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

FEBRUARY 2023 | VOLUME: 11 • ISSUE NO. 11 •

RICHARD FRIESEN NADEERA ATHUKORALE COUMAR ANANDA

SEEMANT SHUKLA

SUBHASH UDHWANI

ELRONA D'SOUZA ADEBOLA ADETUNJI

RICHA PANT TARANJEET CHOHAN SHIKHA PANDEY

NIKITA GORDE BAKHTAVAR CHAUHAN SHRUTI NISAL

SUPER SECRET TRADING COMPUTER • CENTRAL DEPOSITORY SYSTEMS, SRI LANKA

FRANCE FINTECH ECOSYSTEM • DEMYSTIFYING LIFE IN DUBAI • TAXATION IN INDIA

FUTURE OF REAL ESTATE IN INDIA • FINANCIAL INCLUSION VIA ‘PHYTICAL’ PEER LEARNING

ART OF NETWORKING • SURVIVING TO THRIVING • IMAGE MANAGEMENT • 23 MUSINGS IN '23

RETAIL BROKING IN INDIA • CRYPTO CONUNDRUM • CORPORATE GREENMAIL

EXECUTIVE COMMITTEE

GOVERNING BOARD MEMBERS

BOMBAY STOCK EXCHANGE BROKERS’ FORUM (BBF)

GOVERNING BOARD 2022 - 23

Anup Gupta

Sykes & Ray

Equities India Ltd.

Cyrus Khambata

Paytm

Money Ltd.

Madhavi Vora

ULJK Securities

Pvt. Ltd.

Naresh Rana

Vishwas Fincap

Services Pvt. Ltd.

Neeraj Choksi

NJ India

Invest Pvt. Ltd.

Nirav Gandhi

JM Financial

Services Ltd.

Nithin Kamath

Zerodha

Securities Pvt. Ltd.

Ajit Sanghvi

MSS Securities

Pvt. Ltd.

Parth Nyati

Swastika

Investmart Ltd.

S. P. Toshniwal

Sunlight

Broking LLP

HEMANT MAJETHIA

Vice Chairman | BBF

Ventura

Securities Ltd.

LALIT MUNDRA

Chairman | BBF

Suresh Rathi

Securities Pvt. Ltd.

HARIN MEHTA

Treasurer | BBF

M/S. V. C.

Mehta

KUSHAL A. SHAH

Jt. Secretary | BBF

Ratnakar

Securities Pvt. Ltd.

KISHOR KANSAGRA

Secretary | BBF

Pragya

Securities Pvt. Ltd.

Anurag Bansal

SMC Global

Securities Ltd.

Ashish Rathi

HDFC

Securities Ltd.

Dr. Pravin Bathe

Angel One Ltd.

Purav Fozdar

Axiom Share

Broking 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.

Saurabh Jain

SSJ Finance &

Securities Pvt. Ltd.

Roopkishor Bhootra

Anand Rathi Shares &

Stock Brokers Ltd.

Santosh Jayaram

GROWW

Disclaimer: This magazine is meant for information purposes only and does not constitute any opinion or guidelines or recommendation on

any course of action to be followed by the reader(s). It is not intended to be used as trading or investment advice by anybody and should not

in any way be treated as a recommendation. The information contained in this magazine does not constitute or form part of and should not be

construed as, any offer for purchase or sale of any product or service. While the information in the magazine has been compiled from sources

believed to be reliable and in good faith, readers may note that the contents thereof including text, graphics, links or other items are provided

without warranties of any kind. Bombay Stock Exchange Brokers' Forum (BBF) expressly disclaims any warranty as to the accuracy,

correctness, reliability, timeliness, merchantability or fitness for any particular purpose, of this magazine. Bombay Stock Exchange Brokers'

Forum (BBF) shall also not be liable for any damage or loss of any kind, howsoever caused as a result (direct or indirect) of the use of the

information or data contained in this magazine. Any alteration, transmission, photocopied distribution in part or in whole or reproduction of

any form of this magazine or any part thereof without prior consent of Bombay Stock Exchange Brokers' Forum (BBF) is prohibited.

Printed, Published and Edited by Dr. VISPI RUSI BHATHENA, PhD (h.c.)

& Dr. V. ADITYA SRINIVAS on behalf of Bombay Stock Exchange Brokers' Forum (BBF),

printed at KSHITIJ PRINTERS, 49, Parsi Panchayat Road, Ashok Ind. Estate, 1st, Floor,

Andheri (East) Mumbai - 400 069. and published from Bombay Stock Exchange Brokers'

Forum (BBF), 808 A,P. J. TOWERS, DALAL STREET, FORT, MUMBAI - 400 001.

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

Write to us: We would be happy to hear

from you! Do send in your suggestions,

feedback and comments via email to

contact@brokersforumofindia.com

Visit us: www.brokersforumofindia.com

BBF Steering Committee

(Chairman)

(Vice-Chairman)

(Secretary)

(Treasurer)

(Jt. Secretary)

Lalit Mundra

Hemant Majethia

Kishor Kansagra

Harin Mehta

Kushal A. Shah

Follow us on:

@bbfindia

/bbfindia

/Bsebrokersforum

/bbfindia

FORUM VIEWS - FEBRUARY 2023

06

Global

Insights

AMAZING “SUPER

SECRET TRADING

COMPUTER”

ONLY YOU CAN ACCESS

IMPLEMENTATION OF

DIGITALIZATION AND

POST DIGITALIZATION

CHALLENGES OF THE

CENTRAL DEPOSITORY

SYSTEMS (PVT) LIMITED

(CDS) OF SRI LANKA

FRANCE FINTECH

ECOSYSTEM

DEMYSTIFYING

LIFE IN DUBAI

THE MAGNITUDE

OF MEDICAL

LABORATORIES

TO GENERAL

WELL-BEING

OF PEOPLE

HOW TO THINK

LIKE A RENAISSANCE

LEADER HOW TO

CREATE TEAM

TRANSPARENCY

EVEN IF YOUR

CULTURE

IS NOT OPEN

22 Insights

THE CHANGING

PARADIGM OF RETAIL

BROKING IN INDIA

28 Feature

TAXATION IN INDIA -

HISTORY, PRESENT

LAWS, DEDUCTIONS,

AND MORE

COMPLIANCE CALENDAR

39

Regulatory

Compliance

THE FUTURE OF REAL

ESTATE IN INDIA

ACCELERATING

FINANCIAL INCLUSION

VIA ‘PHYTICAL’ PEER

LEARNING PROGRAM

CRYPTO CONUNDRUM

WARRANTY

20

Your

Questions

Answered

EFFECTIVE GRIEVANCE

REDRESSAL MECHANISM

BOOSTS INVESTOR

CONFIDENCE

LIFESTYLE FACTORS IMPACTING

THE RISK OF CERVICAL CANCER

42

Living

Health Matters

Nurturing

Lifestyle

45

DUTY - YOUR PASSWORD

TO EXCELLENCE

40

Knowledge

Series by

Academicians

CORPORATE GREENMAIL: BLACKMAIL

OF A DIFFERENT COLOUR

ART OF NETWORKING

FROM SURVIVING TO THRIVING

23 MUSINGS IN ‘23

REAL COACHING IS ABOUT CARING

ASTHMA

CHANGE IS THE ONLY CONSTANT

IMAGE MANAGEMENT-

The wHole Story

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

Chief Executive Officer

Dr. V. Aditya Srinivas

Chief Operating Officer

and Chief Economist

FORUM VIEWS, FEBRUARY 2023 edition

WORLD AND INDIAN ECONOMY SHOWS STRONG MACRO DATA

Macro-Economic data seems to be improving world over with US inflation coming down from 7.1%

to 6.5% which is huge relief for the world economy as the FED may take softening of inflation to go

slow for rate hikes in 2023. This will also reduce the fear of USA entering recession which is being

widely speculated.

F R O M

THE

BBF SECRETARIAT

The World Bank has projected that Indian Economy GDP growth would be 6.8% which is very

positive since the world GDP is likely to be in the range of 2.2% to 2.5% while the US GDP was at

1.9% and China was at 3.9%. The last 20 years average GDP data of India has been in the range of 7

to 7.5%, while the world average has been in the range of 2 to 3%. Thus, even in the post pandemic

world Indian economy is one of the fastest growing economies in the world.

The Indian Economy is also witnessing strong macro economic data as inflation has eased from

5.88% to now at 5.72% which is one year low. This will give RBI same elbow room to have a wait and

watch situation in going for aggressive rate hikes. This is very important for the consumption

driven economy like India where majority of houses, vehicles are sold on loans. Thus, cost of capital

becomes very important for the long-term growth of the economy.

The index of industrial production data which track the demand in the manufacturing segment has

also witnessed an improvement from 2.4% to 7.1%. This is positive news as the demand in the

manufacturing sector rises. This will create more jobs in the economy.

The GST collection has been consistently rising and the latest GST collection of Rs. 1,50,000 crore

shows that the economic demand is going up and there is strong recovery in the economy in terms

of business activity.

On the BBF front:

BBF conducted 30 webinars towards investor education

and awareness initiatives which were attended by over

1500 participants.

From

to You...

BBF

Day/ Date

Interactive webinar(s) on

Allocation - operational impact of CC penalty norms w.e.f. 1-Feb-2023 and

related matters

Friday, 20th January

Running account settlement on 6-Jan, and New Reporting Format for

Segregation file from 20-Jan.

Thursday, 5th January

Global

FORUM VIEWS - FEBRUARY 2023

f you type “secret trading strategy” into the Google

search engine, you will receive over 27 million returns.

So now that I have your attention, what is this amazing

super secret trading computer that only you can access?

This super secret trading computer is only available to you.

And if you haven’t guessed by now, it is your brain.

So, why is it that marketers use the word secret when in

fact they are flogging it to everyone in the world on the

Internet? Because it works. We all want to be part of the

secret. We all want to be part of a special group.

I

will give you some clues. First, it was developed in its current

form about 50,000 years ago. And that is a bit before Intel and

Microsoft. This amazing computer was programmed over

thousands of years in a complex adaptive system. This system

created continuous feedback loops that perform much like the

self-learning artificial intelligence that we know today.

Or at least, your own personal version of it.

Your

brain is a remarkable pattern recognition, filtering, sorting,

compressing, and distorting machine. It can take trillions of

bits of information and turn them into digestible patterns,

pictures, and concepts. This remarkable machine is able to

look at market activity and create patterns of behaviors that

are repeatable and tradable.

Insights

AMAZING “SUPER SECRET TRADING COMPUTER”

ONLY YOU CAN ACCESS

Richard Friesen

Chief Executive Officer

Mind Muscles Academy

What next?

On one hand, we have a powerful machine, and on the

other hand, it is deeply flawed.

So, we have this amazing pattern recognition

machine that can not only make trillions of computations a day

but also comes with biases that do not serve us as traders or

investors.

So what can we do? At the

Mind Muscles Academy, we create software patches and

develop new processes that create maps and models of the

world that serve us better. We can create new subroutines in

this amazing computer by creating new neural connections

that create new ways to perceive market activity and create

actionable behaviors with improved maps and models of the

world of markets.

Your brain is a remarkable pattern

recognition, filtering, sorting,

compressing, and distorting

machine. It can take trillions of bits of

information and turn them into

digestible patterns, pictures, and

concepts. This remarkable machine is

able to look at market activity and

create patterns of behaviors that are

repeatable and tradable.

(San Jose, California, United States)

Are your beliefs about investing and

trading success holding you back?

90% of financial success is your mindset!

However, this remarkable secret trading computer comes

with some software bugs and flaws. In order to manage the

overwhelming amount of information it is bombarded with, it

has to delete, distort, and generalize this massive amount of

data in order to make it useful. This process of deletion,

distortion, and generalization means that we aren’t accessing

reality directly. It simply means that we are creating maps and

models of the world. Concurrently, we are also creating beliefs

about ourselves and the world and how we interact with it.

This belief system then returns its process to a continuous

feedback loop. With repetition, we believe the distorted

information in order to support the beliefs that we have created

about ourselves and the world.

FORUM VIEWS - FEBRUARY 2023

The process for doing this is what we call the three Golden

Keys.

AWARENESS: In order to shift a subroutine with its biases,

we first need to be aware of it.

ACCEPTANCE: Next, is acceptance.

AGENCY: Finally, we ask, what do we want?

Measuring what Matters:

At Mind Muscles, we break

down the process of awareness into three parts to make it

easier to bring them to our attention.

1. First, we check our physiology and our sensations.

2. Secondly, we focus on our emotions and feelings.

3. Finally, we look at the quality of the thoughts that are

whizzing in and out of our heads.

This means that we

aren’t fighting our own brains. We simply treat behaviors that

no longer serve us as unproductive subroutines left over from

our survival brain or our early training. We no longer need to

judge ourselves, we no longer need to berate ourselves, and

we can end all shame and blame. Once we understand there is

no moral failure, we can move on to improving our maps and

models of the world with less stress and self-judgment.

Agency is the

ability to intentionally decide how we experience both our

internal and external world. With this intention, we can decide

to create new behaviors that serve us better.

This intention can then be

measured and celebrated as we make progress. At Mind

Muscles, we use our Market Metrics application. But you can

use a spreadsheet or any other device. Create your specific

measurable intentions, then measure the progress on a regular

basis.

same software bugs, you end up “trying” but never

accomplishing the new patterns of behavior that serve you

better.

If you are willing to step into the

master traders mindset by

becoming aware of your state of

being, willing to accept those

parts of yourself that don't serve

you well, and willing to set an

intention to create new actions

that do serve you better, then this

secret is for you and you alone.

Needless to say, most of us, when we “try” to make these

changes hit a wall. Our old patterns are very powerful and

often connected to our survival mechanisms. They simply do

not want to change because “change” feels risky. This is

where it is helpful to step into a program that already knows

that you are successful, for example, a community that works

from the ground of being that you are in fact a successful trader

or investor already. From that vantage point, we can then start

to resolve the behaviors that no longer serve the trader. As long

as you are trying to resolve the software bugs by using the

Richard Friesen works with independent and professional traders who want to

increase their consistent profits. His neuroscience-based Mind Muscles™

model gives his clients the opportunity to reach their goals with online training,

simulations, interactive exercises, group support, and real-time decision

processes.

He has been a futures broker for Merrill Lynch, a floor trader on the CME, CBOT,

and the options floor of the Pacific Exchange where he built and sold a successful

options trading firm. He also served on the Exchange's board of directors. He also

founded and built a financial software company and is the inventor of ten

significant trading interface patents. This combined with his Master’s Degree in

Clinical Psychology, Neurolinguistic Programming Master’s certification, and

neuroscience focus brings a unique framework to trading success.

He is the CEO of the Mind Muscles Academy which offers live group meetings,

private coaching, and online courses for traders, investors, and entrepreneurs.

He is also the author of “A Private Conversation with Money” which has rave

reviews.

Mind Muscles Financial Freedom Investing and Trading Process:

1.

Expand awareness of your beliefs about yourself and the world

2.

Focus on the process, not the outcome

3.

Continually improve your strategy, execution, and mindset process

4.

Check your financial outcomes

5.

Repeat the four steps over and over again.

Feeling Comfortable allowing all my

trades to play out as pre-planned

So in the flow that I pull the trigger

easily on all setups that fit my plan

Physically relaxed, deep

slow breathing

Experience losses as a statistical

event only

Joy with my process, not P&L

So here is the amazing supper secret trading computer

that only you can access.

I invite you to step into the Master Trader’s and Investor’s

mindset.

And I can say that this is a super

secret even though I am publishing it and it can be discovered

by everyone. The reason this will remain a “secret” is that

most traders in the world want a super secret trading strategy

that doesn’t involve personal growth and change. Most

traders have already skimmed this blog and moved on. Most

traders have already filtered out this information because they

know that they are special and really don’t need to look at their

own operating system.

If you are willing to step into the master traders

mindset by becoming aware of your state of being, willing to

accept those parts of yourself that don’t serve you well, and

willing to set an intention to create new actions that do serve

you better, then this secret is for you and you alone. Few

others will be able to see it even though it is right in front of

their eyes.

Global

FORUM VIEWS - FEBRUARY 2023

n 1980s and 1990s when science fiction cartoons and drama

series were running on tv, being small kids, we were dreaming

Iof living in an era which could enable us doing things sitting at a

one place comfortably with an electronic device. This feeling can

be totally subjective, but the feeling of the experience would be

similar for most of us. At present the term Digitalization is heard

almost everywhere. Now adays with the abundance of Digital

avenues we would not imagine what it would have been in 1980s

and 1990s. However, the challenges remain when it comes to the

adoption of NEW.

The constant of the modern-day world is that the technology

evolves. Sometimes we may feel that the speed of evolution of

the technology is too fast that the humans would never catchup in

time. I would argue again that this is subjective. With the

emergence of the Web 1.0, the earliest version of internet, the

society at large was amazed by the future it would bring. The Web

2.0 ensured the rise of web apps and self-publishing plat forms,

and social media sites. The Web 2.0 has made the biggest impact

to the society so far in the history.

We saw a big boom in social media and in the second decade of

the millennia and the momentum also helped the Digitalization

efforts as well. In Sri Lankan context although the initiatives were

made, the progress was slow until the world woke up to the worst

pandemic in living memory.

The important question in any context would be “Why

Digitalization”. Till the pandemic the society at large had not seen

the true benefits of digitalization. Each and every entity, mostly

banks, tried its level best to promote the digitalized services from

the beginning of the second decade of the millennia. I remember

during 2010 to 2012 myself and few of my colleagues requesting

from the banks which we had our savings accounts and credit

cards to provide us with online access. This was mainly due to the

busy work life we had to go through those days that making bill

payments by visiting a counter in person during weekdays was so

difficult. An online access ensured that we could process

payments and other cash transfers at any time of the day from

anywhere. Further our expenses could be tracked on monthly

basis which helped us managing our finances as well. We could

also witness how Indian CSDs, CDSL and NSDL working on their

own unique Digitalization making it more convenient to Indian

investors. There are many viewpoints on why Digitalization

should exist. Some would say reduction of cost is the reason for

them to digitalize which I do not agree. In my opinion Digitalization

changes and enhances the business model of an organization

which brings multiple benefits to all stakeholders. I would simply

call it “Convenience”.

Insights

IMPLEMENTATION OF DIGITALIZATION AND POST

DIGITALIZATION CHALLENGES OF THE CENTRAL

DEPOSITORY SYSTEMS (PVT) LIMITED (CDS) OF SRI LANKA

Nadeera Athukorale

Deputy Head

Central Depository Systems (CDS)

of Colombo Stock Exchange

Sri Lankan Stock Market is not an exception when it comes to

Digitalization. The Central Depository Systems (Pvt) Limited

(CDS) a fully owned subsidiary of the Colombo Stock Exchange

(CSE) being the key infrastructure provider has also taken

important initiatives to digitalize its services.

The CDS had already laid the foundation for the Digitalization of its

business processes by taking crucial steps.

1. Digital Settlement Schedule Signing (DS3)

The CDS started its Digitalization journey in 2014 with the

enhancements of converting all archived physical documents to

electronic form. In 2015 the CDS came up with the DS3 system to

dispatch settlement reports to all settlement banks with Digital

Signatures as the very first entity in capital market industry to

Digitalization Journey of the CDS - Pre-Covid

Sri Lankan Stock Market is not an

exception when it comes to Digitalization.

The Central Depository Systems (Pvt)

Limited (CDS) a fully owned subsidiary

of the Colombo Stock Exchange (CSE)

being the key infrastructure provider has

also taken important initiatives to

digitalize its services.

(Sri Lanka)

FORUM VIEWS - FEBRUARY 2023

start the same. This initiative helped all four settlement banks at

the time to coordinate the daily interbank settlement

expeditiously and complete the process in a timely manner.

2. Digital Front Desk (DFD)

Digital Front Desk concept was introduced in 2018 in order to

enhance the process of documents submissions and transfers

from the depository participants to the CDS and vice-versa. The

traditional model of submitting documents physically to the CDS

was completely eliminated through this initiative. Further, the

preparation of all stakeholders for a major Digitalization drive was

also planned with the same.

3. e-Dividend Payments.

e-Dividend Payment concept was introduced in 2017 in order to

provide a better service to listed issuers by offering novel and

cost-effective solution and at the same time providing investors

with timely payment of dividends.

However, with the Covid pandemic the CDS had to expedite its

efforts further. In this backdrop The Securities and Exchange

Commission of Sri Lanka (SEC) and Colombo Stock Exchange

jointly formed a committee for the Digitalization of the Stock

Market in May 2020. Under the direction and the

recommendations of the SEC/CSE Digitalization Committee, the

CSE/CDS was able to design the business framework and

implement the Digitalized onboarding of individual local investors

in 2020. The individual foreign investor and local corporate

investor digitalized onboarding was done in 2021. e-IPOs and

Virtual AGMs are initiatives taken by the CDS during this

Digitalization drive of the stock market.

1. Digital Onboarding of CDS Accounts.

The initiative of Digitalizing of onboarding of CDS account holders

via the CSE Mobile App was implemented in 2020 in order to

make the entry to market more convenient with the reduction in

time to market. The main challenges were to come up with an

acceptable business process, especially concerning the KYC

guidelines. With the assistance of the SEC/CSE Digitalization

Committee, the CSE and the CDS could sign a Memorandum of

Understanding with the Department of Registration of Persons

(DRP) of Sri Lanka to authenticate online applicants via the DRP

database. This MOU was a significant boost to the development

of digitalization of the entire country since it gave precedent to so

many other initiatives as well. Currently, the digitalized

onboarding of local individual investors and local corporate

investors is almost 100%. The CSE and the CDS have already

made plans to improve the digitalized onboarding of other investor

categories in the next couple of years.

2. CDS e-Connect - Investor interactions between

stockbroker firms and the CDS.

The CDS e-Connect is the one-stop shop for all investors. This is a

feature included in the CSE Mobile App where CDS account

holders can conveniently access in order to interact and submit

instructions related to depository matters. Following are some of

the services provided via the CDS e-Connect.

a. Balance view.

b. Transaction history view.

c. Monthly statements for past six months.

Digitalization Journey of the CDS - Post-Covid

d. Account detail change instructions directly/ online from the

client.

e. Intra account transfer requests directly/ online from the client.

f.

Digital CDS 28 - e-Mail and Mobile Number change requests.

g. Research portal access.

h. e-Nominations submissions.

3. e-IPO Applications.

This enabled the investors to apply for an IPO from wherever they

are without having to go to a physical location. Moreover, the

issuers can also attract more investors via this facility since the

process is more convenient.

4. Virtual General Meetings.

The major drawback in having general meetings of companies

physically is that not every shareholder can participate due to

reasons such as distance and work. Moreover, it is a massive

burden for listed issuers logistically and financially to conduct a

General Meeting in the current context. Therefore, Virtual General

Meeting is the most comprehensive solution for issuers and

investors.

Not only in capital markets but, every industry has to go through

many challenges after implementing Digitalization. If

implementation was a challenge, convincing market participants

to adopt Digitalization in day-to-day activities has become more

than a challenge. Once you start the Digitalization journey, there is

no turning back. The more you digitalize more you will see the

gaps in existing business processes. However, one has to have

determination and perseverance to carry out the change

management through all these challenges.

1. Handholding elderly investors when using digitalized

services.

2. Maintenance of a dynamic Help Desk.

3. Conducting continuous awareness programs for

stakeholders.

4. Execution of improvements dynamically to the current

digitalized services.

Solutions to Post Digitalization Challenges and Continuous

Development.

Nadeera is currently serving as the Deputy Head of Central Depository Systems

(CDS) of the Colombo Stock Exchange (CSE), Sri Lanka. He has been with the

CDS for more than 14 years. During his tenure at the CSE, in addition to working

for the CDS, he worked as the Assistant Manager - Trading and Market

Surveillance Division in 2017 and as Assistant Manager - Special Projects

attached to the CEO’s Office from 2019 to 2021.

He has also played vital roles in projects listed below,

1. Implementation of Debt Securities Trading in Automated Trading System in

2012.

2. Implementation of the new core depository system for the CDS in 2014.

3. Establishing the Corporate Solutions Unit of the CDS in 2018, which is the first

new business initiative/ diversification of the CDS.

4. Introduction of the e-Dividend and e-IPO concept.

5. Implementation of Delivery Vs. Payment (DVP) in 2021.

6. Leading the business side of the Digitalization Projects.

He was appointed as a member of the SEC/ CSE Joint Committee for

Digitalization in 2020, which took significant initiatives during 2020-2022.

He has a B.Sc in Business Administration (Business Economics) Special Degree

from University of Sri Jayewardenepura, Sri Lanka and has completed the MBA

from Cardiff Metropolitan University, United Kingdom.

Global

10

FORUM VIEWS - FEBRUARY 2023

“Spotlight on Kriptown a unique French financing platform

that allows start-ups and SMEs to strengthen their equity

capital, with the largest number of investors, through the

issuance of digital assets - a potential solution for the

growing Indian start-up and SMEs equity market.”

India Advisory Paris is specialized in helping French tech

startups expand in India, we believe that Kriptown will

expand its foot print in Europe both at the regional and

national equity market for supporting the start up and SME

growth.

The European Parliament and Council have published the

Regulation 2022/858 on a pilot regime for market infrastructures

based on distributed ledger technology (DLT Pilot Regime). This

is part of a package of measures introduced by the European

Commission to enable the development of digital finance,

particularly in terms of innovation and competition, while

reducing potential risks.

The DLT Pilot Regime establishes the conditions for permission

to operate a DLT market infrastructure and limitations on the DLT

financial instruments that can be admitted to trading and settled

on the DLT. It also sets out rules for cooperation between DLT

India Advisory Paris is sharing in this article the point of

view from Kriptown founder Mark Kepeneghian and

Kriptown Legal head Cassandre Vassilopoulos.

market operators, competent authorities, and the European

Securities and Markets Authority (ESMA).

In order to allow innovation and experimentation, the DLT Pilot

Regime allows for the trading and settlement of transactions in

crypto-assets that qualify as financial instruments under

Directive 2014/65/EU (MiFID II), also known as true digital

securities. For other crypto-assets that do not qualify as

financial instruments, such as stablecoins, e-money tokens, and

utility tokens, a dedicated regulatory framework at the EU level

is being developed. This framework, known as the Markets in

Crypto-Assets Regulation (MiCA), will provide a harmonized EU

framework for these types of assets.

Insights

FRANCE FINTECH ECOSYSTEM

Coumar ANANDA

Co-founder & Partner

India Advisory Paris

The DLT Pilot Regime allows for the digital representation,

namely the tokenization, of financial instruments on distributed

ledgers or the issuance of traditional asset classes in tokenized

form. This is expected to create new opportunities to improve

the efficiency of trading and post-trading processes. However,

existing union financial services legislation was not designed

with blockchain technology and crypto-assets in mind and

contains provisions that could limit their use. The DLT Pilot

Regime was introduced to allow for the use of such technology,

while also accounting for potential risks.

Not all financial instruments will be eligible for trading and

settlement on the DLT. Only less liquid bonds, shares and fund

units will be allowed. Furthermore, the aggregate market

capitalization of these assets shall not exceed EUR 6 billion at

the moment of admission to trading, or initial recording, of a new

DLT financial instrument. This is to ensure that the DLT Pilot

Regime allows for innovation and experimentation, while also

mitigating potential risks.

In concrete terms, the DLT Pilot Regime creates 3 new

agreements:

DLT multilateral trading facilities ("DLT MTF"), which are

multilateral trading facilities which admit trading of DLT

financial instruments;

DLT settlement systems ("DLT SS"), which are settlement

systems that settle transactions of DLT financial

instruments;

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equity market.

(Paris, France)

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