context that would embody the enabling factors for trajectorythat would lead to sustainable development. In various articles for Econ Buzz even as I have enumerated certain aspects of sustainability such as the environment it is evident that despite the rising costs of pursuing a path that is becoming costly, obsolete and unviable.

Piya Mahtaney completed her second Master’s in Development Economics from Leicester University in England she embarked on a career in journalism with the Times of India. She was an assistant editor in Metropolis on Saturday, subsequent to which she joined as senior feature writer in Economic Times. As an economist that reported, analyzed and wrote on a wide range of socio-economic issues, writing a book about economic development and the emerging trends of globalisation seemed almost inevitable

The books that she has authored are as follows:• India China and Globalization (2nd ed), Palgrave

Macmillan (England), December 2014• Globalization and Sustainable Economic

Development, Palgrave Macmillan (U.S), August 1st 2013

• Institute of South East Asian Studies (Singapore) published an edition (August 2010) of my book India China and Globalisation.

• The first edition of India China and Globalisation was published by Palgrave Macmillan (England, 2007)

• Globalisation Con Game or Reality was published by Alchemy Publishers, India (2004) 2004.

• The first book titled Economic Con Game, Development fact or Fiction was published by Pelanduk Publications (Malaysia) in 2002.

A worrying aspect of the sluggish growth trend is that even if the

recovery in emerging and

developing economy growth takes place as expected, per

capita growth will remain below

long-term averages and will advance at a pace too slow to meet

poverty eradication goals.

PRESENT CHALLENGES IN THE DOMESTIC AND INTERNATIONAL CONTEXT

By Professor Piya MahtaneyEconomist / Author


INSIGHTS - ECOINSIGHTS - ECONBUZZ

observations about the fact that the budget lacked the measures that would spur a quick revival of growth.

tax rates, initiatives directed at expanding the bond market are some of the measures that would have a significant impact on kick-starting the investment cycle. Furthermore the present budget needs to be viewed in conjunction with the measures that were announced over the preceding six months Admittedly the revival of economic growth would be catalysed by expedient implementation of policy measures and it is this that needs to be emphasized. If budget announcements had lent more clarity to measures that would expand employment creation and increase the productivity of farming along with an enumeration of immediate priorities that would kick start the investment cycle this would certainly have been useful. Plausibly the specifics would become more evident over the ensuing period.

Country contexts differ however the common thread is the deficiency of investment across most developing and less developed nations according to the Global economic prospects report, "A worrying aspect of the sluggish growth trend is that even if the recovery in emerging and developing economy growth takes place as expected, per capita growth will remain below long-term averages and will advance at a pace too slow to meet poverty eradication goals. Income growth would in fact be slowest in Sub-Saharan Africa - the region where 56 percent of the world’s poor live.’’ In so far as addressing present and ensuing challenges the crux lies not merely in increasing economic growth rates but ensuring that per capita income rises at a rate that will step up poverty reduction which is one of most crucial imperatives going forward.

Notably the declining growth of the Indian economy is largely the result of fall in investment that is not recent but one that is rooted in structural factors that have manifested at least over the last decade and a half. and this in turn has led to a downturn in investment. Had the Finance Minister pursued the route of short termism it is very likely that she would have countered criticism about being short sighted. The emphasis on rural development, the infrastructure pipeline, the incorporation of a tax charter that would decriminalize taxation related offences, earlier reductions in corporate

The main objective of this article is to elucidate present challenges in the domestic and international context. I proceed to begin the discussion with a reference to the recently announced budget. The immediate reaction of many commentators and experts to this budget was that it fell short of providing the much needed impetus or stimulus to an economy that finds itself in the throes of a slowdown. A convenient reason for criticism (not without its political undertones) however it does reflect that important lessons from the past have been overlooked in so far as the costs of providing stimulus to an economy without due consideration to its fundamentals. The most illustrative instance of this is the Global Financial Crisis of 2008 which was the culmination of a credit binge that was based on a laxity of macro prudence and regulatory weakness that occurred in a backdrop of increasing polarization and a corrosion of infrastructural amenities. By a differing extent and across various contexts the underlying causes of the recession and slowdown in other developed nations were quite similar and it certainly heralded the end of quick fix short term stimulus measure and would leave in its trail volatility and prolonged slowdown which has taken almost a decade to reverse and the costs of which continue to be borne by the weaker and poorer segments of society. Clearly if this is case with developed nations, the adverse implications of what I term as` bubble growth’ (having also unravelled itself in some developing nations) is obvious. Taking thus a broader and I daresay more incisive perspective of the underpinnings of growth is entailed before drawing half baked

Akash Jain is part of the Global Research &Design group at S&P Dow Jones Indices, which is responsible for conceptualizing and developing new investable index-based products across different asset classes. He represents S&P Dow Jones Indices at media engagements, conferences, and other client events.

He is an integral part of Asia Index Private Limited, which is a partnership between S&P Dow Jones Indices and BSE Limited (formerly Bombay Stock Exchange).

He joined S&P Dow Jones Indices in 2016.He has been in the financial markets for more than six years, including at Deutsche, Credit Suisse, and Edelweiss, with experience in both the buyside and the sellside. He has worked extensively in researching, back-testing,and trading portfolios across different asset classes.

He attained his Bachelor of Technology (B.Tech) degree from Indian Institute of Technology (IIT Bombay) and holds a Masters of Business Administration (MBA) from Saïd Business School (University of Oxford).


INSIGHTSINSIGHTS

Exhibit 1: Relative Dispersion (Co-Efficient of Mean Deviation) of Carbon Intensity Scores within Each Sector across Seven Pan-Asian Markets

Source: S&P Dow Jones Indices LLC and Trucost ESG Analysis. Data as of March 16, 2018. Past performance is no guarantee of future results.Carbon intensity score measured in CO2e/USD 1 million.

Relative dispersion = where x_i represents the CI score of each stock.Table is provided for illustrative purposes.

ENER

GY

MA

TER

IALS

IND

US

TR

IALS

CO

NS

UM

ERD

ISC

RET

ION

AR

Y

CO

NS

UM

ER S

TAP

LES

HEA

LTH

CA

RE

FIN

AN

CIA

LS

INFO

RM

AT

ION

TEC

HN

OLO

GY

TEL

ECO

M.

SER

VIC

ES

UT

ILIT

IES

RE

AL

ES

TAT

E

AUSTRALIA 0.7 0.8 1 0.5 0.7 0.3 0.5 1.5 0.4 0.8 0.5

CHINA 1 0.8 0.9 0.6 0.8 0.3 0.4 0.6 0 0.9 0.1

INDIA 0.5 0.9 1.1 0.6 0.8 1.3 0.7 0.3 0.6 1 0.1

JAPAN 0.4 0.8 0.6 0.6 0.7 0.3 0.5 0.6 0.4 0.5 0.6

SOUTH KOREA 0.1 0.6 0.9 0.6 0.6 0.1 0.7 0.9 0.3 0.9 NA

TAIWAN 0 0.9 0.9 0.5 0.7 0.4 0.5 0.6 0.4 NA 0

HONG KONG 1.1 0.9 1 0.6 0.6 0.3 1.7 0.9 0.7 1.1 0.5

nx=i x-xi

x,

10 15 20 25 30 35 40 45 50 55 60

MA

RK

ET

RELATIVEDISPERSION

Exhibit 2: Sector-Wise Carbon Intensity Score with Market Capitalizationof Base Universe Constituents in India

Source: S&P Dow Jones Indices LLC and Trucost ESG Analysis. Data as of March 16, 2018. Measured in CO2e/USD 1 million. Size of the bubble represents the float market capitalization of the stock. Chart is provided for illustrative purposes and reflects hypothetical historical performance. Please refer to Appendix B in the research paper for benchmark indices used for each market. The stocks below the green line represent the carbon-efficient basket, whereas the stocks above the orange line represent the carbon-inefficient basket for the March 2018 rebalance.


A company’s carbon efficiency is measured by its carbon intensity score (C.I. score), provided by Trucost,

which is defined as the greenhouse gas (GHG)

emissions from a company’s direct operations and first-

tier suppliers, measuredin metric tons of carbon

dioxide equivalent (CO e) per 2

USD 1 million of revenue (CO e/USD 1 million).2

THE EFFECTS OF DISPERSION IN CARBONINTENSITY SCORES ON CARBON-EFFICIENT PORTFOLIO CONSTRUCTION

By Akash JainAssociate Director - Global Research & DesignS&P Dow Jones Indices

INSIGHTSINSIGHTS

weighted C.I. score for the carbon-inefficient tertile basket was 4,106 CO e/USD 1 million, whereas the market-cap-2

weighted version of the C.I. score was 2,689 CO e/USD 1 2

million (see Exhibit 2),implying that the large-cap companies in India had lower C.I. scores in the carbon-inefficient basket. Despite dominance by large-cap companies in the market-cap-weighted portfolio, a reduction in the weighted average C.I. score for the carbon-efficient portfolios versus their respective carbon-inefficient portfolios remained significant across all markets. (see Appendix E in our recent research paper).

n this blog, we investigate the dispersion of carbon intensity scores in detail and its effect on carbon-efficient Iportfolio construction via equal-and market-cap-weighted

approaches. A company’s carbon efficiency is measured by its carbon intensity score (C.I. score), provided by Trucost, which is defined as the greenhouse gas (GHG) emissions from a company’s direct operations and first-tier suppliers, measured in metric tons of carbon dioxide equivalent (CO e) 2

1per USD 1 million of revenue (CO e/USD 1 million). Some 2

sectors, by nature of business, such as such as Utilities, Materials, Industrials, and Energy are carbon inefficient (higher C.I. scores) while other sectors, such as Financials, Information Technology, and Consumer Discretionary, are more carbon efficient.

C.I. scores can be widely spread even within the same sector. 2Relative dispersion is a metric that allows us to measure this

spread by normalizing across sectors and markets. The relative dispersion seen across the seven markets studied for the March 2018 basket (see Exhibit 1) shows that, in most Asian markets, Materials, Industrials, and Utilities sectors had the highest relative dispersion. For example, Exhibit 2 shows that in the Utilities sector in India, the C.I. scores ranged from 23to 26,948 CO e/USD 1 million. Within the 2

Utilities sector, the stock with the lowest C.I. score belonged to a company involved with the generation and sale of renewable energy, whereas the company with the highest C.I. score was involved with the generation of power though coal and gas in addition to solar, wind, and hydroelectricity. This is of particular importance, as it enables a sizeable reduction of the weighted C.I. score even in sector-neutral portfolio construction approach (though to a more modest extent when compared with unconstrained approach, which does not limit active sector exposures). In India, the C.I. scores of the unconstrained and the sector-neutral carbon-efficient portfolios were 24 and 155, respectively. (see Exhibit 3 in our recent research paper).

The wide spread in C.I. score and market capitalization also affected the weighted average C.I. scores of the carbon-efficient and carbon-inefficient tertiles across markets. For example, in India, for the March 2018 basket, the equal-

1. Direct GHG emissions of an automobile manufacturer include the emissions from operation or production (e.g., welding, assembly of parts, painting, etc.), while the first-tier indirect emissions include emissions from supply chains and procurement, such as utilities, steel manufacturing, tires, spare parts, and business travel.

2. Relative dispersion = where x_i represents the C.I. score of each stock.nx=i x-xi

x,

This unique spread of C.I. scores within each sector in each market could drive investors to prefer constructing a carbon-efficient portfolio either via sector-unconstrained or sector-neutral selection processes. Furthermore, investors could opt to weigh equally, although those concerned with investability could potentially turn to the market-capitalization-weighing approach to portfolio construction in order to improve C.I. scores, and therefore preserve asset size scalability.

Key findings:

ASIA-PACIFIC MARKETSMONTHLY HIGHLIGHTS

AND INSIGHTS

• Greater China Q4 2019 M&A Summary

• Japan Q4 2019 M&A Summary

• Australia Q4 2019 M&A Summary

• M&A Activity By Country, Sector

• Initial Public Offerings

• Private Equity Investments & Buyouts

• Venture Capital Investments

• Coronavirus In China: Early Thoughts On The Economic Impact

• Recent S&P Global Credit Ratings Actions

• Market Attributes: Index Dashboard

Contact Information: If you have any questions relating to the content featured in the publication, please contact [email protected]

Disclaimer: Copyright © 2020 by S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved.

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S&P Global Ratings does not contribute to or participate in the creation of credit scores generated by S&P Global Market Intelligence. Lowercase nomenclature is used to differentiate S&P Global Market Intelligence PD credit model scores from the credit ratings issued by S&P Global Ratings.

S&P Global may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P Global reserves the right to disseminate its opinions and analyses. S&P Global's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P Global publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.


GLOBAL INSIGHTSGLOBAL INSIGHTS



M&A ACTIVITY IN ASIA PACIFIC: SELECTED COUNTRIESIn January 2020, China saw the most number of deals and the highest deal value in APAC. In the whole region, the number of deals and the deal value went down by 8% and 30%, respectively, in 2020 YTD, compared to 2019 YTD.

Source: S&P Global Market Intelligence as of February 1, 2020. Figures are based on M&A announcement dates. Includes both closed and

pending transactions as well as those without transaction values. Charts are provided for illustrative purposes.

Key Threshold (No. of Deals)

0 - 8

>8 - 48

>48 - 97

>97 - 145

>145 - 194

>194 - 242

No. of Deals and Value YTD Activity (20’ vs. 19’)

No. of Deals and Value by Country/Region (Jan’20)Country No. of Deals Value of Deals ($USDmm)

ChinaJapanAustraliaIndiaVietnamSouth KoreaSingaporeHong KongMalaysiaThailandPhilippinesIndonesiaNew ZealandTaiwan

242127818050443429231410883

13,852.509,804.602,656.901,380.90

153.81,360.908,753.701,325.50

156.31,196.50

352.9117.1128.7

0

20 YTD 19 YTD YoY Growth 20 YTD 19 YTD YoY Growth

Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019

YoY ComparisonThrough

Jan 31, 2020

Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020

No. of deals Value of Deals ($USDmm)

China -17% -43%Japan 124 2% 4,705 108%Australia 81 70 16% 2,657 3,525 -25%India 80 85 -6% 1,381 3,678 -62%Vietnam 50 31 61% 154 137 12%South Korea 44 61 -28% 1,361 7,298 -81%Singapore 34 39 -13% 7,198 22%Hong Kong 29 29 0% 1,326 5,735 -77%Malaysia 23 32 -28% 156 278 -44%Thailand 14 21 -33% 1,196 802 49%Philippines 10 2 353 - NAIndonesia 8 11 -27% 117 847 -86%New Zealand 8 10 -20% 129 10Taiwan 3 7 -57% - 207 -100%Total 753 815 -8% 41,240 58,763 -30%

242 293 13,852 24,344127 9,805

8,754

400%

1191%

INITIAL PUBLIC OFFERINGS BY COUNTRY

Source: S&P Global Market Intelligence as of February 1, 2020. Figures are based on public offerings offer date. Includes all closed transactions.

Tables are provided for illustrative purposes.

Key Threshold (No. of IPOs)

0

>0 - 8

>8 - 15

>15 - 23

>23 - 30

>30 - 38

China led the table with 38 IPOs and US$7,934.8mm raised in January 2020. Australia observed the highest YoY growth in both the number and the value of IPOs.

No. of IPOs and Value by Country/Region (Jan’20)Country No. of Deals Value of Deals ($USDmm)

ChinaIndonesiaHong KongAustraliaIndiaMalaysiaSingaporeSouth KoreaNew ZealandThailandVietnamJapanPhilippinesTaiwan

388544432111000

7,934.8071.894.221.23.632.635.117.98.67.52.6000

No. of IPOs and Value YTD Activity (20’ vs. 19’)


Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020

Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020

No. of deals Value of IPOs ($USDmm)

China 384%Indonesia 8 5 72 78 -8%Hong Kong 5 3 94 56 70%Australia 4 1 21 0India 4 5 -20% 4 19 -81%Malaysia 4 3 33 18 82%Singapore 3 2 35 26 37%South Korea 2 3 -33% 18 48 -63%New Zealand 1 - NA 9 - NAThailand 1 2 -50% 7 151 -95%Vietnam 1 3 -67% 3 14 -82%Japan - - NA - - NAPhilippines - - NA - - NATaiwan - 1 -100% - 19 -100%Total 71 50 42% 8,230 2,068 298%

38 22 73% 7,935 1,64060%67%

300% 4441%

33%50%


0

>0 - 10

>10 - 20

>20 - 29

>29 - 39

>39 - 49

Source: S&P Global Market Intelligence as of February 1, 2020. Figures are based on M&A announcement dates. Includes both closed and pending

transactions as well as those without transaction values. Tables are provided for illustrative purposes.

China ranked the first in the number of PE deals, while Australia surpassed it in the value of PE deals in January 2020. Australia saw the highest YoY growth in both number and the value of PE deals.

No. of Deals and Value by Country/Region (Jan’20)Country No. of Deals Value of Deals ($USDmm)

ChinaIndiaJapanSouth KoreaAustraliaSingaporeHong KongIndonesiaNew ZealandThailandVietnamMalaysiaPhilippinesTaiwan

4924211211511111000

1,375.901,217.60

456.4327.6

1,501.5096.7

030

31.20000


PRIVATE EQUITY INVESTMENTS & BUYOUTS: SELECTED COUNTRIES


Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020

Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020




VENTURE CAPITAL INVESTMENTS: NON BUYOUTS BY COUNTRYIn January 2020, China was the most active VC investments market in APAC, although it observed a YoY drop in VC activities. Compared to 2019 YTD, the whole region experienced a decrease of 38% in the number of deals and of 37% in the value of deals.


0

>0 - 13

>13 - 26

>26 - 40

>40 - 53

>53 - 66

Source: S&P Global Market Intelligence as of February 1, 2020. Figures are based on transaction announcement dates. Includes both closed and pending

transactions as well as those without transaction values. Non-buyouts will include all features except for leverage buyouts ( LBO), management buyout

or secondary LBO. Tables are provided for illustrative purposes.

No. of Deals and Value by Country/Region (Jan’20)


Country No. of Deals Value of Deals ($USDmm)ChinaIndiaJapanSouth KoreaSingaporeAustraliaIndonesiaThailandMalaysiaNew ZealandHong KongPhilippinesTaiwanVietnam

6644311310732110000

1,228.301,099.40

152.7126.4103.4666.4

341.29.14.50000


Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020

Jan 1, 2020 -Jan 31, 2020

Jan 1, 2019 -Jan 31, 2019


Jan 31, 2020


China -57%India 30 805 51%Japan 16 456 36South Korea 12 15 328 913 -64%Australia 11 6 79Singapore 5 4 97 720 -87%Hong Kong 1 1 - 2 -100%Indonesia 1 1 3 50 -94%New Zealand 1 - NA - - NAThailand 1 - NA 31 - NAVietnam 1 5 -80% - 9 -100%Malaysia - 3 -100% - 2 -100%Philippines - - NA - - NATaiwan - 1 -100% - 3 -100%Total 127 147 -14% 5,010 5,823 -14%

49 65 -25% 1,376 3,20624 -20% 1,21821 31% 1167%

-20%83% 1,502 1810%25%0%0%

China -61%India -18%Japan 153 58 164%South Korea 13 12 126 691 -82%Singapore 10 20 103 13Australia 7 8 72Indonesia 3 8 3 89 -97%Thailand 2 2 41 - NAMalaysia 1 3 9 2New Zealand 1 1 5 1Hong Kong - 7 -100% - 2 -100%Philippines - 1 -100% - 0 -100%Taiwan - 1 -100% - 3 -100%Vietnam - 10 -100% - 8 -100%Total 178 285 -38% 3,434 5,464 -37%

66 114 -42% 1,228 3,19044 62 -29% 1,099 1,33731 36 -14%

8%-50% 701%-13% 666 827%-63%

0%-67% 480%

0% 346%



MARKET ATTRIBUTES: INDEX DASHBOARD

• With the emergence of a coronavirus in China, concerns have increased about the impact on growth for the world’s second-largest economy. Despite China’s markets closing for the final week to celebrate the Lunar New Year, the S&P Pan Asia BMI declined 2.9% in January.

• Most of our reported Asian broad equity indices finished the month in the red, with the exceptions of Australia and New Zealand. The S&P/ASX 200 and S&P/NZX 50 Portfolio shrugged off the global equity sell-off, with gains of 5.0% and 1.6%, respectively.

• Hong Kong equities lagged their Asian counterparts; the S&P Hong Kong BMI finished January with a decline of 4.5%.

• Amongst sectors, 10 out of 11 sectors finished the month with declines. The only exception was Health Care, which gained 1%. Energy suffered as oil prices clocked in steep declines, the equity sector fell 8%, while the S&P GSCI Crude Oil fell 15%.

• All our reported Asian smart beta strategies followed the benchmark down. Enhanced Value was the laggard, dropping 8%. Momentum kept the losses to a minimum; it was only down 0.6%.

• In contrast to equities, our Asian fixed income indices closed January in the green. The S&P/ASX Australian Government Bond Index led the way up with a gain of 3%.

Summary

Source: S&P Dow Jones Indices LLC and/or its affiliates. Data as of January 31, 2019. Index performance based on total return. Returns for single country indices and single country strategies are in local currency, otherwise USD. Numbers in brackets are closing price levels for the corresponding indices. Charts and graphs are provided for illustrative purposes. Past performance is

not an indication or guarantee of future results.

-0.9%

-0.7%

-0.4%

-0.3%

-0.2%

-0.1%

-0.1%

-0.1%

-0.1%

0.0%

0.0%

0.0%

0.0%

0.0%

-1.00% -0.80% -0.60% -0.40% -0.20% 0.00% 0.20%

Australia

Pakistan

New Zealand

India

Indonesia

Malaysia

Singapore

Philippines

Thailand

Hong Kong

Taiwan

South Korea

Japan

China

S&P Pan Asia BMI Country ContributionJanuary 2020

S&P Pan Asia BMI(-2.9%)

25

HOW TO CHOOSESECURE WEBCASTINGSERVICES?

#ADVERTORIAL

By Siddharth BeraManaging DirectorEpitome Corporation Pvt. Ltd.

Contact us: [email protected]

Telephone: +91 98795 44338 Website: http://epitomesolutions.in

Log on www.epitomesolutions.in to know about the services they offer.

re you planning to produce a webcast? You must be aware Aof the ways you can stage

video production. You need to get the best shots of the event you are organizing and edit those to make a great video package. However, webcasting is completely different from that. You need to know how to distribute the video online. The challenge is even greater when you need to webcast live videos on the web channels. India based company Epitome Corporation Pvt Ltd offer your own secured channel or can also take the services of the secure webcasting services using which you can deliver a branded video streaming with full of security.

Why choose secure webcasting services?You may not be aware of all the technical details of webcasting a video on the Internet. That is the r e a s o n y o u s h o u l d c h o o s e webcasting service providers to take up the task for you. Webcasting services are around for a long time. There are quite a few good ones. However, you need to choose the best webcasting service provide who would provide secure webcasting services. There are certain important things that you need to consider while choosing such a service provider:

India based company Epitome Corporation Pvt Ltd

offer your own secured channel or can also take the services of the

secure webcasting services using which you can

deliver a branded video streaming with

full of security.

for a packaged solut ion for webcasting the videos of the company, you should choose hosted solutions. These service providers generally have their own cloud-based platforms. These platforms support the webcast distribution process. However, the webcasts will be managed by you by subscribing to their hosted solutions. If you produce webcasts too frequently, choosing this type of hosted services seems to be a viable solution to your video webcasting problem.

Secure webcasting will also broaden the online event experience. With the right services your events can turn into large virtual events for the target audiences to follow. The videos are often as big as online trade shows bringing a lot of details about the products and services to the potential customers. The virtual events are nowadays becoming the platform for attracting online customers and brand enthusiasts.

The foremost decision that you need to take is which of the company events you’d like to webcast. If it is a single live event about an important product launch or any special occasion in the company that you’d like the targeted audiences to know, you need to choose webcasting services. You need to measure whether this approach of webcasting will help to generate leads and revenue for the company. If it does, you should opt for live webcasting services.

If you have a certain in-house webcast expertise and yet are looking

FORUM VIEWS - MARCH 2020

Kamlesh P. Mehta B.Com. FCA, DISA (Post qualification course in information system audit from ICAI) is a practicing Chartered Accountant by profession having an experience of 24 years in the field of capital market compliance consultancy, depository services audit, management consultancy, system audit and Commodity market compliance consultancy.

He is a Proprietor of CA firm M/s. KAMLESH P. MEHTA ASSOCIATES & Partner of MEHTA SANGHVI & ASSOCIATES located at Borivali, Mumbai.

He along with his associated concerns specializes in Audit and Assurance Services of various compliance areas related to Capital Market Operations and system audits of broking industry.

He is also providing compliance calendar to BSE brokers forum and ANMI regularly and same is published in their journal. Recently he and his team had drafted compliance manual for commodity brokers published by BSE brokers forum.

He is a regular speaker of the various seminars for broking and DP compliances organized by WIRC (Western India Regional Council of ICAI) and study circle group.

COMPLIANCE REQUIREMENT FORTHE MONTH OF MARCH - 2020

Compiled by CA Kamlesh P. Mehta(B.Com, FCA, DISA)M/s. Kamlesh P. Mehta Associates

COMPLIANCE COMPLIANCE CALENDAR

24

Segment Particulars Due Date

BSE

All Equity & Commodity

Exchanges

PMS

All Stock Exchanges

All Exchanges

All Exchanges

NSE

Income Tax

Stamp Duty

Depositary


Exchanges

All Stock Exchanges

Income Tax


Exchanges

All Stock Exchanges


Exchanges

All Stock Exchanges

NSE

BSE

BSE- Uploading of margin funding file for the month of February 2020

Uploading of Clients’ Funds, collateral and other details lying with the member broker -

Week ended 28.02.2020

PMS- Uploading of activity report on SEBI Portal

Applicability of uploading of day-wise Holding statement in the specified standard format to exchange.-


Uploading clients’ fund balance and securities balances by the stock brokers on stock exchanges

system as per SEBI circular of Enhanced supervision.- Monthly basis.

Contingency Drill / Mock Trading Session (Subject to circular from respective exchanges)

NSE- Uploading of margin funding file for the month of February 2020

TDS Payment for the Month of February 2020 for Corporate and Individual.

Payment of Stamp duty: - Security and Commodity Exchanges

Submission of Investor Grievances Report • CDSL & • NSDL



Applicability of uploading of day-wise holding statement in the specified standard format to exchange. -


Advance payment of Income Tax









Discontinuation of VSAT services

No. of STR filed with FIU-IND for the month of February, 2020. (Including NIL STR)

01/03/2020 To

07/03/2020

04/03/2020

05/03/2020

05/03/2020

06/03/2020

07/03/2020

07/03/2020

07/03/2020

10/03/2020

10/03/2020

12/03/2020

13/03/2020

15/03/2020

18/03/2020

19/03/2020

25/03/2020

26/03/2020

31/03/2020

Before

31/03/2020


REGULATORY PUREGULATORY PULSE

Disclaimer :The newsletter is not in the nature of alegal opinion or advice. Copyright reserved.

Courtesy: Finsec Law Advisors A financial sector law firm which provides regulatory advice and assistance focusingon the securities, investments and banking industry. www.finseclaw.com

SEBI CIRCULAR ON ‘INC’ RATINGS AND WITHDRAWAL OF CREDIT RATINGS

cooperation by the issuer, the CRAs are required to review the instrumentsbased on ‘best available information’.

Besides the above, certain conditions for withdrawal of ratings by CRAs have also been modified. Previously, as per SEBI’s circular dated June 06, 2018, a CRA could withdraw its ratings for instruments which have been assigned multiple ratings, if i) such instruments have been rated by such CRA for a continuous period of five years or 50% of the tenure of the instrument, whichever is higher, and ii) an undertaking has been obtained from the issuer that ratingsare available on such instruments.

According to the new circular, ratings may be withdrawnfor instruments with multiple

ratings, provided theinstrumentshave been rated for three years or 50% of the tenure of the instruments, whichever is higher. Further, apart from an undertaking from the issuer, a CRA is required to obtain a no-objection certificate from 75% of the bondholders of the outstanding debt.

The above circular follows a string of measures recently imposed by SEBI to further reduce information asymmetry with regard to the financial health of listed entities. Previously, in November 2019, SEBI had mandated listed entities to make public disclosures regarding defaults in payment obligations towards loans, including revolving facilities such as cash credit, etc. which continue beyond 30 days.

On January 03, 2020, SEBI issued a circular directing credit rating agencies (CRAs) to downgrade ratings of an issuer to non-investment grade with ‘Issuer Not Cooperating’ (INC) status, if such issuer has all outstanding ratings as non-cooperative for more than six months.The circular further provides that if such non-cooperation continues for a further period of six months from the date of such downgrade, no CRA shall assign new ratingsuntil i) the issuer resumes cooperation, or ii) the ratings so assigned are withdrawn.

Under the SEBI (CRA) Regulations, 1999, issuers are required to cooperate with CRAs in order to enable them to arrive at a true and accurate rating and in case of non-

INFORMAL GUIDANCE BY SEBI ON DISCLOSURE OF ‘MATERIAL FINANCIAL RELATIONSHIP’

definition of material financial relationship included any kind of payment, such as loan or gift, not only monetary transactions but non-monetary transactions would also be covered for the purpose of disclosure of MFR. Further, it was clarified that in case a DP shares a MFR with one of his immediate relatives, the name of such relative must also be separately disclosed under category of persons with whom the DP shares a MFR.

The Applicant had also sought for clarifications regarding disclosure in certain situations. Out of these situations, SEBI clarified that the DP is required to make disclosures in the following instances: • If a DP makes payment of fees,

exceeding 25% of his annual income, on behalf of his granddaughter by directly depositing such amount in the University’s account (in case the granddaughter is a minor, the names of both the parents and the guardian must be disclosed in addition to that of the granddaughter);

• If a DP gifts a piece of land / an amount of INR 2 lakh to his / her daughter on her birthday, where the cost of such

land / the amount is more than 25% of the DP’s annual income;

• If a DP makes payment of fees, exceeding 25% of the DP’s annual income, for her niece’s higher education, where such fees will be repaid by the niece to the DP (without interest); and

• Where a DP undertakes to repay the financial obligation of a person which exceeds 25% of the DP’s annual income, where the actual payment is made over a period of two years.

Besides the above instances, SEBI clarified that no disclosures are needed where a DP’s relative sponsors a foreign trip for such DP, where the sponsorship exceeds 25% of such person’s annual income.

While the above disclosure requirements were introduced with a view to prevent insiders from funding relatives to trade on their behalf, they have fuelled concerns over breach of privacy and the extent of disclosures required. This clarificatory informal guidance will assist the DPs in making appropriate disclosures.

On January 03, 2020, SEBI issued an informal guidance to Gujarat State Petronet Limited (Applicant), inter alia clarifying when designated persons (DPs) are required to disclose details of persons with whom they share material financial relationships.

In December 2018, certain amendments were made to the SEBI (Prohibition of Insider Trading) Regulations, 2015 (PIT Regulations) which required DPs of listed entities, intermediaries and fiduciaries to annually disclose details of immediate relatives and persons with whom they share a ‘material financial relationship’ (MFR).

As per the PIT Regulations, MFR denotes transactions where a DP makes any kind of payment such as a loan or gift to any person during the preceding twelve months and such payment is equivalent to at least 25% of the DP’s annual income. However, payments based on arm’s length transactions are excluded from the ambit of MFR.

Pursuant to the queries raised by the Applicant, SEBI clarified that since the


REGULATORY PUREGULATORY PULSE

SEBI PROPOSES REVISED NORMS FOR INVESTMENT ADVISERS

will be charged by IAs for providing implementation services to advisory clients, either directly or indirectly, at the group / family level of the IAs. Further, it has been proposed that implementation services may be provided by IAs only through direct schemes / direct code in the securities market.

Ordinari ly, for recommendations involving equity or debt products, clients would require the services of a SEBI-registered stock broker. However, this proposal restricts receipt of all kinds of commissions by the IA and its related entities, including consideration in the form of a brokerage fee. Usually clients prefer a one-stop solution from wealth management groups, however, this provision would compel investors to look for separate service providers for implementation of the advice and also undergo the KYC process all over again.

Enhanced Eligibility Criteria Currently, either appropriate educational qualification or adequate professional experience is sufficient for individual IAs, principal officers and persons associated with IA, to apply for a registration as an IA. The consultation paper now proposes to mandate both educational qualification and experience before applying for registration. This will not only render a number of existing IAs (who are graduates with ample experience) unemployed, but also inhibit new aspirants and qualified persons from becoming IAs.

Increased Net Worth RequirementsFurther,SEBI has proposed to enhance the minimum net worth requirements for individual IAs from INR 1 lakh to INR 10 lakh, and for corporate IAs, from INR 25 lakh to INR 50 lakh. In our view, a minimum net worth requirement for intermediaries such as IAs, which do not have custody of clients’ funds or securities, is unwarranted. Further, mandating an individual to maintain such a high net worth is unreasonable, as it is more important for advisors to have appropriate resources at their disposal such as infrastructure, technology, human resources, etc., instead of a higher net worth.

Corporatization of IAsIt is proposed that individual IAs with more than 150 clients or assets under management (AUA) more than INR 40 crore shall compulsorily re-register themselves as a corporate adviser within six months of the trigger event. The above proposal is arbitrary and would dramatically increase the costs and burden of compliance for small players. A single or few high net-worth clients can together easily cross such a low threshold of INR 40 crore. Moreover, mandatory corporatization may put a vast majority of small-town IAs out of business.

FeesIt has been proposed that advisory fees should be based on AUA, capped at a maximum of 2.5% of the AUA. Alternatively, it is stated that a fixed fee should be charged at a maximum of Rs. 75,000/- per annum per family. In our view, while the capping should only be done on the percentage basis, additionally, SEBI may consider providing for an enabling provision for receipt of performance-linked fee from the clients.

Documentation of the terms and conditions of IA servicesUnder the present framework, execution of a written IA agreement is not mandatory. The consultation paper proposes that IAs must provide their clients a document detailing the terms and conditions of the advisory services, before any service is offered to such clients. The contents of such document have been broadly provided in the consultation paper, such as requirement of written consent from clients, description of the scope of services to be offered, inclusion of investment objective and risk factors, etc.

While the above proposal will provide a clarity on the terms of agreement however, the applicability of such provision with respect to the existing clients is unclear. Further, the requirement of a written consent should be construed in a manner to include electronic and digital confirmation, as a number of IAs provide their services in digital / electronic mode.

On January 15, 2020, SEBI issued a consultation paper ushering major reforms in the regulatory framework for investment advisers (IAs). Based on the recommendations of the working group constituted by SEBI, the consultation paper inter alia seeks to address the existing conflict of interest arising out of the dual role played by IAs providing distribution services as both agents of investors and manufacturers of financial products.

Some of the key changes proposed in the consultation paper are discussed below:

Segregation between client advisory and distribution activitiesCurrent ly, under the SEBI ( IA) Regulations, 2013, incorporated entities can provide both advisory and distribution services through separately identifiable department / division / subsidiary, and individual IAs are not permitted to provide distribution services. SEBI has now proposed that to segregate the two activities, a client can either be an advisory or a distribution client at the group / family level of the corporate / individual IA entities and a group / family can only receive consideration in the form of advisory fee or distribution commission from one client.

While this proposal may resolve the issue of conflict of interest between investors and their advisors, for existing clients availing distribution services under a regular plan, a switch to purely advisory services may lead to levy of exit load. Further, it is unclear as to whether the term ‘distribution’ is used in the context of mutual fund products only or other investment products too. We believe that recommending services of other financial service providers such as, portfolio managers, insurance agents, etc., should not be considered as distribution.

Implementation of Advice (Execution Services)Currently, an advisor can also provide execution services through separately identifiable department / division. Under the consultation paper it is proposed that no consideration, in the form of commission, referral fee, or otherwise,

ANALYZING CIRCULARS (05 JANUARY TO 01 FEBRUARY 2020)


Regulator Important Circular's Title For The Period

SEBI - REPORT FOR Report of the Working Group on Related Party Transactions -->> The Report includes Review of the policy space

PUBLIC COMMENTS relating to related party transactions including definitions, materiality thresholds and process followed by Audit Committee for approval ~~Review the provisions relating to related party transactions in the SEBI (LODR) Regulations, 2015 vis-à-vis the Indian Accounting Standards and the Companies Act, 2013. ~~ Format for periodic disclosure of related party transactions by listed entities. ~~Recommendations for strengthening the monitoring and enforcement of regulatory norms related to related party transactions. Comments may be sent by email to [email protected], [email protected] and [email protected] no later than February 26, 2020.

SEBI Format for Statement indicating Deviation or Variation in the use of proceeds of issue of listed non-convertible debt securities or listed NCRPs -->> Listed entities which have issued NCRPs, to submit the statement indicating deviation or variation on half yearly basis if any from March 31, 2020 within 45 days of end of the half year until such funds are fully utilized or the purpose for which these proceeds were raised has been achieved in specified format enclosed as Annexure.~~Further salient feature of the format such as Applicability, Frequency of Disclosure, Role of the Audit Committee is detailed in circular.

SEBI Guidelines for rights issue of units by a listed (InvIT)/ (REIT) -->> As per InvIT/REIT regulations Rights issue means an offer of units by a listed InvIT/REIT to the unit holders of the InvIT/REIT as on the record date fixed for the said purpose and providing guidelines in respect of a rights issue of units by a listed InvIT/REIT regarding Conditions for issuance, Appointment of merchant banker(s) and other intermediaries, Draft Letter of Offer and Letter of Offer, Application, Pricing of Units, Timelines, Manner of issuance of units, Subscription, Allotment and Listing of Units and Restriction on further capital issues.

SEBI/ BSE/NSE Options in Goods - Product Design and Risk Management Framework -->> Exchanges has to take prior approval from SEBI to launch ‘Option in Goods’ in addition to ‘Options on commodity futures’ in CD segment. Further, product design and risk management framework is enclosed as annexure.~~ Exchanges have to make mandatory disclosure, such as OI of top 10 largest participants/ group of participants and the details of combined OI (long and short) as per SEBI circular dated January 04, 2019 to public.

SEBI Exemption from clubbing of investment limit for foreign Government agencies and its related entities -->> SEBI has omitted the Regulation 20 (9) of FPI regulation, which was related to “Government of India entering into agreements or treaties with other sovereign Governments” by its amendment dated 19 December, 2019. SEBI by omitting the given regulation has ensured certain overseas government agencies and their related entities will be exempted from clubbing of investment limit that is applicable for foreign portfolio investors. ~~The exemption would be applicable where the Indian government has entered into agreements or treaties with overseas governments or there is an order. ~~The exemption is based on a rule under FEMA (Non-debt Instruments) Rules, 2019 regarding Investments by FPIs. Amended operational guidelines are enclosed as annexure.

SEBI Consultation Paper on Review of Regulatory Framework for Investment Advisers (IA) -->> To strengthen regulatory framework for IA and also empower IA to effectively discharge their responsibilities towards their investors, SEBI proposed CP as follows. There must be clear segregation between services for investment advice and distribution of the investment products, To enable IAs to distribute, they may obtain appropriate distribution registration.~~To ensure client level segregation at group/family level, IAs must have records of each client’s PAN details, family of clients would be reckoned as a single client.~~ IAs shall maintain on record an annual certificate from an auditor/ statutory auditor confirming compliance with the client level segregation requirements.~~In order to have transparency, it is proposed that IAs to ensure a document to the client detailing the terms and conditions of the investment advisory services offered to the client.~~) IAs must compliance with SEBI IA regulation and ensure eligibility criteria too , must aware to clients regarding their risk capacity and risk aversion.~~ IAs can charge fees to clients under modes such as Assets under advice (AUA) mechanism or Fixed Fees.~~IA to have PG degree from specified university/institute with prior experience of at least 5 years experience and for Non-individual IA should have 3 years experience.~~Individual to have minimum net-worth of 10 lakhs rupees and for Non individual minimum net-worth of 50 lacks rupees have to be complied within 3 years(also for existing IAs). ~~IA to complete compliance audit within 3 months from end of every F.Y. and reports with adverse findings and action taken needs to be submitted to SEBI within 1 month. i.e. on or before 31st July of every F.Y.

SEBI IPF Trust and Committees at Market Infrastructure Institutions (MIIs) -->> Norms for composition of IPF Trust to be uniformly applicable across Exchanges and Depositories and functions of IPF Trust to be applicable only to exchanges and depositories which needs to be to complied with the same within 3 months from January 28,2020.~~On account of amendments SECC Regulations, 2018 and SEBI (D&P) Regulations, 2018 with regards to names of committees at MIIs name of “Investor grievance redressal committee” to be read as “Grievance redressal committee” and “Member selection committee” to be read as “Member committee”.

SEBI/NSE Review of Margin Framework for Commodity Derivatives Segment -->> On account of wide variation of liquidity and volatility among different commodity derivatives, CCs to categories commodities into three categories of volatility based on realized volatility for last three years on as Low/Medium/High where Realized Annualized Volatility is 0 to 15%/Above 15 % to 20%/Above 20% respectively and the same to be reviewed once in every six months and Minimum IM and minimum MPOR for CDS revised based on volatility category, minimum initial margin and the details of the same is specified in circular.~~Further Initial categorization of commodities to be done by CC within 15 days from January 27, 2020.

SEBI Non-compliance with certain provisions of the SEBI LODR Regulations, 2015 and the SOP for suspension and revocation of trading of specified securities -->> SEBI amended the Listing Regulations in order to streamline the SOP for dealing with non-compliances and to protect the interests of investors would take actions for non-compliances with Listing Regulations as specified in Annexure I and follow SOP for suspension and revocation of suspension of trading of specified securities, as specified in Annexure II and further exchanges can deviate from taking action only after recording reasons in writing.~~Further providing details of action to be taken for ensuring strict and effective enforcement of Listing regulation.~~The amendments to come in effect for compliance periods ending on or after March 31, 2020 and SoP circular dated May 03, 2018 to be applicable till current SoP circular comes into force.

SEBI / CDSL / NSDL Streamlining the process of Rights Issue -->> SEBI has simplified the process of Rights issue by amending ICDR Regulations and LODR Regulations, and the changes in process are as follows: Advance notice to exchanges has been reduced to at least 3 working days from 7 working days.~~Issue of newspaper advertisement and intimation of same to exchanges for dissemination on their websites to be completed at least 2 days before the date of opening of the issue.~~Dematerialized of Rights Entitlements (REs) will be introduced, issuer to disclose the process of credit of REs in the demat account and renunciation thereof in letter of offer, REs to be credited to their demat accounts, separate ISIN to be credited to the demat account before the date of opening of the issue and physical shareholders are required to provide demat details to Issuer / Registrar for credit of REs within 2 working days before issue closing date.~~REs can be traded in exchanges with T+2 rolling segment, similarly as equity shares, and can be traded between opening of the issue to at least four days prior of closure. Further, investor can renounce their entitlements by trading on exchange platform or off-market transfer and the same will be settled through depository mechanism. Application to be made only through ASBA facility and withdraws are not permitted after issue closing date.~~The above are applicable for all rights issues and fast track rights issue where Letter of Offer (LoF) is filed with the stock exchanges on or after February 14, 2020.

SEBI SEBI (Portfolio Managers) Regulations, 2020 -->> PMS Regulations 2020 - Key Highlights are namely:1) Date of publication in the Gazette: 20 January 2020 2) Minimum Investment amount increased to 50 lakhs. Applicable to new clients and additional investments from existing clients.3) Minimum net worth of Portfolio Manager to be 5 cr to be complied in 3 years. 4) No Upfront fees (directly or indirectly) can be charged to the client. 5) Performance to be disclosed on an investment approach (segregated basis) using TWRR method. 6) Detailed client disclosures now to be made quarterly. Details of commission paid to distributors have to be disclosed. 7) Custodian mandatory for all Portfolio Managers except in case of advisory services. 8) Portfolio Manager cannot invest client’s funds based on the advice of any other entity. FPIs may avail of the services of a Portfolio Manager. 9) In addition to a Principal officer & a Compliance Officer, Portfolio Managers to also have at least one person with relevant experience in the securities markets. 10) The discretionary portfolio manager can invest client funds securities listed or traded on a recognized stock exchange, money market instruments, units of Mutual Funds and other securities as specified by Board from time to time, on behalf of their

CIRCULARSCIRCULARS


CIRCULARSCIRCULARS

clients. A Portfolio Manager offering non-discretionary or advisory services to clients may invest or provide advice for investment up to 25% of the assets under management of such clients in unlisted securities, in addition to the securities permitted for discretionary portfolio management.11) Leveraging through use of derivatives not permitted. 12) Off market trades not permitted except for certain specified conditions.

SEBI SEBI (LODR) Regulations, 2015 [Last amended on January 10, 2020] -->> Major Amendments of SEBI -LODR Regulations in the year 2018 and 2019 covered in amended regulations.

SEBI Operating Guidelines for Investment Advisers in International Financial Services Centre -->> Providing Operating Guidelines for Investment Advisers in IFSC regarding Applicability of SEBI IA Regulations, 2013 covering Registration of Investment Advisers for operating in IFSC, Compliance Requirements, Conditions and Restrictions, Qualification and Experience/ Certification Requirement, Net Worth Requirement.

SEBI Annual System Audit of Market Infrastructure Institutions -->> In order to keep pace with the technological advancements in the securities market, the existing System Audit Framework to be revised based on discussions with Exchanges, CC, Depositories (‘Market Infrastructure Institutions – MIIs), and recommendations of Technical Advisory Committee (TAC) of SEBI as follows.~~MIIs to conduct an Annual System Audit as per the framework enclosed as Annexure 1 and Terms of Reference (TOR) enclosed as Annexure 2 and further to maintain a list of all the relevant SEBI circulars/ directions/ advices, etc. pertaining to technology and compliance thereof, in a specified format and the same shall be included under the scope of System Audit.~~MIIs to submit information in a specified format regarding exceptional Major/Minor NCs in audit system and to categorically highlight open observations/NCs/suggestions pointed out in the System Audit (current and previous).~~Thereafter Audit Report to be placed before Governing Board of the MII which then along with comments of the Management to be communicated to SEBI within a month of completion of audit.~~However a declaration from the MD / CEO certifying the security and integrity of their IT Systems should be submitted along with an audit report by MII.~~ Further Details regarding Revised System Audit framework regarding Audit process, Auditor Selection Norms and Audit Report Guidelines and details regarding System Audit Program – Terms of Reference (TOR) is detailed in Annexure.

SEBI-PRESS RELEASE / Implementation of Section 51A of UAPA, 1967 - Updates to UNSC’s 1267/ 1989 ISIL (Da'esh) & Al-Qaida Sanctions List and UNSC’s 1988BSE / CDSL Taliban Sanctions List -->> Registered intermediaries should ensure that accounts are not opened in the name of anyone whose name appears

in updated list of individuals and entities which are subject to various sanction measures such as freezing of assets/accounts, denial of financial services etc., as approved by the Security Council Committee established pursuant to various United Nations' Security Council Resolutions (UNSCRs). Registered intermediaries shall continuously scan all existing accounts to ensure that no account is held by or linked to any of the entities or individuals included in the list.~~Registered intermediaries are advised to ensure compliance with the aforementioned instruction pertaining to UAPA and update the list of individuals/entities as circulated by SEBI .~~The UNSC press releases concerning amendments to the list are available at URL: https://www.un.org/securitycouncil/sanctions/1267/press-releases.Further Members to ensure client screening for clients before on boarding and all existing clients on daily basis

SEBI - PRESS RELEASE Facility to view status of/deficiency in claim applications and making good those deficiencies -->> Committee had provided the facility to view status of/deficiency in claim applications and making good those deficiencies of PACL through online portal https://www.sebipaclrefund.co.in which will be available from January 24, 2020 and the same can be done till July 31, 2020.

SEBI - INFORMAL GUIDANCE Informal Guidance request of Axis Bank Limited under SEBI (Custodian) Regulations, 1996 -->> As per Custodian Regulations, Custodian will not assign or delegate its functions as a custodian to any other person unless such a person is a custodian provided that a custodian may engage the services of a person not being a custodian, for the purpose of physical safekeeping of goods or gold belonging to its client including a mutual fund having a gold exchange traded fund scheme Subject to certain specified conditions.~~Further as per SEBI Regulation PM shall segregate each client's funds and securities and keep them separately from his own funds and securities and be responsible for safe keeping of clients funds and securities. “and further PM shall segregate each clients' listed securities and keep them in a segregated manner as per SEBI (Portfolio Managers) Regulations, 1993.~~Custodians will remain responsible for safekeeping, and processing / settlement of transactions, reconciliations at the time of transactions as well as periodic basis as agreed upon between the Custodian and PM and regulatory reporting for assets held in custody including reporting at segregated-assets mode at the underlying investor-level and should as ensure that physical communication/dividend warrants/ corporate action benefits sent by the issuers are received by the custodian.

SEBI-INFORMAL GUIDANCE Informal Guidance request of KCP Limited -->> As per LODR Regulation at least one independent director on the BOD of the listed entity shall be a director on the BOD of an unlisted material subsidiary, whether incorporated in India or not where material subsidiary" shall mean a subsidiary, whose income or net worth exceeds 20 % of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year.~~Hence Reg 24(1) of LODR requires KCP to appoint one independent director on the supervisory Board of KCP Vietnam although as per Law on Enterprises of Vietnam the Management structure of a Limited Liability Company in Vietnam does not require a BOD and the same is being managed by Members Council.

SEBI-INFORMAL GUIDANCE Request for Informal Guidance by way of an interpretive letter under the provisions of SEBI (Informal Guidance) Scheme, 2003 with respect to Regulation 24 read with Regulation 16 of SEBI LODR Regulation -->> As per SEBI LODR Regulation "Material subsidiary" mean a subsidiary, whose income or net worth exceeds 10% of the consolidated income or net worth respectively, of the listed entity and its subsidiaries in the immediately preceding accounting year and where At least one independent director on the board of directors of the listed entity shall be a director on the board of directors of an unlisted material subsidiary, whether incorporated in India or not. ~~ However as per SEBI LODR Regulation and companies Act "net worth" means the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.

SEBI-INFORMAL GUIDANCE Informal Guidance request of IPFII Singapore 4 Pte Ltd under SEBI (FPI) Regulations, 2019 -->> As per FEMA 20R, A FPI may purchase or sell equity instruments of an Indian company listed or to be listed on a recognised stock exchange in India subject to specified conditions But the same is being amended according to which FPI are permitted to invest in Indian securities as a person resident outside India.~~Further FPIs are permitted to invest in unlisted NCDs/ bonds issued by an Indian company subject to a minimum residual maturity of three years and end-use restriction on investment in real estate business, capital market and purchase of land. However custodian banks shall ensure compliance with given condition.

BSE/NSE Launch of Request for Quote (RFQ) in NDS-RST platform (BSE) and CBRICS platform (NSE) -->> Exchange to launch RFQ in debt securities with effect from, 03rd Feb 2020 and securities such as Corporate Bonds, Commercial Papers, Certificate of Deposit, Securitised Debt, Central Government Securities, Treasury Bills, State Development Loans and Municipal Bonds will be eligible for the same. Further have provided details regarding Eligibility and Registration of Participants, Terms and Conditions.~~ Operational Guideline and Application Form of RFQ is enclosed as Annexures. RFQ Platform will be hosted in NSE CBRICS from February 04, 2020.

BSE Number of partitions to be reduced from 2 to 1 in commodity/currency derivatives segment -->> TM to note that reduction in number of partitions from 2 to 1 is postponed to 17th February 2020 instead of February 10, 2020. Further ETI applications will be there in partition 2 for Session logon response till 14th February 2020.

BSE Rearrangement of Menus in Member Login -->> Rearrangement of menu for Mutual fund Trading application- requested to note that there is a change in New Reports menu in member login.

BSE Additional Validations in UCC- NRI & Minor-Update -->> Client registration authentication is for non demat New UCC only and not for Non-Individual UCCs. ~~Status will become active after 2 factor authentication. ~~ Link for authentication is valid for 5 days and details need to be entered again. ~~ Modification of clients can be done only before placing of orders, and after that by raising query in CRS module. ~~ Additional details can modified as the same process for New Registrations. ~~ For, Minor and NRI registration and TFA process are same, however with additional validations. Further, only one bank account is allowed per UCC for NRI/Minor. ~~ After authentication member must upload copy of cheque on the path specified and status will become Active after verification. Additional Validations in UCC, UCC-NRI & UCC-Minor shall go live on January 25, 2020.


CIRCULARSCIRCULARS

BSE SEBI directions w.r.t. listed Shell Companies – List of companies -->> Allied Computers International (Asia) Ltd, Indo Pacific Projects Ltd, PS IT Infrastructure & Services Ltd, Sanguine Media Ltd being shell company suspended w.e.f. Tuesday i.e. January 21, 2020 until further notice.

BSE / NSE Clarifications on maintenance of Register of Securities and Holding Statement -->> Exchange has provided a guideline for members to follows uniform practices while recording the transactions in the Register of Securities and Holding Statement.~~ Members need to maintain ROS as per specified format provided by exchange, Holding statement to be prepared on the basis of ‘Execution Date’.~~Securities shall continue to be recorded in the holding statement of the respective client till T+1 day in cases of EPI and illustration for the same is given in circular.~~ PAN to be mandatorily mentioned for every client transaction in the ROS and for every client in the holding statement, except in cases exempted by the Rules or Regulation and to be reviewed and check that correct PAN is uploaded in UCC database and PAN recorded in ROS & the holding statement should also match with it.

BSE Master Circular – Surveillance (Cash/Currency Derivative and IRD/ F&O) -->> Circular is consolidation of all the previous circulars issued by the Surveillance department in Equity segment.

BSE Revised eligibility Criteria for Listing of Broking Companies on SME Platform -->> Revised eligibility criteria for an entity registered as Stock Broker with SEBI intending to list on BSE SME platform are:~~Net worth of minimum Rs. 15 crores with PBT of Rs. 5 crores in any 2 years out of 3 F.Y. OR net worth of Rs. 25 Crores with profit(Extraordinary income will not be considered, which includes equity, Preference Shares, reserves and Surplus) in any 3 years out of 5 F.Y. (F.Y.-12 months).~~Net Tangible assets of at least Rs. 3 Crores as per the latest audited financial results.~~Post issue paid up capital of the Broking Member should be minimum Rs. 3 crores.

BSE Collection of Stamp Duty -->> Detailing about the rates of Stamp Duty to be levied and payable under specified segments as per recent gazette notification, Procedure for calculation as well as Methodology for computation of SD and collection of stamp duty at various level ,Pay in / Failure of Funds ~~Further a report containing information on SD liability at client/TM/CM level and computation of client wise SD liability to be provided to TM/CM at EOD in a specified format (enclosed as Annexure). ~~The same will be effective from January 09, 2020.

BSE Uniform Implementation of KYC requirements-FATCA & UBO Image -->> Facility is provided to upload FATCA UBO form for Non-Individuals & HUF on BSE StAR MF Platform and should ensure that file size is not greater than 4MB. ~~FATCA entry as well as FATCA & UBO image will be mandatory to place orders in Non-Demat mode.~~Details of Path to upload FATCA & UBO form, AOF/FATCA Image Download and FATCA Image Report are specified in circular.

BSE Master Checklist for listing requirements -->> To enable issuers/stakeholders access to all applicable checklist/requirements for listing/further listing/forfeiture etc., of securities at one place, Exchange compiles the checklists into a single Master Circular and displays this on an annual basis on the website at https://www.bseindia.com/corporates.html.

BSE / NSE Enhancement in File format for reporting of Trading Member-wise Collateral details by Clearing Members -->> File format for TM-wise details of Cash and Cash equivalent collateral is being revised and has been made more comprehensive, format is enclosed as Annexure with circular.~~Data to be uploaded in single file for all calendar days, except Sunday, separately for each of the aforesaid reporting, on or before the next four trading days of subsequent week.~~ Further, file format to incorporate additional column “Action” to indicate any changes in report submitted. “A” will be a default option in a column, but in case of revision members to upload file with incremental data and mention “D” for deleted records and “U” for updated records in “Action” column.

BSE / NSE Contribution by a non-defaulting member in the Default waterfall of Clearing Corporations (All segments) -->> Amendments to provisions to SEBI circular Dt August 27, 2014 regarding Clause 14 regarding Further Contribution to/ Recoupment of Core SGF and clause 16 regarding Default waterfall sub clause VII on basis of deliberations with Risk Management Review Committee (RMRC) of SEBI and various stakeholders is detailed in Circular

BSE / NSE Closure of Client Beneficiary Account maintained by TM -->> Members to close all irrelevant accounts other than ‘Pool account ( including ‘Early Pay-in’),‘Client Margin Trading Securities account’ and ‘Client collateral account’ latest by January 16, 2020, If failed Exchange to issue suitable directions to freeze such accounts for both debits & credits and securities shall not be transferred directly from the Client Securities Account to Client Collateral/ Collateral account.

BSE / NSE Levy of Stamp Duty on trades reported in Negotiated trade reporting platform (NTRP) and ENIT -->> TM to furnish daily by 18.00 hours details of deals reported in Negotiated trade reporting platform and ENIT under Corporate Bonds category not settled through CC through email for trades or trade modification executed with effect from 09th January 2020.

BSE Clarification on timelines for disclosures and listing of Commercial Paper -->> The circular clarifies on timelines for disclosures and listing.~~CP issuance need to be provided to QIBs including Mutual funds before deal confirmation of CP and further CP Issuer to ensure that listing of CP on Exchange is done within one day from the receipt of payment from Investors.

NSE Revised Date for Collection of Stamp Duty on CBRICS Platform -->> Revised Date for Collection of Stamp Duty on CBRICS Platform is being substituted from January 9, 2020 to April 1, 2020. The same is also covered under Cash/F&O/Debt/Commodity/Currency Derivative/Offer for sale/Tender-Offers for Takeovers, Buy Back and Delisting of Securities

NSE Penalty on Abnormal / Non-Genuine Transactions -->> Exchange to levy penalty of 15% of the profit earned / loss incurred on the TM for both profit and loss making abnormal/non-genuine transactions after following due process & providing necessary opportunity to TM for clarification in the matter and further TMs to ensure, to have requisite systems for monitoring Abnormal / Non-Genuine transactions.~~The same to be made applicable in all segments i.e. Cash Market, Currency Derivatives, Equity Derivatives and Commodity Derivatives Market, with immediate effect. Brokers to ensure necessary alert management in respective systems for such abnormal profit/loss bookings on Non-Genuine transactions

NSE Release of Advertisement FAQ -->> For facilitating members and provide more clarity about the advertisement approvals exchange has provided FAQ document. Questions what were basically answered by exchange such as 1.What is an Advertisement? ~~ 2.How to apply for prior approval of Advertisement? ~~ 3.What types of Advertisements/Publications/ Communications will require/ not require Prior Approval from Exchange? ~~ 4.What is the disciplinary action for not obtaining Exchange prior approval?

NSE Settlement of RFQ deals on CBRICS platform -->> NCL will be providing Clearing & Settlement services for both Corporate as well as Sovereign Debt. Further, Participants/Custodians to note that there will be no change in the settlement process for Corporate Bond, Commercial Paper, Certificate of Deposit and Securitised Debt deals.~~ Deals to be settled on T+1 basis, pay-in of funds and securities will be done before 12 noon and to be done by commercial banks appointed by NCL & create designated account for each participant. ~~ Funds to be transferred to designated account using RTGS/NEFT and securities for settlement to be transferred to existing CM-Pool account of NCL before 12 noon.

NSE Amendments to Rules, Byelaws and Regulations -->> Rules, Byelaws and Regulations (Capital Market, FNO, Currency and Commodity Derivatives ) of NSE Clearing Limited are amended regarding replacement of word Defaulters’ Committee and SGF Utilization Committee with ‘Relevant Committee’ and providing clarification on the same, FNO and Capital Market Regulations regarding consolidation of clearing under new uniform membership structure across cash and equity derivative segments and Facilitating dematerialized settlement of Agriculture and Agri-processed commodities through approved repositories.

NSE Long -Term Additional Surveillance Measure (LT- ASM) framework - Update -->> The Incremental Revised Criteria vis-à-vis previous criteria for shortlisting the stock under LT- ASM Framework to be effective from January 22, 2020 is specifically highlighted as follows where Close to Close Price Variation in a month is at least 25% + Beta (ß) * Nifty variation AND where PE is either negative or more than 2 times of PE of Nifty 50 AND Market Cap is less than Rs. 500 Crores as on review date.

NSE Submission of listing application with respect to re-issuances of Commercial Papers under existing listed ISINs through NEAPS -->> Exchange release of “Commercial Papers - Reissue” interface on NSE Electronic Application Processing System (NEAPS) for submission of application for final listing of CP re-issued under existing ISINs listed on the Exchange.~~The initiative is aimed at process automation of the entire debt module by providing a single window to the entities for making final listing applications of CP.~~ Hence members are required to file


CIRCULARSCIRCULARS

Compiled by Rekha Shah, Analyze N ControlThe firm specialises in helping Broking houses in Operational process set up and also has softwares focussed on compliances - regulatory search engine - www.circularsnorders.com and has a state of the art client screening product duly integrated with Anti Money Laundering and Surveillance product.

all applications for listing of re-issuances of Commercial Papers under existing ISINs listed on the Exchange through NEAPS only from January 20, 2020.

NSE Delivery margins for Delivery Settlement in Equity Derivatives -->> Delivery margins prior to expiry of the contract which are settled by delivery in last 4 days has been revised and reduced by 10% for Expiry - 4 EOD and Expiry - 1 EOD and 15% for Expiry - 2 EOD and Expiry - 3 EOD. Members to collect the delivery margins by T+1 day and to be included in the client margin reporting for CM/ TM.

NSE Clarifications on Running Account settlement of funds -->> Members are required to mandatorily settle the client accounts on a monthly / quarterly basis as per compliance, however, it has been observed that members are investing the actual client settlement amount (Monthly / Quarterly) of the clients with the consent/without consent of the client / through POA in any scheme or investment products including mutual funds, Exchange traded funds such as liquid bees etc. ~~Members are directed clearly to credit the settlement amount (Monthly/Quarterly) to client bank account directly and not run any schemes to invest the actual settlement amount (Monthly / Quarterly) with the consent/without consent of the client / through POA in any scheme or investment products. The retention on quarterly basis should be only as specified by given notification references

NSE Reporting of securities Pay-in / Pay-out shortages by Members -->> On account of failure of members to report shortages CC to take immediate attention and ensure due compliance by all members such as. ~~Members to ensure to report complete securities details of securities pay-in / pay-out shortages under all instances within 5 working days from the settlement date, if failed the same will be treated as non-compliance.

NSE Clarification on timelines of CP -->> Exchange has provided timelines for disclosures and listing by all Issuers of CP intending to list CP on the Exchange. ~~Issuers has to submit disclosure document with the exchange online on its NSE EBP on T-1 day, deal will be confirm on T day & issuers received receipt of funds from investors on T+0 Day/ T+X Day.

NSE Clearing & Settlement of Rights Entitlement Traded on Stock Exchanges -->> Providing clarifications on Clearing and Settlement of deals in respect of rights entitlement regarding Basis for Clearing and Settlement, Clearing Days and Scheduled Time, Norms for Delivery and Closing Out.

NSE NEAT Application - Discontinuation (Capital Market and Equity Derivatives segment) Reminder -->> Members are requested to switch of their operations from NEAT application to NEAT PLUS application or API based application/solution as NEAT application for Capital Market and Equity Derivatives segment will be discontinued w.e.f. April 2020

NSE User Id - Additional facilities for Trading Members -->> To help and to provide better services Exchange has now introduced-Bulk upload facility for CTCL id modification and facility for DMA id deactivation and CTCL location mapping within same city for user type NON-NEAT with specified path of access and relevant guidelines and requirements ,as applicable.

NSE Non Neat Systems-Digital acceptance of surrender request -->> Members can now submit an online request for partial /complete surrender of CTCL, IBT, STWT and DMA with respect to NNF and can be done segment-wise as well. Further, access module and user manual for the same is provided at specified path. ~~ After submission of surrender requests members can see the same in MIS report and those who wish to discontinue the usage of In-house NNF facility can also apply online and will have to surrender approval for all In-House products prior to that, and then exchange will discontinue levy of annual charges from subsequent financial year. The facility will be effective from January 31, 2020.

NSE Market Data Stream broadcasts in CM and FO segments -->> Changes made to Market Data Stream broadcasts in CM and FO segments such as Stream-wise broadcast to be introduced in the CM segment, 4 new streams will be made available in CM Segment. Refer Annexure A for details. Enrichment of existing stream-wise broadcast in the FO Segment. Refer Annexure B for details. Further, changes will be effected from mock on February 8, 2020 and will be available in live from February 10, 2020.

NSE Extranet Login for Mutual Funds segment -->> Members to note that password NFM trade member portal as on 16th January, 2020 can be used for extranet login till further notice.

CDSL Enhanced Due Diligence For Dematerialization Of Physical Securities -->> Circular highlights on Demat setup of DP that needs to be changed by adding specified fields which need to be captured DP in Online as well as Upload option, and the updated file format is enclosed as Annexure A. Further, Validations at the time of Online Demat Setup and Demat setup through upload by DP. ~~The release date of above functionality will be given subsequently and DP to ensure relevant changes in respective back office appropriately.

CDSL Collection Of Stamp Duty Through Depositories Stamp Duty Rules 2019 -->> State code of the buyer client to be valid in order to pay stamp duty to the state of buyer client and accordingly the same need to be checked for validity by the system that State code of Permanent address of buyer or State code of the correspondence address in case permanent address is not valid or is a foreign address or state code of registered address of the buyer DP in case correspondence address is not valid or is a foreign address.~~Accordingly DPs are required to capture their registered office address in CDSL system at page 9 under specified module where DPS would select the registered address either as “same as operational address” or “same as correspondence address” or “Other, if not System will keep on intimating to provide the same .

CDSL DP Operating Instructions As Of December –2019 Chapters & Annexures -->> CDSL has provided the CDSL’s DP Operating Instructions as of December 31, 2019, hence DPs are advised to note and compliance with them.

CDSL Incentive to DPs For Opening And Maintaining BSDA Accounts For The F.Y. 2018-19 -->> To compensate DPs towards cost of opening and maintaining BSDA, the specified incentives will be paid on annual basis w.e.f. financial year 2018-19, subject to review after a period of two years.

NSDL Amendments to Bye Laws and Business Rules of NSDL -->> Amended Bye Laws and Business Rules regarding Consequences of Termination about return of collateral, adjustments, issue resolution and rights and liabilities prior to termination, transfer of securities or rematerialisation option, account management and public notice of such cancellation

NSDL Non Availability of IDT on Trading Holidays->> No IDT to be exchanged between depositories on the trading holiday provided by CDSL for the trading calendar 2020.

NSDL Detailed procedure / guidelines for collection of stamp duty. -->> DP to inform their clients about applicability of stamp duty on all off-market transfers involving consideration including pledge invocations effective January 9, 2020.~~SD Consideration to be collected by DP-(1)Before execution of all off-market transfers on value specified by transferor on DIS. (2)On transfer of securities, pursuant to invocation of pledge, from the pledgee on value given on Pledge invocation Slips.~~Procedure for filling of DIS is detailed in circular.~~Procedure to be followed by DP for payment towards SD is given as Annexure A/ Annexure B respectively.

NSDL Availability of NSDL Depository System on Saturday, February 01, 2020 for the extended working hours. -->> NSDL Depository system will be available for the extended working hours on Saturday, February 01, 2020 and EOD activities will commence at 9:30 p.m. and the deadline time for submission of Inter Depository Transfer instructions will be 8:00 p.m on Saturday, February 01, 2020 on account of live trading session scheduled by NSE, BSE and MSE on Saturday, February 01, 2020 on account of presentation of Union Budget for FY 2020-21.

SABKA VISHWAS (LEGACY DISPUTERESOLUTION) SCHEME, 2019

By Neha Ahuja Advocate


FEATUREFEATURE

VALIDITYThe scheme was valid from 1st September, 2019 to 31st December, 2019.

ELIGIBILITYAny person falling under the following categories is eligible, subject to other conditions, to file a declaration under the Scheme:

(a) Who has a show cause notice (SCN) for demand of duty/tax or one or more pending appeals arising out of such notice where the final hearing has not taken place as on 30.06.2019.

(b) Who has been issued SCN for penalty and late fee only and where the final hearing has not taken place as on 30.06.2019.

(c) Who has recoverable arrears pending.(d) Who has cases under investigation

and audit where the duty/tax involved has been quantified and communicated to him or admitted by him in a statement on or before 30th June, 2019.

(e) Who wants to make a voluntary disclosure.

This Scheme is applicable to the following enactments, namely:

i. The Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made there under.

ii. The Agricultural Produce Cess Act,1940

iii. The Coffee Act, 1942iv. The Mica Mines Labour Welfare

Fund Act, 1946v. The Rubber Act, 1947vi. The Salt Cess Act, 1953vii. The Medic ina l and Toi let

Preparations (Excise Duties) Act,1955

On payment of the amount indicated in the statement

and production of proof of

withdrawal of appeal, wherever applicable, the

Designated Committee shall

issue a discharge certificate in

electronic form, within 30 days of the said payment and production of proof, whichever

is later.

xxxii. Tea Act, 1953xxxiii. Finance Act, 2001xxxiv. Finance Act, 2005 xxxv. Finance Act, 2010 xxxvi. Any other Act, as the Central

Government may, by notification in the Official Gazette, specify.

If an audit, enquiry or investigation has started, and the amount of duty/duty payable has not been quantified on or before 30th June, 2019, the person shall not be eligible to opt for the Scheme under the enquiry or investigation or audit category. ‘Quantified’ means a

viii. The Additional Duties of Excise (Goods of Special Importance) Act, 1957

ix. The Mineral Products (Additional Duties of Excise and Customs) Act, 1958

x. The Sugar (Special Excise Duty) Act, 1959

xi. The Textiles Committee Act, 1963

xii. The Produce Cess Act, 1966xiii. The Limestone and Dolomite

Mines Labour Welfare Fund Act,1972

xiv. The Coal Mines (Conservation and Development) Act, 1974

xv. The Oil Industry (Development) Act, 1974

xvi. The Tobacco Cess Act, 1975xvii. The Iron Ore Mines, Manganese

Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976

xviii. The Bidi Workers Welfare Cess Act, 1976

xix. The Additional Duties of Excise (Textiles and Textile Articles)Act, 1978

xx. The Sugar Cess Act, 1982xxi. The Jute Manufacturers Cess

Act, 1983xxii. The Agricultural and Processed

Food Products Export Cess Act,1985

xxiii. The Spices Cess Act, 1986xxiv. The Finance Act, 2004xxv. The Finance Act, 2007xxvi. The Finance Act, 2015xxvii. The Finance Act, 2016xxviii. Sensitivity: Internal & Restricted

Cine-Workers Welfare Cess Act, 1981

xxix. Industries(Development and Regulation) Act, 1951

xxx. Sugar Export Promotion Act, 1958

xxxi. Sugar (Regulation of Production) Act, 1961

Neha Ahuja, Advocate

• Working as an Advocate in the field of Tax, Intellectual Property, Capital Markets & Securities, Anti-Corruption, Investigation, Manufacturing, Consumer Products, Industrial Products & Durables, Communications (Telecom & Broadcasting), Energy (Power, Coal, Oil & Gas),Mining, Civil and Criminal litigation. Specialized in Criminal Litigation.

• Working at Prompt Legal, which is one of India’s leading independent law firms.

• Regular faculty at Jai Hind College of Commerce and Science for the subject of Law. Lectures given on the following Acts and Bills:Contract Law, 1872, Companies Act, 2013, Reserve Bank of India Act, 1934, Banking Regulation Act 1949, Negotiable Instruments Act 1881, Indian Insurance Act 1938, IRDA Act 1999, Consumer Protection Act, 1986, Ombudsmen Act 1975,Indian Stamp Act 1899, Indian Registration Act 1908, Lokpal and Lokayukta Bill.

• Worked as a Constitutional expert on several books published by Lexis Nexis namely “India Needs GST” 3rd Edition. Also, written textbooks at college level on the subject of IPR & Cyber Law published by Vipul Prakashan.

• Editor for Law Textbooks on the subject of Contract Law, 1872 and Negotiable Instrument Act 1881 published by Reliable Publication.

• On the panel as a Legal Committee member to social clubs such as the Cricket Club of India.

• Completed her Bachelors in Banking and Insurance (BBI). There after obtained a Masters degree in Commerce (Mcom) and then completed Legum Baccalaureus (LLB).


FEATUREFEATURE

written communication of the amount of duty payable under the indirect tax enactment [Section 121(g)]. Such written communication will include a letter intimating duty demand; or duty liability admitted by the person during enquiry, investigation or audit; or audit report etc.

All eligible persons are required to file an electronic declaration at the portal https://cbic-gst.gov.in in Form SVLDRS 1. On receipt of your declaration, an auto ac knowledgement bearing a unique reference number will be generatedby the system and sent to you. This unique number will be useful for allfuture references. The declarationwill automatically be routed to the Designated Committee that will finalize your case. Within sixty days of filing of a declaration, you will be informed electronically about the final decision taken in the matter.

BENEFITSThe various benefits available under the Scheme are:

• Total waiver of interest and penalty• Immunity from prosecution• In cases pending in adjudication or

appeal, a relief of 70% from the duty / tax demand if it is Rs. 50 lakhs or less and of 50%, if it is more than Rs. 50 lakhs. The same relief is available for cases under enquiry, investigation and audit where the duty involved is quantified on or before 30.06.2019.

• In case of an amount in arrears, the relief is 60% of the confirmed duty/tax amount if the same is Rs. 50 lakhs or less and it is 40% in other cases.

• In cases of voluntary disclosure, the declarant will have to pay full amount of disclosed duty/tax.

Every discharge certificate issued under section 127 with respect to the amount payable under the Scheme shall be conclusive as to the matter and time period stated therein, and:

a) the declarant shall not be liable to pay any further duty/tax,interest, or penalty with respect to the matter

said payment and production of proof, whichever is later.

If there is any calculation errors then, within 30 days of the date of issue of a statement indicating the amount payable by the declarant, the Designated Committee may modify its order only to correct an arithmetical error or clerical error, which is apparent on the face of record, on such error being pointed out by the declarant or suo-motu.

OPPORTUNITY OF BEING HEARDAfter the issue of the estimate, the Designated Committee shall give an opportunity of being heard to the declarant, if he so desires, in case of a disagreement. A date of personal hearing is intimated, along with the estimate issued by the Designated Committeein Form SVLDRS-2. Written submissions can be made, personal hearing canbe waived, and one adjournmentof the personal hearing can also be sought through Form SVLDRS-2A. These forms are available at the portal https://cbic-gst.gov.in and are submitted electronically.

and time period covered in the declaration;

b) the declarant shall not be liable to be prosecuted under the indirect tax enactment with respect to the matter and time period covered in the declaration; and

c) no matter and time period covered by such declaration shall be reopened in any other proceeding under the indirect tax enactment.

Any amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be adjusted while issuing the statement indicating the amountpayable by the declarant. However, amount paid after the issuance of show cause notice but before adjudication are not mentioned therein. Further, these amounts usually get appropriated/ adjusted at the time of adjudication. There may be situations where such deposits may have been made but could not be appropriated due to pendency of adjudication proceedings. Such deposits can also be deducted/adjusted when is suing the statement indicating the amount payable by the declarant.

PROCEDUREWhere the declarant has filed an appeal or reference against any order or notice giving rise to the tax dues, before the appellate forum, other than the Supreme Court or the High Court, then, such appeal or reference or reply shall be deemed to have been with drawn. In case of a writ petition or appeal or reference before any High Court or the Supreme Court, the declarant shall file an application before such High Court or the Supreme Court for withdrawing the writ petition, appeal or reference and after its withdrawal with the leaveof the Court, he shall furnish proof of such withdrawal to the Designated Committee.

On payment of the amount indicated in the statement and production of proof of withdrawal of appeal, wherever applicable, the Designated Committee shall issue a discharge certificate in electronic form, within 30 days of the

UNDERSTANDING MODUS OPERANDIOF FRAUDULENT TRANSACTION IN UNIFIEDPAYMENT INTERFACE (UPI) PLATFORM

By Dr. Sarika R. LohanaPost-Doctoral Research FellowState Bank Institute of Innovation and Technology, Hyderabad

DIGITAL PAYMENT SYSTEMS IN INDIA:OPPORTUNITIES AND CHALLENGES

Dr. Meghna Dangi,Associate Professor,School of Business,AURO University, Surat

By

Dr. Nidhi Pallava Rathore,Formerly Working as

Assistant Professor, S.S. JainSubodh P.G. College, Jaipur


IntroductionOne of the key areas in the modernday economy which has faced unprecedented challenges is payment settlement systems. From digital disruption and innovation to regulatory requirements, they face the inevitable trials of flexibility and adaptability. This article is an attempt to showcase the digital payment landscape and it navigates the movement of cash and plastic card payments to payments made through digital channels, either from dematerialized cards held in digital wallets or in the cloud. Though the quantum of digital payments in future is difficult to estimate, the migration is certain with the development of the digital economy. Mobile and digital payments are not only much talked about by policy makers but are also attracting significant investments and innovation to the extent that they are being backed by private equity and venture capital. It is a matter of interest as to how the banking sector realizes, recognizes and reacts to this new environment; how it struggles with evolving technologies and partners with digitals ecosystems; how it adapts its routine operations and how it strategizes its position in this dynamic ecosystem. The objective of this research is to understand the trends shaping the digital payments landscape, recognize what makes a digital payment proposition successful and identify the capabilities to bring digital payment to masses for the growth of the economy.

BackgroundIn India, digital payments began as a pilot programme in the banking industry. The concept of digital payments emerged with the growth of e-commerce and digital wallet companies. To attract users, the digital wallets companies rolled out lucrative offers and cashbacks schemes so that the customers used

By February 2017, digital wallet

companies had shown a growthof 271 % for atotal value of

US$2.8 billion. As per the report of the Google-BCG

India’s digital payments industry

would grow to US$500 billion

by 2020, contributing to 15 % of India’s GDP.

their payment channel. The revolution of mobile phones and simplicity in using these payment gateway shelped the digital wallet companies to make a swift and smart entry in the consumer’s phone as well as their purses. To carve a niche in the markets digital wallets started luring customers to use them for simple daily offline point of sale (POS) transactions too like shopping in supermarkets, grocery stores, restaurants and gas/petrol stations. The other important factors which revolutionized the digital payment network were simple but important chores like online ticketing for travel, amusement, applications for admissions, bill payments etc. This has led to the growth of fintech companies who primarily focus on answering the existing and future needs of today’s digital customers.

In 2015 the awareness of having payment methods other than cash was actually conceptualized. With the drastic measure of demonetization being announced in the year 2016 severe cash crunch brought the entire economy to a near standstill. Smalltime vendors like rickshaw pullers, vegetable sellers were forced to make and accept payments digitally. Working in accordance with government reforms, Prime Minister Narendra Modi had actually forced Indians to adopt cashless transactions, giving the digital payments sector a much needed spurt. This encouraged financial services to be introduced after much innovation, trials and finally implementation.

What is a Digital Payment System?A payment system enables payment between two entities i.e. a payer and payee and constitutes clearing, settlement or payment service. The Payment and Settlement Act, 2007 has defined Digital Payments as “an electronic funds transfer means any transfer of funds which is initiated by a person by way of inst ruct ion, authorization or order to a bank to debit or credit an account maintained with that bank through electronic means and includes point of sale transfers; automated teller machine transactions, direct deposits or withdrawal of funds, transfers initiated by telephone, internet and, card payment.” Security and Speed are the basic pillars of digital payments.

Payment and Settlement Systems are major building blocks in the financial and economic structure of any country. Digital payments offer umpteen opportunities to people dwelling in Urban and Rural India. In addition to accelerating financial inclusion, innovating new business models developing new markets, digital payments can provide a major breakthrough to curb tax leakages,

TEACH FOR INDITEACH FOR INDIA

For more information & queries, please contactJPNR Corporate Consultants Private Limited

10, Bow Street, Near Central Metro, Kolkata - 700012.

Email ID: [email protected] / [email protected] Mobile No: +91 8017467202 / 9903271562

In order to incentivise listing of bonds at IFSC

exchange, the Government has proposed to reduce the withholding tax rate to 4 per cent from

5 per cent on interest payment on bonds listed

on its bourse.

1.0 Synopsis of the previous releaseIn our last release, we had covered the framework for issuance of External Commercial Borrowing (ECB) with respect to units in Special Economic Zone (SEZ), in terms of provisions conta ined in the Fore ign Exchange Management Regulations.

2.0 Coverage in the current releaseIn the current release, we shall endeavour to lay down the critical impact of Union Budget, 2020 on GIFT IFSC. Finance Minister Nirmala Sitharaman has praised IFSC for its potential to become a centre of international finance and high-end data processing. Further, the Finance Minister has proposed to cut withholding tax to boost listing of bonds at IFSC exchange. Apart from the same, proposal to set up an international bullion exchange at IFSC in GIFT City & to exempt levy of stamp duty on transactions in stock exchanges established in IFSC has been made.

3.0 Key incentives and concessions which have been proposed in the Union Budget:In the ensuing paragraphs, we shall discuss various additional incentives and concessions which have been proposed by the Government for units located at IFSC.

3.1 Proposal to exempt Levy of Stamp Duty on Transactions in Stock Exchanges established in International Financial Services Centre (IFSC):Last year, in Finance Budget, 2019, the Government had inserted Section 9A to the Indian Stamp Act, 1899 whereby it was proposed to consolidate the stamp duty provisions relating to issue, sale or transfer of securities under the newly inserted section 9A and 9B of the Indian Stamp Act, 1899. The Amendment Act also proposed a uniform system for collection and payment of stamp duty on the issue and transfer of securities. On presenting Budget 2020, Finance Minister proposes to exempt levy of stamp duty on transactions in stock exchanges established in IFSC. This provision will come into force on the 1st day of April 2020.

In section 9A of the Indian Stamp Act, 1899 in sub-section (2) proviso will be amended as no stamp duty will be chargeable in respect of the instruments of transaction in stock exchanges and depositories established in any IFSC set up


This is our twenty fourth release in the series of awareness articles on IFSC

Niraj Kumar Harodia (FCA, ACS, B. Com)

He is a Director in JPNR Corporate Consultants Private Limited which is a business advisory and Consultancy Company, incorporated under Companies Act, 2013. The company is engaged in providing services related to Goods and Services Tax, advisory services to International Financial Service Center [Gujarat International Finance Tec-City (GIFT)]. During his association with Deloitte earlier, he has gained expertise in Banking and Real Estate Industries.

He is proficient in Direct and Indirect Taxation and he has been rendering advisory services in GST Impact Assessment in various industries namely Hotel, Construction, Real Estate, Coal, Agro Chemicals etc.

He is also a visiting faculty of GMCS, ICAI and is also the Chairman of Editorial Board of Direct Taxes Professional Association.

The new section 73B is inserted after section 73A of Indian Stamp Act, 1899 which states that the Central Government has the power to issue directions relating to such matters and subject to such conditions which is necessary and authorize in writing to the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 or the Reserve Bank of India (RBI) constituted under section 3 of the Reserve Bank of India (RBI) Act, 1934 to issue instructions, circulars or guidelines, for carrying out the provisions of Part AA of Chapter II and the rules made thereunder.

3.2 Proposal to cut withholding tax to boost listing of bonds at IFSC exchange:Withholding tax is levied globally on interest paid to a person who is resident outside that country.

In order to incentivise listing of bonds at IFSC exchange, the Government has proposed to reduce the withholding tax rate to 4 per cent from 5 per cent on interest payment on bonds listed on its bourse. This move will immensely help them in attracting more international investors. 3.3 Proposal to set up an international bullion exchange at IFSC in GIFT City:While presenting the Budget for 2020-21, the Government has proposed to set up an international bullion exchange at IFSC in GIFT City, which will lead to better price discovery of gold, create more jobs and enhance India's position in such market.This emphasised the importance of GIFT IFSC as an emerging global financial services hub which will give tremendous boost to investor confidence both in India and abroad.

under section 18 of the Special Economic Zones Act, 2005.

FEATUREFEATURE

BUDGET 2020: INCENTIVES ANDCONCESSIONS TO INTERNATIONALFINANCIAL SERVICES CENTRE (IFSC)

By Niraj Kumar HarodiaDirector, JPNR Corporate Consultants Private Limited

3.4 Introduction of Rupee derivative trading:Paving the way for rupee derivative trading in IFSC, will bring in huge trading of this global product to GIFT City. The move will benefit Indian bourses at IFSCs, as such derivative contracts are presently dominated by exchanges in Dubai and Singapore.

This is going to be corresponding to another off-shore exchange where only non-residents or GIFT based entities can trade, as per the existing regulations. This may further narrow down the arbitrage between on-shore and off-shore markets and induce lower volatility in rupee emanating exclusively from off-shore markets

4.0 Parting remarksThe Budget 2020 has proposed certain welcome amendments for IFSC that will contribute to the value proposition. It is hoped that the provided tax incentives, accompanied by the introduction of rupee derivative, will finally provide the much-needed acceleration for IFSC to position it on the global map. GIFT City is an emerging global financial and IT services hub, a first of its kind in India, which is designed to be at par with globally benchmarked business districts.


TEACH FOR INDIATEACH FOR INDIA

reduce funding of criminal activities and minimize cash related costs. A few examples of Digital Payment are NEFT/IMPS transfer via app or any bank’s website, Paytm (Pay through mobile) transaction via app or website or other payment gateways like Paytm (Tez app, Payzap, Rupay, Freecharge, BHIM, UPI)

The phenomenal rise in digital payments globally may be mainly contributed by four factors - • Innovations leading to a revolution in

the world of digitalization and technology

• Entry of several non-banking PSPs (Payment Service Providers) into payment channels

• End users becoming tech savvy and looking for fast payment solutions at the click of a button.

• Governments promoting progressive changes in the regulatory framework keeping in mind the Digital India Programme.

This Paradigm shift is because of technological developments and with the major population wanting to enjoy the convenience of online shopping rather than the traditionally made brick and mortar store. Several studies have proved that the companies dealing in cashless transactions work harder to provide greater customer satisfaction and thus enjoy a competitive advantage in the market. The increased use of online transactions is a proof that consumer trends are moving in favour of development of digital payments.

Factors responsible for growth of Digital Payments IndustryThe digital payments industry has seen a spiral growth since November 2016, when the government demonetized 1000 & 500 rupee notes with immediate effect. This amounted to almost 86 % cash in circulation in India. By February 2017, digital wallet companies had shown a growth of 271 % for a total value of US$2.8 billion. As per the report of the Google-BCG India’s digital payments industry would grow to US$500 billion by 2020, contributing to 15 % of India’s GDP. Keeping in pace with the latest developments and sensing benefits of digital payments, industries in every fieldstarted associating with these gateways.

Users started realizing how conveniently and smoothly transactions could be completed in almost no time. People started using Paytm, PayPal, Google Pay etc. and the country’s traditional cash based economy suddenly started turning cashless. There are several otherfactors that help to grow the digital payment industry like availability and convenience, lower risk in doing cashless transactions as compared to keeping hard cash in one’s pocket, high speed in completion of transactions etc. The tracking process in the digital payment industry is seamless. The details of payments are saved with a merchant-specific database. The customer and merchant can easily access the payment information. The Reserve Bank of India (RBI) is a regulatory body that keeps a strict eye on the digital payment industry. They provide various circular and guideline to govern prepaid instruments, intermediaries and the payment system operator. Stringent measures like the introduction of Know Your Customer (KYC)were introduced so that the cases of frauds can be easily traced and eliminated. The government keeps taking new initiatives to improve the digital infrastructure. All of the factors contribute to the growth of the digital payment industry in India.

Opportunities for Digital Payment Systems:From being a traditionally cash based economy; India’s digital payment is still in its infant stage. Backed by futuristic and supportive policies of the government and ever rising use of mobile and internet, the payment industry is going through a transformational phase.

The total digital payment market in India will grow to US$1 trillion by the year 2023 .Mobile payments are expected to grow from US$10 billion in FY18E to US$190 billion by FY23E. These estimates however include only 5 instruments which are: IMPS, Prepaid Instruments, UPI, ECS / NACH and Online spends. With the entry of global top shot technology companies in India the Digital Payments ecosystem in India are undergoing a complete metamorphosis. With several kinds of payment apps and cards being launched a rocket rise in digital payments is definitely on the cards.

Worldwide trends indicate that customer expectations for value-added services is continuously on the rise and increased competition due to the emergence of FinTech companies, lightning fast technological changes and an ever-changing regulatory environment offer Digital Payments companies endless opportunities of growth.

According to a study around 95 % of Indian retail expenditure is offline, of which 70 % are cash payments; this is where the opportunity needs to be grabbed by digital payment companies. In fact, over the past year, penetration of digital payments is no longer restricted to urban India and is increasingly being adopted by Tier II, Tier III and Tier IV cities across the country. Physical store owners are realizing the benefits of having a digital payment infrastructure. Providing customized solutions makes easier for merchants to start accepting digital payments.

Challenges of Digital Payment Systems:One of the biggest challenges being faced by the digital payment companies along with the government is the unbanked populat ion of the country. The government along with RBI implemented and initiated numerous schemes like PradhanMantri Jan DhanYojana, digital India payments limited etc., to promote financial inclusion, especially in rural India. In spite of all efforts being made even today, approximately 19% of the Indian population does not have access to banks. All the popular methods of payment like E-wallets United Payment Interface and BHIM etc. are primarily dependent on bank accounts, in addition to internet and smart phones.

Hacking of bank accounts, emails and other databases globally pose a challenge of cyber security. Malware is a virus infecting mobile apps of banks. It allows stealing of password details and even hinders the two factor authentication, by presenting victims with a fake version of the login screen when they access their actual banking application. Redundant versions of operating systems and use of non-secure public WIFI networks in mobile devices allow cybercriminals to access existing online banking session to steal funds and credentials. Smartphones



References• Kulkarni Shrihari and Taj Abdul Shahnaz, “Digital

payments: Challenges and Solutions”, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668 PP 50-55

• Singhraul BP, “Cashless Economy – Challenges and Opportunities in India”. Pacific Business Review International. Volume 10 Issue 9, March 2018. 54

• Entrepreneur.com, “DigitalPayments in India: Challenges and Opportunities”, Anurag Gupta, July 10th, 2019

• CIOL,”Digital Payments: future Opportunities and Challenges” Ashok Pandey, February 6th, 2019https://www.ciol.com/digital-payments-future-opportunities-and-challenges/

• KPMG, “India’s Digital Future: Mass of Niches” , August 2019. home.kpmg/inhttps://assets.kpmg/content/dam/kpmg/in/pdf/2019/08/india-media-entertainment-report-2019.pdf

• NitiAyog, “Digital Payments: Trends, Issuesand Opportunities” July 2018 https://niti.gov.in/ writereaddata/files/document_publication/DigitalPaymentBook.pdf

and internet connectivity are still unaffordable to a sizeable population thus not giving them access to digital transaction. There is a lack of awareness about using the digital solutions like smartphone based transactions, use of credit/debit cards at PoS solutions. Penetration of technology to various remote locations of the country still remains a dream. Though, it isbeing proposed that every part of India shall have ICT (information and communication) services in place, still in many of the locations services are not available for the customers.

Risks of Digital Payment Systems:The innovations of the new digital payment systemsare not risk free. Starting from issues like cyber security, to the impact of legacy technology and tough competition from peer companies the road to success for organizations wanting to be a part in the future payments marketplace is not very easy.

Cybersecurity is one of the biggest challenges faced by stakeholders of the digital payment ecosystem. With more and more users preferring to use digital payment gateways, the chances of getting trapped into cybersecurity risks such as online fraud, information theft, and malware or virus attacks increase multifold. Weak digital payment systems and unaware users are basic reasons that have led to the increase in these attacks. Penetration of digital channels along with increased data access at low costs in almost every part of India, resulted in an exponential growth of number of people having access to the internet. Unaware and innocent end users are easy preys to social engineering attacks which include identity impersonation, giving away sensitive information, etc. The result is that all these users have a greater risk of being exposed to cyber-risk. Smart phones with internet access are like traditional computers from security point of view. The big difference being that these smart phones are generally not secured through various security tools - such as antivirus, anti-phishing, antimalware, etc.

Dr. Meghna Dangi is presently working as Associate Professor at AURO University and has over sixteen years of experience. She has to her credit a PhD. in the field of Behavioral Finance. She is a Fellow member of The Institute of Chartered Accountants of India as well as Cost and Management Accountants of India. Her domain areas of teaching include Financial Accounting, Management Accounting, Behavioral Finance and Management of Financial Services. She has various publications in the field of Behavioral Finance and presents research papers regularly at National and International Conferences including IITs and IIMs. She also consults and trains in the field of Personal Finance and Financial Planning. She possesses six years of corporate experience, first as a Legal and Accounts advisor in a Yarn manufacturing company and then as Vice president with a leading manufacturer and export house. Her rich and in-depth knowledge of working in corporates along with her academic learning and experience has given her a unique perspective in teaching the subjects of management.

At AURO, where she is working since last 8 years, she has held various portfolios as Admissions Head, as coordinator for the BBA program and is a part of various University level committees. Last year, she was instrumental in setting up of the AURO Innovation and incubation cell. As a part of the University level SSIP committee this year, she promotes the entrepreneurial spirit of students by leading a module on Entrepreneurial finance, mentoring student projects of AIIC and co-convening the Festival of Ideas since last two years, a National level initiative of AURO to contribute to the startup ecosystem. Presently, she is the Program coordinator of the Post graduate diploma in Financial Markets, an area of her research interest and expertise. She is instrumental in enabling the learners in developing skill sets required to succeed in the financial market industry through curriculum development, pedagogical design, industry integrated sessions and as convener of national level Seminars in the field of Financial markets.

Dr. Nidhi Pallava Rathore, has a long& varied teaching experience at graduate and post graduate levels in various reputed Colleges & Universities in India. Holding a doctorate in Corporate Governance she has also worked for almost five years in the corporate sector. Her rich experiences and detailed knowledge has given her a multidimensional viewpoint of teaching the subjects of banking & management.

Almost all mobile phone users have multiple application programme interface installed on their devices which can be untested. These also include the ‘cracked’ applications that may have access to information across the device. These applications have access financially sensitive information and can be passed on to attackers. For example information such as OTP can be hacked by malicious applications installed on mobile phones, which can directly access the messages or calls in the mobile phone of the user. In India there are unpatched operating systems i.e. Androids as well as Apple operating systems being used in mobile phones. The nature of some of these operating systems is vulnerable to lapses in security and the users are exposed to this. A major chunk of information exchange takes place between third parties. Compromises in debit card security can be linked to security attack on third party service provider. The entire network of these digital payment systems is enormous. It is difficult to impose adequate security controls on these multiple data interfaces, devices and systems.

ConclusionIn coming years India will witness a major transformation in the digital payment industry. The future is going to be extremely bright and profitable. A push for this growth will be the ever increasing India’s smartphone user base, which is the second largest in the world.In addition to the private sector, the Indian government has also ddeveloped payments apps, including the Aadhaar Payment App, the UPI app, and the Bharat Interface for Money (BHIM) app developed by the National Payments Corporation of India (NPCI). Such apps make it easier to transfer funds in interior locations of the country, and will give a boost to bring about greater adaptability to cashless transactions. Foreign investors would also be keen to make hefty investments in the Indian digital payments industry. Transactions would all be digitized in the future. It is assumed that the amount of cheque-based payments will decrease by 2022. Today, there is collaboration between banks, merchants and fintech companies.


A simple task of few taps on the phone is all that is needed to avail a

loan. The only requirements are

identity proof, residence proof, a bank account and a few salary slips.

Once the requisite proof is submitted, within 60

minutes, the loan amount is credited to

bank account.

DIGITAL LENDINGAN EMERGING TREND

By Srinivas Rao N.Chief Manager (Faculty), State Bank Instituteof Innovation & Technology (SBIIT - Hyderabad)

TEACH FOR INDITEACH FOR INDIA

₹.100 per default further, in case of any

default. It is a form of ultra-short-term unsecured loan, which has a credit industry nickname as ‘Hand Loan’ in India and a Payday loan in western countries like US.

Street Hawker, Vegetable Vender, Auto driver, Milk man or a daily Awager, whoever may be the under

privileged have limited exposure to formal banking in general. Whenever they are in urgent need of a quick cash loan, no financial institute comes forward to their rescue by lending money not even a rupee for a day. Traditionally, banks and non-banking financial companies (NBFCs) have rigid stipulations that filters out majority of individuals who need small loans. Say for example, if I want to avail a personal loan with a bank, I need to have a salary account with the bank, salary credit history, average balance in my account, relationship with the bank and credit rating score etc.

However, there are some un-organised lenders who come forward to rescue these people by offering a hand loan on days basis. They extend these loans without any collateral security, personal guarantee, documentation, stamp duty etc. However, these loans are small-ticket personal loans starting at ₹500 to ₹50000, depending up

on the mutual trust, with a repayment of minimum one day to maximum 30 days. Typically, interest rate ranges between 10 to 20% per month. Say for example if I took a hand loan of ₹5000 today, the money

lender pays only ₹4500 i.e., (₹5000-

₹500=₹4500) the interest charge is

deducted upfront from the principle just like processing fee charged by the bankers upfront. Then, I have to pay ₹500 daily for10

days to him and, I have to pay a penalty of

This genesis of indigenous lending model adopted into the organised sector with start-up innovations in the form of mobile app is named as Fintech Loans on digital platform. Start-ups and ongoing innovation booming with mobile apps is dragging the millennials to this short-term loan addiction. It is not stupendous to know how aggressively the Fintech lenders are penetrating, one can understand by the following SMS triggered to my mobile in a single day. 1. Limited period offer! You are pre-

qualified for a personal loan up to Rs 8 Lakhs for salary above 25k. Give a missed call on 01246027056 for more details.

2. Avail Salary Advance loans up to Rs.1 Lakh. Interest starting 2% only. Apply and get a Loan within 15 min. Hurry! http://f49.bz/1997tS

3. Finding it hard to pay off multiple debts? Apply for personal loanwith 10.99% interest to consolidate y o u r d e b t s . A p p l y n o w @ http://f49.bz/1mDC6W

4. Limited period offer! You are pre-qualified for a personal loan up to Rs 8 Lakhs for salary above 25k. Give a missed call on 01246027056 for more details.

5. Transfer your outstanding creditcard debt to personal loan with interest rate as low as 10.99%. Click http://f49.bz/1kjjuI to apply.

A simple task of few taps on the phone is all that is needed to avail a loan. The only requirements are identity proof, residence proof, a bank account and a few salary slips. Once the requisite proof is submitted, within 60 minutes, the loan amount is credited to bank account. These loans are of short repayment tenure of 15-30 days, scheduled from the day of pay. The rate of interest is obviously relatively high as the price covers the contingency risk of financial delinquency. For young millennial adult generation Y and Z, it is almost like a mobile game. Millennial borrowers are financing their lifestyle spending by taking short-term loans and e-wallet credit or credit cards limit at will, safely, without risking their financial future. New-age, app-based credit is fast growing. With the advent of Fintech easy loans offered by digital lending platforms, this market is booming and has potential to further spike.

Growth in the Digital Lending Space:Fintech companies with innovative ideas led the digital lending revolution has re-defined the rules of traditional banking. Two primary reasons for the rapid growth in the digital lending space are the enabling policy of e-KYC, the one where a user can verify their demographic details and other relevant information needed to fulfil regulatory requirements using the Aadhar framework and the other one is formalization and acceptance of the Indian Credit Rating System. This development made it possible for fintech to onboard customers online seamlessly with minimum or without paperwork. Once the customer is on-boarded and his/her creditworthiness can be evaluated



Srinivas Rao, M.Com, CAIIB.

He won consolation prize for Case study writing competition conducted by IIBF. His articles are published in IBA journal, The Indian Banker and in-house journals of SBI. He has also written in-house manual on YONO, CPDB.

Process Automation (RPA) technology advancements almost on real-time. Asper NASSCOM, things will continue to look up with Indian fintech market potentially touching 2.4 billion dollars by 2020. A report by PWC from January 2013 to October 2018, approximately 2,000 FinTech companies have been founded. The maximum share among fintech start-ups were lending NBFC’s, payment companies, insurance and wealth management start-ups. Among the popular payment apps have made significant impact include Google Pay, Paytm, MobiKwik, Policy Bazaar, PhonePe, and Amazon Pay.

Fintech start-ups have totally changed the landscape of lending business through innovative and scalable business models. These new age fintech are disrupting traditional financial services at a pace never seen before, across the spectrum, from lending to investment. In view of the existing start-ups in India, Fintech products can be classified in to 7 major verticals. The lending models are broadly including:1. Point of Sale (POS) transactions-based

lending2. Bank-fintech partnership model3. Invoice discounting exchanges4. Loan Marketplaces5. Bank-led digital models (Kotak

Mahindra Bank’s 811 application, HDFC Bank’s 10-second personal loan, SBI YONO PAPL)

6. Non-financial players of captive model like Uber, Ola partnering with Banks to finance drivers. Online Market Place Apps such as Paytm, allowing monthly e-wallet overdrawing limits to users like Credit Card site facility.

7. Peer to peer (P2P) lending

Post demonetisation in India witnessed a quantum increase in digital transactions over the previous years. Due to the physical cash crunch, the situation prompted many Fintech start-ups to unleash creative solutions targeting the unbanked segment with digital wallets and have expanded their platform.

Today’s generation is impatient, and they are loaded with abundant choice in their mobile Play Store or App Store by alternative Fintech products. They are prompted by lure of instant approval, paperless loans, cash back offers, cheaper

interest rates and much more is what drives to compete in the digital lending space.The successful penetration and the swift growth in the digital lending space have now forced traditional banks to redefine and adapt their business models with contemporary changing times. Bank’s traditional lending involves a lengthy process, with past records of long queues and sluggish response defacing the brand image and productivity. Even opening a bank loan account was exhaustive as harried customer would run pillar to post, while getting the necessary documents. Digital lending through mobile applications enable the convenience of opening the account by digitizing documentation eases the process. It is creating a comprehensive platform, where the customer and banker connects at a common convenient point. Digital banking via mobile apps, helping to migrate banking services into virtual banking business. The liability products are almost migrated to virtual mode. The Asset products are picking up to digital platform with a dual combination of customer self-assist, with or without branch assist mode in a phased manner. Further, banks have started collaboration with fintech start-ups to streamline their existing processes and to catch up on the innovation that is emerging. The future for the digital lending space is enormous potential. Still there is scope for a lot of innovative offerings as the low-cost scalable business models inherently supports disruption. Like a Black Hole in cosmos, traditional bank lending will be absorbed into a small mobile application by the gravitation force in the form of Fintech Products with Artificial Intelligence. In such an environment, Banks are transforming like Fintech companies rather than manual transaction punching premises.

CERTIFICATE OF ORIGINALITY: This is to certify, that the article submitted by me are an outcome of my independent and original work by compiling various sources of information. I have duly acknowledged all the sources from which the ideas and extracts have been taken. The booklet is free from any plagiarism and has not been submitted elsewhere for publication.

objectively deciding of approving or disapproving the loan is also made easy by Artificial Intelligence with collaboration of Robotic Process Automation and Application Programming Interface.

It is evident that a lending start-up named Rupeek is offering gold loans at the customer’s doorsteps and completes the loan process and disbursal within 30 minutes. It started in 2015 as an asset-backed lending marketplace, has disbursed gold loan of ₹.1000 crore till date

without having physical brick and mortar store like Muthoot or Manappuram. Rupeek, leverages digital KYC verification using Aadhaar to quickly onboard the loan. The start-up uses social media to target a specific potential salaried customer by its marketing search engine through digital adds.

The New Way of bridging the GAP:Around 40 percent of customers may not be able to get a traditional bank loan; either they are too young, or their credit scores are not available or matured. The reluctance of banks and NBFC’s to enter the risky small loan segment has enabled digital lenders to quickly fill the gap and acquire a large customer base. Digital lenders do not need a physical Brick and Mortar branch network. All operational functions are done digitally over the internet with a desktop, laptop, tab, or a mobile gadget. Therefore, they are able to keep low fixed costs and operating expenditure. Further the benefits of which when passed on to the customer makes digital lending attractive for users. Digital lenders are now aggressively attending to the credit needs of the small business/ MSME’s and the informal sector to name a few. This is one segment which has been historically ignored by the traditional banking system and the gap is being aggressively filled by digital lenders through Fintech products.

Emerging Fintech companies in India:According to Inc42 DataLabs, the projected credit demand in India is around $1.40 Tn by 2022. This potential has led to the growth of multiple lending start-ups in the country like ETMONEY, LazyPay, LendingKart, among others. Between2015 and 2018, the total investment in Indian fintech start-ups was $7.62 Bn. Fintech start-ups are expanding with Artificial Intelligence (AI) based on Robotic


A LIFE OF PURPOSE

By Jaya RowFounder, Vedanta Vision &Managing Trustee, Vedanta Trust

Jaya Row, Articulate, effective and engaging, Mrs. Jaya Row brings alive the wisdom of the Vedas in a modern context. Combining her experience in corporate life with 40 years of study and research of Vedanta she provides useful insights to life.

Charming oration which transforms complex Vedic principles into brilliant management mantras is the hallmark of her discourses. Her clarity, wit and zeal have captivated audiences far and wide and inspired people from all walks of life.

She has the rare gift of being able to connect with and address the concerns of a wide range of people from varied walks of life - from CEOs, corporate executives and policy makers to industrialists, scientists & doctors, lawyers, academicians, homemakers and university students.

Apart from her popular discourses in India, she is a well loved speaker in the United States, UK, Europe and other countries for the last several years. She has been invited to speak at prestigious organizations such as:

• World Economic Forum Davos • Google, California• Intel, California• MasterCard, New York• World Bank, Washington DC• Deutsche Bank, New York• Stockholm School of Economics• Princeton University, New Jersey• Shell UK, London• Coca Cola Company, Atlanta• Young Presidents’ Organization• Maersk Liner Graduate Programme

She has specially designed world-class educational programs on basic human values for school children and the youth. She has published books on life values for 5 to 8 year olds.

ver since human beings started to think rationally we have been curious Eabout things. This is true at both the

relative level, such as wanting to know how organisms have evolved, and the absolute level, like wondering about God and the nature of the universe.

There must be more to life than just growing-up, getting a job, taking a few vacations, retiring, and dying. Without a clearly defined purpose, we just meander through space and time. A purpose is a master plan for our life. Knowing our purpose helps define our goals. It makes life more enjoyable and effortless. Purpose is not something that others choose for us. We must choose it for ourselves. It emerges from an exploration of what we value most. When we define our purpose, it is important to not worry about how we will go about achieving it. Once purpose is ident i f ied and committed to the opportunities will show up. Mahatma Gandhi said,” Find purpose, the means will follow”.

Most people just pursue wealth. Their sole mission in life is to earn money. Some go beyond and have a powerful emotional motivator. A few are driven by intellectual goals. Others are in search of happiness. The rare one sets aside worldly concerns and is consumed with matters of the Spirit.

Ultimately you want to live a meaningful life. You want more zest, more fullness, greater happiness. You want to wake up in the morning excited and enthusiastic, jumping out of bed with a thirst for life that you haven’t felt since you were a child. Your purpose is your connection to something larger, something that will allow you to make your mark in the world, to truly make a difference.

To begin with, you need to expand your mind. Read inspiring stories of others who achieved greatness. Read the scriptures. In 2016 a study in England found that among teenagers, those who had a spiritual

A few are driven by intellectual goals.

Others are in search of

happiness. Therare one sets aside worldly concerns and is consumed with matters of

the Spirit.

Understand your inner personality. Strengthen your intellect. You may be inspired with a larger purpose but a well fortified intellect is necessary to organize your activities and pursue the goal with consistency. Are your actions selfish and self-centred or are you truly dedicated to a higher ideal? Establish yourself in selfless, dedicated work. The higher the goal the greater is your energy, creativity and power.

Feel one with a larger circle of people. Then you will feel less insecure and competitive. You will no longer fight imaginary enemies! Finally, understand that the world and all it

PHILOSOPHY & PHILOSOPHY &SELF MANAGEMENT

has to offer is impermanent, passing, and ephemeral. Its inherent value is zero. The Spirit, the only permanent factor in life, adds value to the world. Seek Spirit. The world will come to you unsought. You will achieve effortless success and happiness in the world while you gain Enlightenment.

Don’t waste any more time stumbling through life. Identify your purpose and strive to express it in your work, your play, and your relationships. Living life on purpose will translate to better well-being for you, your family, and your world.

background had a stronger sense of purpose. Invest your time in helping others. Another’s pain can lead you to awareness of all that you are blessed with. Cultivate a sense of awe and gratitude. When you connect with the divine Power, you are driven to make a positive impact on the world. Fix a higher ideal and work with like-minded people.

Identify your svadharma, your talent, your inner calling. The Mozarts of the world have pursued their passion from a young age. Uncover your passion like a sculptor, chipping away the stone to reveal the masterpiece underneath. Your life’s purpose is this masterpiece, lurking beneath the surface, waiting to be released.

Jaya Row will speak on ‘BHAGAVAD GITA CH 5’ at Dr. Kashinath Ghanekar Hall,

Ghodbunder Road, Thane (W)from 18 to 20 March, daily 8 to 9.30 pm.

All are Welcome For queries call 97691 79001 www.vedantavision.org

About 65% to 70% of your body is made

up of water, which is why you need a

minimum 8 glasses of water for your body to function

efficiently.

WELLNESS Q&WELLNESS Q&ABY NAMITA JAIN

WATER WORKS

By Dr. Namita JainManaging Director, Kishco Limited


Namita Jain, MD Kishco Ltd. has been actively involved in the wellness space for over 25 years. She is qualified from the American College of Sports Medicine, the American Council of Exercise, the Aerobic and Fitness Association of America, the Reebok and the Pilates UK institute. She has authored over 10 best-selling health and wellness books. In the field of rehabilitation, she offers consultations at Bombay Hospital. This column addresses concerns faced by many and her insights for facing the challenge. Learn the powers and perils of lifestyle changes through this Q &A column.

For information and registration on specialized workshops conducted by Namita Jain, contact PRISiM Healing Institute, Mumbai. .

how do you keep your water level topped up?• Start your day with a glass of water.• When traveling or exercising, keep sipping

water at regular intervals.• Get into the habit of having water with

every meal.• Thirst is not felt till after you are already

dehydrated, so drink water before you get thirsty.

• Increase your intake of fresh fruits and veggies, as they have a high-water content.

COMMON FITNESS MISTAKESTo achieve good health, steer clear of all the confusion, which may be present in your mind and reach your fitness goals as safely and efficiently as possible.

Mistake 1: Exercising the same body part every day is the fastest way to build strength.Fact: Exercising the same body part every day is the fastest way to cause injuries. To build strength, you need to work your muscles to the point of exhaustion - but then you need

Q: I have been advised my doctor to increase water intake and start exercising. Why is water beneficial for health? Can you suggest how I can increase water intake? Also, what are common mistakes people make while exercising? I am planning to enroll in the neighborhood gym and this information will be useful to me.

Any idea how many glasses of water you should consume in a day? Most people, you’ll barely end up with half your daily quota. What you should know, is that 8 to 12 glasses of water is roughly your daily requirement. About 65% to 70% of your body is made up of water, which is why you need a minimum 8 glasses of water for your body to function efficiently. Lack of water can cause severe problems such as dehydration, headache, low blood pressure, constipation and poor metabolic function. Even mild dehydration can prevent the kidneys from effectively purifying the blood, which means toxins will keep building up in your system. Symptoms like nausea or drowsiness can accompany these conditions.

Fact FileExcess salt can cause water retention and increase blood pressure. Restrict salt to 6 grams, roughly about 1 teaspoon, per day. Substitute extra salt with herbs and spices such as oregano, basil, coriander, and parsley, or use seasonings like lemon, garlic or pepper.

HOW DO YOU KNOW YOU ARE GETTING ENOUGH WATER?The colour of your urine is a good indicator of your hydration levels. If you are drinking enough fluids, the urine will be almost clear in colour. The less water you drink, the darker your urine will become. (Please note that some medications may affect the colour of your urine.)

EVERY GLASS COUNTS Water is important; you could start your day with a glass of water first thing in the morning. You can have your water warm with lemon, slightly chilled, or, at room temperature. Gradually, learn to build up your water consumption to 2 glasses before breakfast.

Sip the warm lemon water slowly, giving your body about 30 minutes to digest this before

breakfast. Lemon water is a great source of vitamin C and stimulates the bowels.

Bonus points • Shining hair• Glowing skin • Sparkling eyes

Fact FileGreen tea works well as water substitute. It can be enjoyed all through the day to aid digestion and is especially effective after a meal. Green tea is also rich in flavonoids - plant pigments that protect against infection.

to give those muscles a day of rest to recover from the training. “Over-training” can cause serious injuries and discomfort. That is why it is necessary to work the muscles every alternate day to provide for recuperation of muscle fatigue.

Mistake 2: The best way to a flat stomach is to do abdominal exercises every day.Fact: The abdominal muscles, like any other, need adequate rest and recuperation. It is therefore important to alternate your abdominal exercise days.

Mistake 3: Avoid warming-up.Fact: Gently stretching and warming up your muscles before you exercise is the number one defense against a variety of painful sports and exercise injuries. Not only do you prevent injuries, but you also prepare your body and mind with a warm-up.

Mistake 4: Push yourself very hard while exercising.Fact: It is important to listen to your body. If you are very tired after a workout, it could mean that you have pushed yourself too hard during the workout. An especially bad sign is if you are still tired after a day or two of the workouts. You should finish your workout feeling invigorated, not worn out.

Mistake 5: You forget breathing techniques.Breathing is an important aspect of fitness training - especially in the case of weight training and yoga. For example, while performing weight training exercises, you should exhale when you exert and inhale when you release muscle tension.


nderstanding detox is one of the most important steps in making the right choice for your body amongst the Uvast variety of programmes now available in the

market. Most of us believe that losing weight entails stringent diets that are meant to cause drastic transformations in our bodies. Diets do not necessarily result in fat loss and bear the question of sustenance. A detox on the other hand is much like servicing the various parts of your car. The more dirt gets washed, the more efficiently your car will work. Hormone production automatically falls into place and metabolism increases resulting in optimum fat loss.

HEALING TEHEALING TEMPLE

DETOX IN 10 DAYS

Priti K ShroffFounder & Managing DirectorPRISIM - The Healing Temple

At Prisim, our detox programme primarily focuses on holistic health

through various therapies. Therefore, through our ten-day

detox programme our members are subjected to various therapies in

accordance with their body's requirements.

By Ritu ZaveriYoga Teacher

& Writer

"Every little cell in my body is healthy,every little cell in my body is well,

Ooh! every little cell in my body is healthy,every little cell in my body is well.

I'm so glad, every little cell,every little cell in my body is well."

At Prisim, our detox programme primarily focuses on holistic health through various therapies. Therefore, through our ten-day detox programme our members are subjected to various therapies in accordance with their body's requirements. Each day they undergo different therapies for four hours. Our therapists are specially trained to accommodate the programme in accordance with the requirements of each member. They are asked to consume raw foods specially prepared at our institute. Caffeinated drinks like tea, coffee, alcohol, all forms of refined sugar, iodised salt and all refined flours are eliminated from the diet.

Members are asked to refrain from consuming all forms of meat. This is because these animals are injected with all kinds of steroids and chemicals that enter the human body and create greater harm. When these animals are killed, the pain and negativity that they endure, in turn, enters our body and creates a lower vibration.

Let's try and understand what toxins really are before we delve deep into the subject. Heavy metals such as mercury and arsenic, that can enter your body through teeth fillings and medicines are extremely harmful for your body. Pollutants like pesticides, opportunistics such as candida, virus and bacteria, electromagnetic vibrations emanated from your phones and televisions, food toxins such as GMO foods, adulterated goods, processed and packaged foods- are some of the primary causes of toxicity increasing in your body. Emotional imbalances like anger, depression and resentment lead to formation of extreme illnesses in the body. Once the body eliminates stored poisons that accumulate in the blood stream, the cells of the body are nourished, thus enabling the immune system to strengthen, rebuild itself and protect the body from germs and viruses. Deficiency is essentially nothing but undernourished bodies that are not receiving balanced proportions of nutrients from food. If we overeat, the digestive tract is also getting overloaded causing allergies of all sorts.

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HEALING TEMPLEHEALING TEMPLE

The primary goal to be achieved through a change in diet is to create an alkaline atmosphere in your body that will in turn enhance oxygenation and cell production.

Some of the treatments used during the detox programme include:

1) Ayurveda - Balancing the tridoshas- Vata, Pitta and Kapha is one of the most important goals of Ayurvedic health and healing. Through the treatments, we aim to target the following aspects:

• All the dhatus or tissues of the body must perform their respective tasks with efficiency

• All the srotas or channels of the body must be unblocked and free

• The agni aspect or the fire element- that drives digestion and metabolism must be functional

• The three malas- sweat, urine and feces- are adequately produced and eliminated

• Mind and body are in harmony with one another which in turn creates a sense of physical and emotional wellbeing.

2) Chi session- A special 'Chi-Machine' is used as a therapeutic massager which helps relax the muscles and increases blood circulation. Because the massage with the 'Chi-Machine' is performed while you are reclining and relaxed, weight is removed from the spine bringing about a sense of extreme comfort and pleasure.

3) Reflexology Disc- A reflex disc is an automatic response to a stimulant. Stimulating a foot reflex results in electro chemical nerve impulses and has a direct effect on the associated body organ, gland or part.

4) Rebounder- A technique that keeps your immune system healthy and keeps infections at bay. It checks the lymphatic system works to its fullest potential thus ensuring bacteria and toxins are filtered out of the body system.

5) Colon Care- Lack of sufficient enzymes result in digestive disorders. The digestive tract is like a processing plant that breaks down components of food, for absorption from the intestines into the blood stream, and expels waste products from the body, if the body is healthy. A variety of disorders may affect different parts of the tract. Some of these disorders disrupt the digestive process. At Prisim, we help our members with all digestive disorders through hydro colon therapy. The colon requires a cleansing program for maintaining a healthy body. For this, a high fibre diet, including plenty of fruits (unless Candida is an issue), vegetables and whole grains, as well as a balanced fibre supplement are introduced. Hydrotherapy is water therapy. Colon hydrotherapy then, is water therapy in the colon. The most common form of colon hydrotherapy is the enema. It involves the infusion of water into the rectum.

6) Wheatgrass- Dr Birscher, called chlorophyll 'concentrated sun power' He said that chlorophyll increases the function of the heart and affects the vascular system, the uterus, intestines as well as the lungs. According to him nature uses chlorophyll as a body cleanser, rebuilder and neutraliser of toxins. It purifies the blood, reduces blood pressure and aids circulation. It has several properties that aid dental care and can also be used as a steriliser. At Prisim, we provide freshly grown wheatgrass for consumption at home and also provide fresh wheatgrass shots to be consumed during the detox programmes.

7) Healthy Diet- Most importantly, we focus on a healthy raw food diet. As stated by Hippocrates- the father of medicine, " Your food shall be your medicine and your medicine shall



be your food." Today more than ever, we must pay heed to his word. Malnutrition strikes the weakest part of the body and results in terminal illnesses such as cancer, heart problems and diabetes. We can allow our bodies to heal themselves, while returning to a more holistic way of living and particularly by eating living foods. We must be discerning in our food choices. The threat of pesticides, danger of animal products, soil demineralisation and genetic engineering can no longer be ignored.

Protein is the most concentrated form of nourishment and requires the greatest amount of time for digestion. Protein consumed in excess contributes to toxic waste build-up in the body. Excessive protein can result in diseases as well. Protein is just as important as any other nutrient.

We propagate sun foods diet as well. Sun foods are raw plant foods grown under the influence of direct sunlight in a natural state. Sun foods are beneficial in improving digestion, managing weight, curing or preventing chronic degenerative disease, increased mental clarity and life extension, boosts the immune system, brings out creativity, clears emotional blockages and creates a happier and healthier life for you. This cuisine includes fruits, vegetables, seaweeds, nuts, sprouts and sprouted grains. Sprouts are full of enzymes and fibres. Greens on the other hand, are powerhouses grown in the earth.

8) Yoga- Yoga is a means to calm the mind, bringing the mind into a state of dhyana, paving the way to salvation. Patanjal, the father of yoga, explains yoga as an eightfold path which he has called Ashtanga Yoga.

At Prisim, we focus on Asanas and Pranayama as therapies that enhance body performance and calm the mind. Practising asanas cleanse the body. They increase circulation of fresh blood through the body, purging it of diseases and toxins. They restore strength and stamina to the body. Pranayama works on the physical, sexual, mental, spiritual, intellectual and cosmic level. 'Prana' or'breath,' is directly linked to the mind. Through the practise of Pranayama, the cells of the brain and the facial muscles remain soft and receptive and breath is drawn in or gently released.

9) Aromatherapy- Aromatherapy entails utilising the beneficial properties of a plant to treat common ailments, promote good health and emotional wellbeing. The captured living element of a plant is called the essence of the oil. Essential oils are extracted from different parts of the plant i.e., petals, seeds, bark, leaves, stalks, root, kernels and flowers. Owing to the smaller molecular structures, these oils penetrate the skin and fatty tissue easier than vegetable oils. These oils can be used while taking a bath, soaking your feet in water with the oil, blending it into your massage oil or via steam inhalation.

10)Practising Mindfulness- Mindfulness is one of the most important tools that must be utilised to discipline our mind. It is important to observe our thoughts and affirm positivity into our consciousness. It is equally important to be weary of the words we use, as words havea vibrational energy. The thoughts we think and the words we speak register in our cells as DNA. The act of crying serves to relieve the stress caused by an overabundance of chemicals created by a particular feeling. Never apologise for crying or shedding tears. We service our health as well as our emotions when we cry. At Prisim, we hold special therapy sessions termed as 'Emotional Catharsis' that cater to release of such pent-up emotions and pave the way for a lighter and healthier version of you.

11)Aura Scan- An aura scan is done on the first day to see what are the problem areas within the physical body and the energy blockages within the chakras. A few sessions of aura cleansing are a part of the 10 day detox programme to remove these energy blocks and begin a flow of healing energy. Then on the last day of the detox, another aura scan is done to see what transformation has come about in these ten days and to gain some perspective on what further lifestyle changes need to be made.

12)Bath Salts- Soaking in a tub full of warm water makes one feel good, as it rids the body of toxins. At Prisim, these bath salts are prepared in house for the benefit of our members.



13)Reflexology- Reflexology is the healing science in which, by the application of pressure to nerve reflex centres, functions of distant parts of the body are normalised. It is a miraculous means to maintain the body in operating conditions. It utilises the thumb or forefinger to apply fine, deep pressure to appropriate reflex points in order to remove blockages in energy pathways and open the channels to facilitate a natural healing process.

It is very important to allow the body to release pent up emotions, mental habitual patterns that are detrimental to health, and release toxic patterns that have formed in the body. Most importantly, it is critical to develop a friendship with your body and attempt to understand it better so that you might find the right form of healing for your body. We hope to be able to heal one individual at a time and help make this world a better place to live in.

"These ten days have been the best days of my life. They have been a complete eye opener and mind opener. Every therapy has been a new experience. Even the reflexology is very different from other spas as it caters to each other's needs. I really don't know how people are not aware of it. Cooking has been great. I did a few turns and wish I could have done more. The Yoga was wonderful. I will surely continue it in future. The ozone bath tab and full body massage was excellent. The blind masseurs are wonderful and motivate you so much. Even though they have so called limitations, they continue working with a smile on their faces. We have no reason to grumble. The bath salts are awesome! Essential oils are amazing! I've been getting up early feeling fresh and awake with a smiling face. Prior to the detox I would sleep much longer and wake up feeling tired and worn out.

The initial days of the detox were a bit overwhelming. I had headaches as a result of giving up my masala chai. But from the third day onwards, I didn't miss anything. I felt the

raw food was so nutritious and tasty as well. The hydro colonics was amazing! I was really scared the first time. But the therapist was so good that she kept distracting me and tried making me feel comfortable. The second session onward, I felt very comfortable. The therapist was taking necessary precautions in order to look after my issues. Mentally, physically and in every way, I was very comfortable. The therapists were excellent in every way. I felt a wonderful connection with them. They make you feel they are there for you. The talks we had in the Emotional Catharsis were very beautiful. I really feel light. I've never done anything like this before. Talking one on one and sharing, made me feel nice. I'm so glad I could open up. At the end, I really felt nice.

- Urvi Mody(Ten day detox member)

Prisim Healing Institute is an alternative health center that believes in healing one individual at a time.

We have various complementary therapies that help an individual to reach to their optimal health.• 10 Day Detox Programme• Brahma Satya Energy Healing• Aura Scan & Analysis• Aura Cleanse & Chakra Alignment• Crystal Healing Workshops & Crystal Grid• Yoga & Zumba• Sujok & Acupuncture• Sound Therapy• Art Therapy & Zentangle• Emotional Catharsis• Fairy / Angel Card Reading• Healing Meditations - Chakra Meditation, Naadabrahma etc.• Numerology• Hypnotherapy / Past Life Regression• Clearing of Spaces• Reconnective Healing & The Reconnection• Heartlight Ascension• Raw & Vegan Foods by Prana Kitchen

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