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SHUBIKA

SWETA

Financial Literacy

Leadership Today

NANDINI

Personal Finance

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

MAY 2023 | VOLUME: 12 • ISSUE NO. 2 •

SHWETA

Personal Branding

SHILPA

AKASH

TRISHA

Derivatives

Website for Stockbrokers

Finance Act 2023

CATHY

SUSAN

ANSUL

KAVITA

Conscious Leadership

Me to We

Technology

Services Exports

GABOR

DAVE

SARAH

ZALINA

Banking in Asia

Sustainable HR

AI in Legal Sphere

Climate Bonds

FORUM VIEWS - MAY 2023

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

FORUM VIEWS - MAY 2023

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

team@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 - MAY 2023

06

Global

Insights

RESPONSIBLE BANKING IN

ASIA - HOW CAN BANKS BE

THE KEY ENABLERS OF THE

SUSTAINABLE TRANSITION?

24

Your

Questions

Answered

AIF REGULATORY

UPDATES, 2023

LACK OF DISCLOSURE MAY

RESULT IN MANAGEMENT

EXPOSURE

IMPROVE SUSTAINABLE HR

IMPACT: CHANGE YOUR

CONVERSATIONS

ARTIFICIAL AND EMOTIONAL

INTELLIGENCE

IN THE LEGAL SPHERE

CLIMATE BONDS

INITIATIVE

LIVING WITH INTENTIONAL

CONSCIOUSNESS

“ME” TO “WE” -

A LEADERSHIP

TRANSFORMATION

MILESTONE

WHY DIVERSE OPINIONS

MATTER: LESSONS FROM

THE RENAISSANCE

28 Insights

SUPER ENABLER, NOT A SILVER BULLET: PUTTING TECHNOLOGY

IN PERSPECTIVE

SERVICES EXPORTS TO POWER INDIA’S FOREIGN TRADE

DERIVATIVES IN INDIA: THE ROAD AHEAD

WEBSITE A GAME CHANGER FOR STOCKBROKERS

BULLISH ON INDIAN CONSUMPTION STORY

42 Feature

FINANCE ACT 2023 -

A WISHLIST FULFILLED?

PERSONAL FINANCE - KEY TO

BEING FINANCIALLY FREE

THE POWER OF PERSONAL

BRANDING USING LINKEDIN

FINANCIAL LITERACY FOR

CHILDREN IS BECOMING

INCREASINGLY ESSENTIAL

IN THE ERA OF DIGITAL

TRANSFORMATION

PROVISION FOR BAIL

UNDER PMLA

CHANGING DYNAMICS OF

GROWTH: AN OVERVIEW

38

Economy

& Society

COMPLIANCE

CALENDAR

52

Regulatory

Compliance

CAN BLOOD TESTS HELP IN

EARLY DETECTION OF CANCER?

54

Living

Health

Matters

Nurturing

Lifestyle

56

ALL YOU HAVE TO DO IS BE HAPPY!

THE EVERYTHING AND

EVERYTHING ELSE OF

LEADING TODAY

GUIDANCE FROM YOUR

GUARDIAN ANGEL

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

Chief Executive Officer

Dr. V. Aditya Srinivas

Chief Operating Officer

and Chief Economist

FORUM VIEWS, MAY 2023 edition

Indian Economy is the Bright Spot in current World Gloom: The Indian macro-economic variables

seem to be showing much more resilience than it was expected. The full year GDP projection has

been kept at 6.5% by RBI and the World Bank has also projected the growth rate at 6.3%. This is

during the time when the world GDP is struggling around 2.2%.

F R O M

THE

BBF SECRETARIAT

The RBI’s move of not to increase the interest rates came as a huge surprise for the markets and

economy; this will surely help the economy to get more time to absorb the earlier rate hikes of 250

basis point. The repo rate which was at 4% is now at 6.5%. In the Indian economy the cost of capital

is very important as it can really affect the domestic demand and consumption cycle which is in turn

credit based. The CPI inflation last time eased a bit from 6.52% to 6.44%, but it is still higher than

the RBI comfort zone of 6%. Going ahead if the inflation eases out then RBI will be more

comfortable to set the downward interest rates cycle.

The GST collection is at Rs. 1.60 lakh crores, this is the twelfth consecutive month when the GST

collection has been above Rs. 1,40,000 crores mark. GST indicates business is thriving and

economy showing resilience against the slowdown in global economy.

Globally the central banks have reached almost close to their terminal rates and may be going

ahead in 2023; we may see the interest rates going downwards. This will really boost the global

demand and consumption and the world economy may see better days in terms of economic

prosperity. The key question at the global level is whether USA will be able to avoid the inflation, or

it will be into recession.

From

to You...

BBF

On the BBF front:

Day/ Date

Interactive webinar(s) on

Framework for Adoption of Cloud Services by SEBI Regulated Entities (REs)

(With BSE Ltd.)

Tuesday, 18th April

BBF conducted 33 webinars towards investor education

and awareness initiatives which were attended by over

1500 participants.

FORUM VIEWS - MAY 2023

Global

FORUM VIEWS - MAY 2023

A new way to look at banking

Environmental and social risks have been a part of banking for a

considerable time, starting mainly with project lending.

Droughts can create repayment problems for farmer borrowers,

storms can destroy collateral value, environmental or labour-

related penalties can also create project risks. The increasing

severity of environmental anomalies and the improved

scientific understanding about them have highlighted such risks

and positioned them in the regulators’ agendas. Climate change

is probably the most well-known element of the environmental

crisis, but we should not forget other intertwined problems

such as the overuse of resources and the alarming loss in

biodiversity. India is particularly vulnerable to climate change-

related physical risks and there is a growing recognition that

financial institutions need to internalise risks early enough to

avoid impacts on their balance sheets in the near future.

However, there is more on the agenda of banks beyond risk

management. Instead of only looking at environmental and

social issues as potential risks for the banks’ own earnings, a

growing number of financiers take the so called double-

materiality perspective, in which the focus is on the impacts

that loans, investments or other financial transactions might

have on the people and our planet.

As countries are designing climate change policies around the

world, banks and other financial institutions are also

increasingly looking into these plans and pathways in order to

assess the aforementioned risks and also to understand what

the transition means for their business. For instance, the

Government of India, as part of its Nationally Determined

Contributions (NDCs), has set a target of a 45% reduction in

their emissions and a net zero target by 2070.

In the Indian context, the estimates of financial flows needed to

enable the energy transition vary depending on growth,

technology options, and systematic transitions across different

sectors. Estimates range from USD 6-8 trillion during the 2015-

2030 period to implement projects required to transform current

energy systems, to USD 10 trillion - 12 trillion to reach the 2070

net-zero goal. Even though these are just estimates and are not

directly comparable, they clearly indicate that climate finance

flows needed for mitigation are substantial and in the order of

tens of trillions by 2050. At the same time, climate finance for

adaptation needs in India are also estimated to be above INR

85.6 trillion or more than USD 1 trillion. Clearly, this magnitude

calls for the mobilizing of private finances towards the

achievement of the SDGs and the Paris Agreement Goals.

The sustainability challenge for the financial sector

Insights

RESPONSIBLE BANKING IN ASIA - HOW CAN BANKS BE

THE KEY ENABLERS OF THE SUSTAINABLE TRANSITION?

Gabor Gyura

Sustainable Finance Consultant

United Nations Environment

Programme Finance Initiative

(UNEP FI)

The Reserve Bank of India (RBI) has also recently highlighted

the importance of financial institutions as effective conduits for

channelling finance to carbon efficient sectors and industries in

alignment with national policies and goals, and has also

emphasised the need to improve the management of financial

risks in banks’ books which may originate from climate change.

In line with this stance, the RBI has taken policy steps and now

a number of important initiatives are underway that seek to

address and report on climate-related and environmental risks.

There seems to be a general consensus that banks and financial

institutions will play a key role in financing the transition to a

low-carbon economy and supporting the national climate

commitments in the country.

This “inside-out” perspective requires new types of skills and

expertise. Globally speaking, there are hundreds of thousands of

As countries are designing climate

change policies around the world,

banks and other financial institutions

are also increasingly looking into

these plans and pathways in order to

assess the aforementioned risks and

also to understand what the

transition means for their business.

(Budapest, Hungary)

FORUM VIEWS - MAY 2023

bankers that will need to be trained every year if climate and

other sustainability commitments are to be achieved. Studies in

other countries point at these skills gaps: in Ireland , 67% of

respondents said supply of staff was inadequate, and upskilling

was required; in Hong Kong , more than 40% of respondents

said they “believed this area would suffer from a future

shortage of expertise”. The G20, which is now under the

presidency of India, has also realized the importance of capacity

building as a priority, and its working groups target sustainable

finance capacity building. Therefore there is a very clear need to

support initiatives that can enable banks to meet their

sustainability challenges.

With over 320 signatory banks representing almost half of the

global banking industry, the UN’s Principles for Responsible

Banking put the aforementioned double materiality concept to

its centre. These Principles aims to accelerate a positive global

transition for people and the planet, by urging and supporting

banks to align their business with goals such as those set by

the Sustainable Development Goals and the Paris Agreement.

Principle 2 of the Principles expresses the need for continuously

increasing positive impacts while reducing the negative

impacts resulting from banks’ activities, products and services.

Accordingly, banks are to set and publish targets where they

can have the most significant impacts. A growing number of

Asian banks are part of the Principles for Responsible Banking:

there is a total of 50 signatories from Asia as of March 2023.

Operating as a responsible bank that maximizes its net positive

sustainability impact comes with several challenges, so the

aforementioned skills gap is obviously there. The United

Nations’ Environment Program Finance Initiative (UNEP FI)

deliberately intends to provide the necessary support to

signatory banks to deliver on the commitments. Member banks

have access to a wealth of guidance documents, handbooks

and practical tools that enable impact analysis and target

setting in key sustainability areas.

Signatory banks can also participate in a wide range of capacity

building programs. In Autumn 2022, banks in the Asia-Pacific

region participated in a climate target-setting program, learning

how banks can set and implement mid- and long-term climate

targets for their portfolios in line with the Paris Climate

Agreement while taking into account their countries’

development pathways and the principle of just transition.

Also, in early 2023 the PRB Academy had an in-person

conference and training in Mumbai, India. This Academy has

been developed by UNEP FI in partnership with GIZ and the

Chartered Banker Institute. The training pilot in India was

delivered in collaboration with the Indian Institute of Banking &

Finance (IIBF) with the goal of equipping bankers with the

expertise and tools necessary to address the triple planetary

crisis of climate change, nature loss, pollution and related social

issues. More than 150 banking professionals from different

departments including more than twenty CEOs and board level

members from both public and private sector banks across

India took part in this pilot. The high-level event included

remarks by Mr. Saurav Sinha, ED, RBI and Mr. Sunil Mehta,

The UN’s Principles for Responsible Banking

Supporting banks so that they can support the transition

Chief Executive, Indian Banks Association (IBA), who

highlighted the significance of such capacity building

programmes in India.

Another key area of work for India is a new capacity building

program on financial health and inclusion for banks. This

programme aims to equip banks with the practical knowledge

to design targets and strategies that will ensure that

individuals, micro and small enterprises have access to banking

products and services via accessible channels, which are

affordable and effective, and where customers can smoothly

manage their current financial obligations and have confidence

in their financial future. The next capacity building program is to

be launched in May 2023, putting energy efficiency in the

focus.

The UNEP FI Regional Roundtable Asia Pacific will be held in

person on 24-25 May in Seoul, South Korea. The event will

convene UNEP FI members, policymakers, civil society

organisations, and academia to discuss the advancement of

sustainable finance, its challenges, and solutions in Asia

Pacific.

In addition to having the opportunity to network with the

finance community in the region, speakers and participants will

explore important issues specific to the region, including net-

zero banking and insurance, ASEAN taxonomies as guiding

frameworks for the finance sector, understanding and managing

nature-related risks, financial health and inclusion, and more.

UNEP FI is keen to engage with financial institutions and other

financial stakeholders in India to support them in their

sustainability journeys. In case of any questions, please feel

free to reach out to the APAC Regional Coordinator, Nirnita

Talukdar (nirnita.talukdar@un.org)

What is coming in India and in Asia?

1. See https://www.skillnetireland.ie/publication/future-sustainable-finance-

skills-report/

2. See https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines -

and-circular/2020/20200618e1a1.pdf

Gabor Gyura is UNEP FI’s global capacity building consultant, designing and

running training workshops for signatory banks of the Principles for Responsible

Banking. Besides his current consultancy role, since 2021 he also acts as part-

time assistant professor at the Budapest University of Technology and

Economics, teaching and researching sustainable finance. Previously he spent

15 years in financial services regulation in various areas and was founding head

of the Sustainable Finance Department at the Central Bank of Hungary. He has a

masters degree in Economics and also holds a PhD in Earth Sciences.

Co-Author: Nirnita Talukdar is the Regional

Coordinator- Asia Pacific, at UNEP- FI (The United

Nations Environment Programme Finance Initiative).

As a part of this role, she is leading the work on

implementation of UNEP FI’s strategy to mobilize

sustainable finance in Asia Pacific, and provides

support to financial institutions in their journeys

towards achieving the Paris Agreement Goals and

the SDGs.

She brings over 12+ years of experience working in the development sector with

thematic expertise in sustainable finance, along with proficiency in research on

financial sector accountability. Through her work, Nirnita has helped draw

attention to the bond market’s role in climate transition and has worked

extensively on strengthening the narrative and policies on sustainable finance in

Asia. She has coordinated research and co-authored publications on Asian cross-

border financial flows, health and safety of migrant workers, analysis of key non-

financial disclosure policies, among others.

Global

FORUM VIEWS - MAY 2023

With the

Governance and

Guidance for

Growth through

Human

Capability

(G3HC) Team

ew question the increased attention business leaders

are giving and proliferation of HR issues. In the last few

Fweeks, I have participated in conferences, reviews,

and webinars where I am clearly seeing this firsthand.

Insights

IMPROVE SUSTAINABLE HR IMPACT:

CHANGE YOUR CONVERSATIONS

Dave Ulrich

Rensis Likert Professor

Ross School of Business,

University of Michigan

Conversations about HR can and

should pivot. Each of the seven

stakeholders (not limited to

employees, business leaders, or HR)

can engage in a conversation about

how their needs are met through

human capability initiatives. Based on

these conversations, more strategic

human capability investments (like a

financial portfolio) and more

intentional disclosures (like those with

SEC reports on human capital,

Compensation and Discussion Analysis

[CD&A], or ESG) can be made.

(Alpine, Utah, United States)

Joe Grochowski

Managing Director

The RBL Institute

(Scranton, Pennsylvania,

United States)

Norm Smallwood

Co-founder

The RBL Group

Mike Panowyk

Senior consultant

The RBL Group and

G3 Human Capability

(Scottsdale, Arizona,

United States)

Scott Brown

Executive Vice

President of Sales

The RBL Group

(Provo, Utah, United States)

Kevin Allgaier

Founding Member &

Managing Director

Allgaier Consulting

At conferences for senior executives (e.g., World Economic

Forum, World Business Forum), recent topics include

disciplined people practices, managing talent, goal setting

and performance management, transformational leadership,

resilience, inequality, collaboration, and so forth.

In doing reviews of 2022 and previews of 2023, many

thoughtful colleagues are making lists of their HR agenda:

employee experience, social responsibility (ESG, DEI), skill

(Provo, Utah, United States)

(Provo, Utah, United States)

FORUM VIEWS - MAY 2023

based organizations, digitally enabled HR services, retention

and removal of people, people analytics, and more.

In a recent webinar, I asked participants to answer two

questions:

1. In the last few days (weeks/months), what have been

your priority topics (things you are working on as a

company or individual)?

Answers included talent, talent review, employee

engagement, great resignation, headcount, improving

leadership, sharing vision, annual salary increases, and

DEI.

2. Whom have you been having conversations with about

these topics?

Answers included HR team, business leaders, and

employees.

But many of the issues in today’s dialogues are extensions

of previous discussions. Like other fields, HR may be prone

to fads, quick fixes, shiny objects, or the “initiative du jour”

where re-labeling and re-packaging occurs.

So how can business and HR leaders avoid quick fixes,

evolve ideas, and cumulate ideas so that they have more

sustainable impact? Let me suggest three steps for making

progress.

Classifications or typologies affect daily lives and all types of

work and make choices or work easier by organizing

separate items into categories:

• Restaurant menus are organized into food categories:

appetizer, drinks, main course, or dessert.

1. Create a taxonomy (or typology) to classify HR work.

• Libraries or bookstores are classified by type: fiction

crime, mystery, poetry, or science fiction; and and

nonfiction biography or self-help.

• When choosing classes or a career, individuals can

search by category: STEM, business, education, art, etc.

• Investors can create an investment portfolio based on

categories: equities, bonds, commodities, cash, etc.

• Biology uses the Linnean system of ordering plants and

animals from domain to species.

• Psychology uses the Diagnostic and Statistical Mental

Disorders (DSM5-TR) system to define types of

psychological disorders.

• Engineering work is categorized into chemical, civil,

electrical, and mechanical specialty areas.

• Accounting assesses information in balance sheets,

income statements, cash flows, and equity documents.

• Etc.

In each case, the categories are stable, and innovations

occur on the items within the categories.

We have suggested the need to organize disparate people

and organization initiatives into an integrated human

capability framework with four elements that are stable and

37 initiatives that change and can be classified into the four

domains (figure 1).

We have validated this framework with survey methodology

(Organization Guidance System work with over a thousand

organizations) and machine learning (Governance and

Guidance for Growth through Human Capability [G3HC] work

with over seven thousand organizations). The framework

provides stability with the four domains and innovation with

the 37 initiatives.

Figure 1: Human Capability Framework

10

FORUM VIEWS - MAY 2023

2. Link human capability to stakeholder value.

Often investments in any of the four human capability

pathways have scorecards, dashboards, benchmarks, and

best practices around accomplishing each initiative. But

measuring the impact of initiatives on outcomes that matter

provides more insightful information to an organization.

The impact on an organization’s stakeholders determine

outcomes that matter. Organizations are comprised of

stakeholders who each get value from their interaction with

the organization. Human capability investments should be

linked to the value they create for each stakeholder (see

figure 2).

Our (and others’) research has demonstrated that

organizations that invest in human capability will deliver

these seven stakeholder outcomes.

Figure 2: What does each stakeholder receive from improved human capability?

3. Help each organization prioritize where to invest and

disclose their human capability efforts.

With the human capability framework tied to stakeholder

outcomes, leaders can make better choices about where to

focus their people and organization efforts. Often a company

invests in one of the 37 initiatives in figure 1 for several

different reasons: it is considered a best practice in an

admired company; it builds the organization’s reputation

(socially or by being politically correct); leaders believe in

the initiative (survey says “do this”); an advisor

recommends it; or it is easy to do. Success is then defined

by the initiatives being implemented on time and within

budget.

We would hope that leaders can use rigorous analytics to

determine which of the four pathways and 37 initiatives

deliver the most value to the seven stakeholders.

Prioritization is not just intuition but information.

Implications of Taxonomy, Stakeholder Value, and

Prioritization for Conversations

The implications of this framework, stakeholder, and priority

logic changes HR conversations.

In conferences for senior leaders, the human capability

topics chosen to talk about should be those that create the

most value for stakeholders. Using the four categories,

participants at these conferences get a balanced view of the

talent, leadership, and organization choices that they could

consider for their organization. They have a portfolio or menu

of choices that they choose from depending on the needs of

their specific stakeholders.

In my reviews of human capability agendas from one year to

the next, agendas should build on each other to cumulate

knowledge at the four-category level rather than focusing on

isolated experiences. Instead of repackaging ideas, they

could evolve based on new insights.

Often investments in any of the

four human capability pathways

have scorecards, dashboards,

benchmarks, and best practices

around accomplishing each

initiative. But measuring the

impact of initiatives on outcomes

that matter provides more

insightful information to an

organization.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64