Forum Views - May 2023
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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
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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.
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