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BOMBAY STOCK EXCHANGE BROKERS' FORUM (BBF) | MUMBAI, INDIA

MAY 2024 | VOLUME: 13 • ISSUE NO. 2 •

INSIDE:

Decoding Liquid ETF

India's Silver Economy: Retirement to Reinvention

SEBI's Impact on India's IPO Market: Growth and Transparency

Digitization of Private Company Securities

10 Hacks to Develop

a Growth Mindset

for Leaders

FORUM VIEWS - MAY 2024

EXECUTIVE COMMITTEE

GOVERNING BOARD MEMBERS

BOMBAY STOCK EXCHANGE BROKERS’ FORUM (BBF)

GOVERNING BOARD 2023 - 24

FORUM VIEWS - MAY 2024

Ajit Sanghvi

MSS Securities

Pvt. Ltd.

Cyrus Khambata

Paytm

Money Ltd.

Ashish Rathi

HDFC

Securities Ltd.

Kamlesh Jhaveri

Jhaveri

Securities Ltd.

Ketan Marwadi

Marwadi Shares

& Finance Ltd.

Rajiv Kejriwal

SBICAP

Securities Ltd.

Purav Fozdar

Axiom Share

Broking Pvt. Ltd.

Neeraj Choksi

NJ India

Invest Pvt. Ltd.

Parth Nyati

Swastika

Investmart Ltd.

Dr. Pravin Bathe

Angel

One Ltd.

Kranthi Bathini

WealthMills

Securities Pvt. Ltd.

Vivek Gupta

GEPL Capital

Pvt. Ltd.

Virender Mansukhani

Mansukh Securities

and Finance Ltd.

Uttam Bagri

BCB Brokerage

Pvt. Ltd.

Tejas Khoday

Fyers Securities

Pvt. Ltd.

KISHOR KANSAGRA

Chairman | BBF

Pragya

Securities Pvt. Ltd.

KUSHAL SHAH

Jt. Secretary | BBF

Ratnakar

Securities Pvt. Ltd.

RAJIV CHOKSEY

Treasurer | BBF

KR Choksey Shares

& Securities Pvt. Ltd.

ANURAG BANSAL

Vice Chairman | BBF

SMC Global

Securities Ltd.

NIRAV GANDHI

Secretary | BBF

JM Financial

Services Ltd.

Saurabh Jain

SSJ Finance &

Securities Pvt. Ltd.

S. P. Toshniwal

Sunlight

Broking LLP

Roopkishor Bhootra

Anand Rathi Shares &

Stock Brokers Ltd.

Santosh Jayaram

GROWW

Shripal Shah

Kotak

Securities Ltd.

Ajay Kejriwal

Choice Equity

Broking Pvt. Ltd.

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

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

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FORUM VIEWS - MAY 2024

06

Your

Questions

Answered

DECODING LIQUID ETF

WHEN THE ONLY OPTION IS NOT FORWARD!

BBF Steering Committee

Kishor Kansagra (Chairman)

Anurag Bansal (Vice Chairman)

Nirav Gandhi (Secretary)

Rajiv Choksey (Treasurer)

Kushal Shah (Jt. Secretary)

Concept, Production and Editorial: Dr. Vispi Rusi Bhathena, PhD (h.c.)

Publisher Name: Dr. V Aditya Srinivas | Nationality: Indian

Address: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001. Maharashtra

Printer Name: Dr. V Aditya Srinivas | Nationality: Indian

Address: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001. Maharashtra

Editor Name: Dr. V Aditya Srinivas | Nationality: Indian

Address: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001. Maharashtra

Place of Publication: BSE Brokers Forum, 808-A, 8th floor, P.J. Towers, Dalal Street, Fort, Mumbai - 400001.

Maharashtra

st

Printing press: Kshitij Printers, 49 Parsi Panchayat Rd., Ashok Ind. Est., 1 Floor, Andheri (E), Mumbai - 400069.

Maharashtra

Design & Layout: Harshad Gajera

10 Feature

INDIA'S SILVER ECONOMY:

RETIREMENT TO REINVENTION

SEBI'S REGULATORY EVOLUTION AND TECH

ADVANCEMENTS SHAPING INDIA'S IPO MARKET

INTO A NEW ERA OF GROWTH AND TRANSPARENCY

DIGITIZATION OF PRIVATE COMPANY SECURITIES:

AN ANALYSIS

WHEN DOES A CONTRACT EXIST?

COMPLIANCE CALENDAR

18

Regulatory

Compliance

Leadership,

Empowerment

& Lifestyle

20

10 HACKS TO DEVELOP A GROWTH

MINDSET FOR LEADERS

EXPLORING THE SERENITY OF PRANAYAMA: A JOURNEY

INTO THE ANCIENT ART OF BREATH CONTROL

CLEANSE YOUR SPACE

Dr. Vispi Rusi Bhathena, PhD (h.c.)

Chief Executive Officer

Dr. V. Aditya Srinivas

Chief Operating Officer

and Chief Economist

The Intersection of Politics and Economy: India's Path to a $10 Trillion Economy: As the countdown begins towards the

eagerly anticipated nationwide elections in the world's largest democracy, India finds itself at a pivotal moment in its

economic journey. The upcoming election results in June are not just about political shifts; they hold the key to shaping

policies that will chart India's course towards becoming a $10 trillion economy. Economists and market participants are

keenly observing these developments, recognizing the potential influence on economic growth and stability.

Examining the Current Economic Landscape: Despite certain global headwinds, India's economy stands on a robust

footing. Recent economic indicators showcase promising growth trends, bolstering optimism for the nation's economic

prospects. However, these developments unfold against a backdrop of global market dynamics influenced by major

economies such as the United States and Japan. In the United States, the latest data reveals a significant uptick in inflation

to 3.2%, extinguishing hopes for a rate cut in March 2024. The Federal Reserve, confronted with mounting inflationary

pressures, maintains a firm stance on interest rates, which currently stand at 5.25%.The prospect of rate cuts is contingent

upon inflation moderating towards the Fed's 2% target zone, with any potential adjustment likely towards the latter part

of 2024.

FROM

THE

BBF SECRETARIAT

Conversely, Japan's recent decision to raise interest rates to 0.1% after 17 years aims to address inflationary concerns.

This move, while impacting borrowing costs for consumers and businesses, has also triggered a weakening of the yen

against the dollar. This fluctuation benefits exporters but poses challenges for consumers facing increased import costs.

In India, the Reserve Bank of India (RBI) has adopted a cautious approach by maintaining the repo rate at 6.5%. The RBI's

'wait and watch' strategy hinges on monitoring inflation trends closely before contemplating any policy adjustments.

Concerns persist about potential inflationary upticks in the coming months, underscoring the central bank's prudent

stance.

Positive Economic Indicators: India's core sector, encompassing vital industries like coal, crude oil, steel, and cement,

registered a robust growth rate of 6.7% in February, marking a notable improvement from January's figures. This

expansion underscores the resilience of India's industrial base and its capacity for sustained growth. Furthermore, global

financial institutions like Morgan Stanley have revised India's GDP growth forecasts upwards, citing the nation's inherent

strengths and stability. Projections for FY25 reflect this confidence, with GDP growth estimates revised to 6.8% from

6.5%. The current fiscal year (FY24) is also poised for robust growth, with estimates revised upwards to 7.9%.

Navigating Dynamic Economic Realities: As stakeholders await the election outcomes and monitor global economic

dynamics, it is evident that India's economic landscape is subject to multifaceted internal and external factors. The

interplay between policy decisions, market forces, and geopolitical developments will continue to shape India's economic

trajectory. The road to a $10 trillion economy necessitates astute policy formulations that balance growth imperatives

with fiscal prudence. As India positions itself as a global economic powerhouse, policymakers face the challenge of

leveraging inherent strengths while mitigating external risks.

Looking Ahead: In the coming months, as election results unfold and global economic conditions evolve, the narrative of

India's economic narrative will unfold. It is imperative for stakeholders to remain attuned to developments that shape

India's economic future. Stay tuned for further analysis and updates as India navigates through these pivotal times on its

transformative economic journey.

Conclusion: The confluence of politics and economics in India underscores the intrinsic link between governance and

economic outcomes. As the nation aspires to achieve monumental economic milestones, the upcoming elections serve as

a crucial juncture that will define India's trajectory towards realizing its $10 trillion economic vision.

FORUM VIEWS, MAY 2024 edition

From

to You...

BBF

FORUM VIEWS - MAY 2024

FORUM VIEWS - MAY 2024

ndia's financial landscape has been evolving at an

unprecedented pace in recent years. Among the notable

Idevelopments is the growth of Exchange-Traded Funds

(ETFs), a versatile financial instrument gaining traction among

investors. Within the realm of ETFs, the go-to option for parking

funds for a very short period has been the liquid ETF. Over the

years, liquid ETF has emerged as an attractive option, given

their minimal risk and optimal returns considering the tenure.

A liquid ETF, or Exchange Traded Fund, as the name suggests,

is a mutual fund whose units are traded on the stock exchange.

They invest in low risk overnight securities like Collateralized

Borrowing and Lending Obligations (CBLO), Repo and Reverse

Repo securities. The aim of a liquid ETF is usually to provide an

income commensurate with low risk, but at the same time,

providing a high level of liquidity.

When a stock market investor liquidates or sells off his

investment, he faces two issues before he reinvests his money

into a new stock. If you place your sell order on day 1. The stock

gets debited from your Demat account on day 2, and you

receive your sell proceeds in your margin account on day 3.You

can now keep the money in your margin account until you find a

new investment or initiate a payout to your bank account.

Now, as a stock market investor, your first dilemma will be that

this money will stay idle in your margin account and not earn

any interest and therefore not give you any returns. And the

second is that you will also have to spend a considerable

amount of time and energy in transferring money between your

trading account and your bank account.

Liquid ETF addresses these concerns, so when you place your

sell order on Day 1, you can simultaneously buy liquid ETF units

on the same day. On Day 2, your stocks are debited from your

Demat account and on Day 3 the liquid ETFs will be credited to

your Demat account and you will start earning returns in the

1. What are liquid ETFs? How does it help an investor

using this instrument?

form of daily income. So no money will sit idle. This basically

allows investors in the liquid ETF to start receiving returns on

their investments from the date of settlement of their trade.

Saket Kumar

Co-Founder

ETF Junction

DECODING LIQUID ETF

India's financial landscape has been

evolving at an unprecedented pace in

recent years. Among the notable

developments is the growth of

Exchange-Traded Funds (ETFs), a

versatile financial instrument gaining

traction among investors. Within the

realm of ETFs, the go-to option for

parking funds for a very short period

has been the liquid ETF.

2. What are the advantage the product, Liquid ETF offers

for any Investor?

Liquid ETF provides many advantages for an Investor, they are

• Help earn more returns: Your money is always earning you

interest, rather than sitting idle in the margin account or

earning negligible to no returns in a savings account. Also,

as soon as the settlement of the trade is cleared, liquid ETFs

start giving returns thus avoiding days of lost returns.

• Highly liquid: It is highly liquid, so you’ll be able to invest

when you find an attractive investment opportunity. You

FORUM VIEWS - MAY 2024

can buy and sell liquid ETFs both from the market as well as

the issuing Mutual Fund.

• Saves effort: Investors no longer need to make

unnecessary transactions or move money between the

trading account and the bank account. Liquid ETFs also

help avoid the need to go through the trouble of waiting for

cheques to clear, or making electronic transfers to a trading

account.

4. Can Liquid ETF be used for the stock margin

requirements? What percentage of Liquid ETF can be used

as margin money?

5. What are the things one should be careful about when

investing in Liquid ETF for any Investor?

6. How many Liquid ETFs are there presently and what is

the total size of the Industry?

Yes, Liquid ETF can be used for stock margin, this instrument is

approved by stock excahnges to be used as stock margin.

Approximately 90% of the amount can be used as margin

money.

Ans-Investors needs to be careful about, these things when

buying Liquid ETFs.

• Brokerage charges: Investors may have to pay brokerage

while purchasing liquid ETF units, and brokerage charges

vary from broker to broker. Most brokers may not charge

any brokerage on the purchase of these products thereby

increasing their appeal for investors. It is advisable for

investors to confirm the brokerage amounts that they will

be charged on trades in liquid ETF before making a

purchase. Besides, not only are liquid ETFs convenient to

purchase and hold, it is much quicker than moving money

between your bank and the broker.

• Fractional units: Liquid ETFs give returns in terms of

increase in units, which can add small fractions to existing

holdings; fractional units cannot be sold on the Exchanges.

However, the issuing mutual fund (MF) house purchases

back the fractional units

• As Liquid ETF fall under the category of Specified Mutual

Funds (Whose exposure to domestic equity shares is less

than 35%), any investment made after April 01,2023 will be

deemed as short term asset and will be taxable as per

income slabs applicable to investor.

The Liquid ETF is in the early stage as a product. Presently there

are around 10 liquid ETFs. The total size is approximately

18000cr. But with strong increase in the demat accounts as

being seen and more investors adding up to equity investing,

the product has a very strong future prospect.

• Can be used for margin: While buying or selling stocks, it

takes 3 days to complete a trade. To avoid the

inconvenience of issuing cheques or making electronic

transactions each time, some traders keep some margin

with their brokers. However, this margin (money) does not

earn any returns. You could purchase liquid ETF units worth

the margin you want to maintain and earn returns till the

time it is used to purchase stocks.

• Flexibility: Investors can use liquid ETFs for various

purposes, including as a parking place for idle cash, an

alternative to savings accounts, or as a short-term

investment option.

Liquid ETFs are suitable for both retail traders and investors. It

is being used by Portfolio Management Services (PMS)

providers, Futures & Options (F&O) brokers and institutions

which invest directly in equities. These funds are also suited to

the needs of High Net Worth Individuals (HNIs) as many times,

these investors may have funds lying idle either in a trading

account or they may be maintaining margin money with their

brokers on which no returns are earned. By parking funds in

liquid ETFs, investors can earn returns on idle funds while also

remaining liquid to benefit from attractive investment

opportunities. Liquid ETFs can help make trading more

profitable if used in the right manner. And that too, in a much

easier and convenient way!

3. Who should be using these Investment instrument? Is it

focussed for any specific investor segment(stock traders)

and why?

The Liquid ETF is in the early stage as a

product. Presently there are around 10

liquid ETFs. The total size is

approximately 18000cr. But with strong

increase in the demat accounts as being

seen and more investors adding up to

equity investing, the product has a very

strong future prospect.

With over 25 years of exemplary experience in the Mutual Funds industry, Saket

is a seasoned professional with a proven track record of building successful

organizations from the ground up. As a visionary Co-Founder of ETF Junction

since January 2022, he has led the establishment of a thriving platform,

revolutionizing the investment landscape for ETFs.

His journey began in 1997 at Kothari AMC, India’s first private sector mutual

fund, where he played a pivotal role in establishing the Mutual Fund business in

the Eastern part of India. Subsequently, as Zonal Manager for Franklin Templeton

and Zonal Head for Bharati Axa Investment Managers, he showcased

exceptional leadership in driving growth and fostering client-centricity.

In 2013, he founded Rastey Commuting Services, transforming it into a

prominent player in transportation across India over nine successful years. The

company was awarded at the BID convention awards in Paris in 2019,

recognized as the best in quality service among car rental services in India.

Saket completed his management education at IIM Kolkata in 2000. His

extensive expertise lies in navigating the complexities of the Mutual Funds

domain and orchestrating organizational expansion. With an unwavering focus

on innovation and excellence, he is committed to making a significant impact on

the Mutual Funds industry.

FORUM VIEWS - MAY 2024

he realm of options, futures, swaps and forwards is still a

largely undiscovered landscape fraught with regulatory

Tuncertainties. The Securities Exchange Board of India

(“SEBI”) has itself had to constantly update the relevant

regulations with this changing landscape. Judicial

pronouncements by various courts also aid in clarifying the

hitherto unknown situations involving option, future, swap and

forward contracts.

The above four contracts are types of derivative contracts.

Section 2 (ac) of the Securities Contracts (Regulation) Act,

1956 (“SCRA”) defines “derivatives” to include (A) a security

derived from a debt instrument, share, loan, whether secured

or unsecured, risk instrument or contract for differences or any

other form of security; (B) a contact which derives its value

from the prices, or index of prices, of underlying securities; (C)

commodity derivatives; and (D) such other instruments as

may be declared by the Central Government to be derivatives;

As per Section 2 (d) of the SCRA, “option in securities” is

defined as a contract for the purchase or sale of a right to buy

or sell, or a right to buy and sell, securities in future, and

includes a teji, a mandi, a teji mandi, a galli, a put, a call or a put

and call in securities. Futures contract is a contract to buy or

sell a commodity asset, or security at a predetermined price at

a future date. A forward contract is a customized contract

between two parties to buy or sell an asset at a specified price

on a future date. Though, the definitions of forward and futures

contract sound the same, there is a marked difference

between them. Futures are traded publicly on exchanges

whereas forwards are privately traded. Swaps derivatives are

customizable derivative contracts between two parties to

exchange liabilities or cash flows.

When SCRA was enacted, Section 20(1) (since omitted) had

1. What are option, future, swap and forward contracts?

2. What is the legislative history pertaining to the legal

status of options in India?

provided that, “Notwithstanding anything contained in this Act

or in any other law for the time being in force, all options in

securities entered into after the commencement of this Act

shall be illegal”. Section 16 of the SCRA provided that if the

Central Government is of opinion that it is necessary to prevent

undesirable speculation in specified securities in any State or

area, it may, by notification in the Official Gazette, declare that

no person in the State or area specified in the notification shall,

save with the permission of the Central Government, enter into

any contract for the sale or purchase of any security specified

therein. Further, Sub-section (2) of Section 16 of SCRA

declares that all contracts in contravention of the provisions of

sub section (1) entered into after the date of the notification

issued thereunder shall be illegal. Thereafter, a notification No.

S.O. 2561, dated June 27, 1969, titled ‘Restriction on Enter into

Contract for Sale or Purchase of Securities’ was issued by the

Ministry of Finance, Government of India under section 16 of

the SCRA, which inter alia provided that any contract for sale

or purchase of securities, other than such spot delivery

contract or contract for cash or hand delivery or special

delivery in any securities will be prohibited. Thus, forward

contracts and options were considered illegal.

By virtue of the Securities Laws (Amendment) Act, 1995,

Section 20 of SCRA was omitted, however, the 1969

notification continued to be in force which prohibited forward

contracts other than spot delivery contracts. In February,

2000, Section 18 A was introduced in the SCRA which

provided that notwithstanding anything contained in any other

law for the time being in force, contracts in derivatives shall be

legal and valid if such contracts are traded in a recognised

stock exchange and settled on the clearing house of the

recognised stock exchange in accordance with the rules and

bye laws of such exchange. Definition of the term “derivative”

was introduced and an amendment was made to the definition

of “securities” to include derivative. On 1st March, 2000 by

Notification No. SO184 (E), issued under section 16 of SCRA,

SEBI prohibited the entering of any contract for sale or

WHEN THE ONLY OPTION IS NOT FORWARD!

Zerick Dastur

Founder

ZERICK DASTUR,

ADVOCATES AND SOLICITORS

FORUM VIEWS - MAY 2024

purchase of securities, other than spot delivery contracts,

contracts for cash/hand delivery/ special delivery, and

derivatives contracts.

On 3rd October, 2013 by Notification No. G.S.R 219(E), issued

under section 16 of SCRA, SEBI inter alia rescinded the 1969

Notification and for the first time inter alia permitted contracts

in shareholders agreements or provisions in the articles of

association, providing for purchase or sale of securities

pursuant to the exercise of an option contained therein to buy

or sell the securities, on the terms and conditions set out

therein (i.e. put/ call options). The above Notification also

provided that nothing contained in the said notification shall

affect or validate any contract which has been entered prior to

the date of the said notification. The explanation to the said

Notification clarified that the above contracts will be valid

notwithstanding anything contained in section 18A.

The above legislative history finally culminated into the

landmark judgement dated 2nd February, 2023 passed by the

Division Bench of the Bombay High Court, in Percept

Finserve Private Limited v. Edelweiss Financial Services

Limited (2023 SCC OnLine Bom 319) which finally put to rest

the controversy surrounding enforceability of put options.

Edelweiss Financial Services Limited (“Edelweiss”) entered

into a share purchase agreement (”SPA”) with Percept

Finserve Private Limited (“Percept Finserve”) for purchase of

certain shares of Percept Limited in 2007 i.e. much before the

2013 Notification. The SPA contained certain conditions

subsequent that had to be fulfilled by Percept Limited and

Percept Finserve. The SPA contained a Put Option whereby an

option was given to Edelweiss to re-sell the shares of Percept

Ltd. to Percept Finserve for a purchase consideration of INR 20

crores along with 10% of internal return of rate, if there was a

breach of certain conditions subsequent as per the SPA.

As the conditions subsequent were not fulfilled, Edelweiss

exercised its Put Option, and issued a letter calling upon

Percept Finserve to give effect to the Put Option. As Percept

Finserve did not honour the exercise of the Put Option,

Edelweiss commenced arbitration proceedings. The sole

arbitrator in his award concluded that Percept Finserve and

Limited had in fact breached their obligations under the SPA,

but rejected Edelweiss's Put Option claim on the ground that

the same was illegal. The arbitrator held that the Put Option

was illegal as a) it constituted a forward contract, which is

prohibited under Section 16 of SCRA read with SEBI’s March

2000 circular; and Put Option being a contract in derivatives

and not being traded on recognised stock exchange in

accordance with Section 18-A of the SCRA was illegal.

The Award was challenged by Edelweiss under Section 34 of

the Arbitration and Conciliation Act, 1996 (“Act”) and was set

aside by the Bombay High Court on 27th March 2019. An

Appeal was thereafter filed before the Division Bench by

3. What was the landmark judgement passed by the

Bombay High Court in the matter of Percept Finserve

Private Limited v. Edelweiss Financial Services Limited?

Percept Finserve under Section 37 of the Act against the order

of the single bench. The division bench expressed complete

agreement with the views of the single judge in holding that

the Put Option was legal and enforceable. The Court placed

reliance on a previous discussion in MCX Stock Exchange

Limited v. SEBI (2012 SCC OnLine Bom 397), which held that

an ‘option’ is in the nature of a privilege, the exercise of which

is dependent on the discretion of the person who has been

granted the option. In case of an option, a concluded contract

arises only upon exercise of the option. It was thus held that

contract for repurchase of shares by Percept Finserve will

arise only on the exercise of the Put Option by Edelweiss upon

non - fulfilment of the conditions subsequent.

A further question that came up before the Bombay High Court

was whether the options contained in the SPA were contrary

to section 18 A of the SCRA. The Court held that Section 18 A

never prohibited entering into a call or put option but only

regulated trading or dealing in such option as a security. It was

also reiterated by the Court that put option clauses like the Put

Option in this case will be enforceable under the scheme of the

SCRA, irrespective of whether the underlying agreement is

executed prior to, or post the Notification issued by SEBI in

2013.

By the aforesaid judgement a crucial aspect of securities and

commercial law which plagued parties and the regulator in

equal proportion for decades was finally answered. This

judgement ensures that put and call options are considered

valid and enforceable irrespective of the change in law and

passing of several notifications.

Zerick Dastur is Proprietor of the Law Firm, practicing in the field of Court

litigation, Dispute Resolution, Arbitration, Securities law and Competition Law.

He is a triple Gold Medalist from Mumbai University having topped the Mumbai

University in Law. His practice covers diverse areas of Corporate, Commercial,

Securities law and Regulatory disputes. He is representing a number of clients in

the Port Sector, Infrastructure and Mining Sectors. He has represented clients in

domestic and international, commercial arbitration matters. He handles a

number of cases relating to securities law litigation and SEBI. He was a former

Partner at the Law Firm, J. Sagar Associates.

He has litigation experience before the Hon’ble Supreme Court, various State

High Courts Statutory Tribunals and Regulators. He has been involved in a

number of matters involving issues of Constitution Law. He has been involved in

landmark matters involving defence of Auditors and Corporate clients before

various Regulators/Civil/Criminal Courts and Tribunals in connection with

Corporate frauds. He has also advised various clients in matters involving

shareholder disputes and minority actions before the NCLT and CLB.

He also practices Securities Law and appears before the Securities Appellate

Tribunal and the SEBI. He has advised clients in connection with Competition

Law issues in everyday business operations including issues relating to anti-

competitive agreements and abuse of dominance by enterprises.

He writes for various newspapers and publications on issues relating to

Corporate law, Arbitration, Commercial and Competition Law. He regularly

writes on securities law for the publication run by the Bombay Stock Exchange

Brokers Forum. He is a regular speaker at events organised by Economic Times,

VC Circle, Indian Merchant Chambers, Consumer Resources, Corporate

Knowledge Foundation and the World Zoroastrian Chamber of Commerce.

He is a Member of the Law Committee of Indian Merchant Chambers and was

involved in the drafting of the Rules for the IMC International Arbitration Centre.

Views of the author are personal and do not constitute legal advice.

(Advocate Zerick Dastur and Advocate Smriti Singh)

Feature

INDIA'S SILVER ECONOMY:

RETIREMENT TO REINVENTION

STRATEGY

OPERATIONS

TACTICAL REALITY

ith proper planning and foresight today, India's silver economy can significantly

contribute to the country's GDP in the coming days. Senior or Silver Citizens must

Wreimagine their next 40 years and actively participate in the new emerging

narrative as Contributors.

By enabling older adults to remain active and engaged members of society, economies can

benefit from their continued contributions through Retirement 2.0 - i.e., life post 80 years.

The concept of a silver economy is relatively new, but its potential impact is immense. In

simple terms, the silver economy refers to the economic contribution of senior citizens in a

country. With India's population rapidly aging, and we all see this trend among our families,

people live much longer, healthier, and more active lives than ever. The silver economy

could be vital to the country's economic growth. At Dhiraa, we believe that with proper

planning and foresight today, India's silver economy can significantly contribute to the

country's GDP in the coming days. But for this to happen, Silver Citizens (defined as

individuals over 60 years) today need to reimagine their next 40 years.

In their report "The New Map of Life, 100 Years to Thrive," The Stanford Centre on Longevity

states that by the middle of this century, living to 100 will become very common, reflecting

the doubling of human life expectancy between 1900 and 2000. The report emphasizes

that it is essential to invest in future centenarians by optimizing each stage of life so that

benefits can compound for decades ahead while allowing for more time to recover from

disadvantages and setbacks in the journey.

Societies and Silver Citizens must reinvent and optimize themselves in this new age.

Reinventing and optimizing through proper long-term financial fitness and upskilling will be

critical factors in achieving financial security over the long term. This is essential for

maintaining a high quality of life in retirement and avoiding financial strain on social

support systems. Let us explore the ramifications a bit further.

In India, the retirement age is 60 (Retirement 1.0), but with advancements in healthcare

and longevity, people are living much longer than before. As per the World Population

Prospects 2022 (United Nations, 2022), by 2050, the number of persons aged 65 years is

projected to be more than twice the number of children under age 5. Now, more than ever,

senior citizens have more productive years to actively contribute to the economy rather

than sit back and retire. There we are at a juncture where the silver economy comes in - it

provides various opportunities for seniors to continue working, earning, saving, and

investing while also allowing them to be flexible and comfortable in their way of living.

A report of the Expert Committee on Longevity Finance in 2022 aiming to chart a long-term

vision for setting up a Longevity Finance Hub in GIFT IFSC states "that Gift City IFSC could

take the lead in 'longevity,' a relatively unexplored way of looking at business, targeting

untapped customers and providing customized services. Progressive investment banks,

pension funds, and insurance companies are already developing new business models to

cater to the Longevity industry." So clearly, far-sighted governments, businesses, and

society are breaking the stereotype of the retired Indian today and are recognizing and

harnessing the silver economy's power for the country's betterment. This includes

initiatives such as age-friendly workplaces and homes, lifelong learning opportunities, and

The Power of the Silver Economy: Silver Citizens must reimagine their next 40 years.

Why Silver Economy: it's high time we say, Why Not?

'Retirement' is Just a Number

Beyond Consumers to Contributors: Recognize their contribution to the Economic

Bottom Line

10

FORUM VIEWS - MAY 2024

MONA

KWATRA

Co-Founder

DHIRAA

SKILLDEV

PRIYA

SUBBARAMAN

Co-Founder

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