Tag: digitisation

“India should be on the front foot, the opportunity is yours for the taking,” says Citi’s Global CEO Jane Fraser

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Jane Fraser, the CEO of Citigroup, says that India is currently shining on the global stage and has a unique chance to stand out.

Speaking at the Citi Investor Conference 2024, she highlighted India’s opportunity to gain from changes in global supply chains, especially moving away from China, and how factors are aligning to attract global investors to India.

“India should be on the front foot. This is India’s moment, it is not just the demographic dividend, it’s not just a digital dividend. It’s green opportunity, it has an incredible talent base that is here, and an opportunity that I think the world is playing in to India’s favour right now and it’s yours for the taking,” Fraser said.

She emphasised India as a key beneficiary in the shift of global supply chains, noting its competitive edge due to its large scale, cost-effectiveness, and quality.

Fraser also mentioned India’s unique strengths, such as its growing ease of doing business, rapid digital transformation, and potential in green technology, which together offer a promising landscape for both local and international investors.

Read Here | Investors are optimistic but exercising caution due to recent outperformance of market: Citi

“There aren’t many countries which have the scale of India. And so when you’re looking around, where you want to invest as a foreign investor this has big advantages here. Whilst it’s in a challenging neighbourhood, India’s got the ability to connect into the Middle East, where we are seeing tremendous financial flow vitality, and dynamism and also a fascinating societal changes that are happening there. That will be another beneficiary of a new and important partnership for India.”

Also Read | Citi India sees bond yields declining to 6.5% if RBI signals rate cuts

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI deputy governor says the ‘sweet spot’ lies in fintechs being competitors and collaborators

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Addressing the Global Fintech Fest 2023, RBI Deputy Governor T. Rabi Sankar on Tuesday (September 5) emphasised the evolving landscape of financial innovation, highlighting the symbiotic relationship between fintech firms and traditional financial institutions.

Sankar began by acknowledging the foundational infrastructure that has been established in the public sector for the payments system, with the private sector enjoying significant freedom to innovate. He stressed that innovation in finance is not a recent development, citing the unique anonymous price discovery system in the government securities market as one of the sector’s early innovations.

However, he noted that what sets current innovations apart is their speed and scope, without fundamentally altering the financial ecosystem’s core functions.

Also Read: RBI aims to target 1 million retail transactions a day by December 2023 via digital rupee

Digitisation of information, direct interactions between buyers and sellers, and expanded accessibility have all led to faster transactions and increased financial inclusion, he said.

Fintech entities can excel in functions where they hold a competitive advantage, he pointed out. The “sweet spot,” according to Sankar, lies in fintech firms simultaneously acting as competitors and collaborators.

Collaboration is crucial for fintech innovations to smoothly integrate into the financial system, and the balance between competition and cooperation will ultimately be determined by market dynamics, he asserted.

Sankar also highlighted the RBI’s active involvement in the technological transformation of the financial ecosystem. He mentioned the recent announcement of a public platform for frictionless credit delivery by the RBI’s innovation hub. The RBI, as a regulator, plays a vital role in maintaining the stability of the evolving financial system.

Also Read: Exclusive | Kotak Mahindra Bank has sent two names for MD and CEO role to RBI: Uday Kotak

However, Sankar acknowledged that the agility of new-age fintech firms can challenge existing regulatory models. With fintechs amassing sensitive data, the importance of data privacy and security cannot be overstated, and Sankar suggested self-regulation as a way forward for fintech companies.

In this context, he proposed that self-regulatory organisations (SROs) could play a pivotal role in the fintech industry as regulators continue to develop regulations.

Sankar emphasised that fintech firms should maintain a spirit of collaboration and innovation, recognising that they are best positioned to understand the intricacies of the evolving system.

In conclusion, he stressed the potential for fintechs, traditional banks, the RBI, and SROs to work harmoniously to drive progress for all stakeholders in the rapidly evolving financial landscape.

Also Read: RBI looking to scale up scope of public tech platform and Kisan credit card

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SEBI asks transfer agents to digitise investor requests, complaints system

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a move that can be helpful to holders of physical security certificates, SEBI has decided to provide a mechanism for processing of investors’ service requests and complaints through online mode by Registered Transfer Agents (RTAs). The market regulator has asked RTAs to process online service requests and complaints of investors. The regulator has also asked RTAs to track the status as well as obtain periodical updates. In its recent circular, SEBI proposes to digitise the process in two phases.

It’s important to note that currently, individuals who hold physical security certificates need to submit various documents to RTAs for service requests or complaints. The physical documentation is required for everything including changes in personal details and dematerialisation and re-materialisation. The market regulator is now looking to digitise the process in two phases.

The securities market watchdog has said that the new digital mechanism would provide benefits such as a database for service requests and complaints, online acknowledgement and intimation to the investor and online tracking of status of service requests and complaints by investors. According to SEBI, the first phase will require all RTAs servicing listed companies to have a functional website. Such website should mandatorily display the following information:

1. Basic details of the RTA such as registration number, registered address of Head Office and branches.

2. Names and contact details such as email ids etc. Of key managerial personnel (KMPs) including compliance officer.

3. Step-by-step procedu res for various service requests, Frequently Asked Questions (FAQs), procedure for filing a complaint and finding out the status of the complaint, etc.

SEBI has also asked RTAs to set up a user-friendly online mechanism or portal for service requests and complaints. Features like easy registration format through the generation of OTP, complaint-registration and tracking feature, complaint or service-request-categories for the investors to choose from and list of documents needed to go with the complaints are mandatory options to be available on the website.

The circular also noted that, “It may be noted that wherever investor service requests require submission of physical documents, those requests shall be considered and taken up for processing by RTA only after receipt of physical documents. Online requests will be kept pending for receipt of physical documents for 30 days. Requests pending beyond 30 days awaiting receipt of physical documents will be closed with communication about non-receipt. In such case, the investor will have to raise a fresh request.”

According to the circular, qualified RTA or QRTAs should have the first phase ready from January 1, 2024 and RTAs should have it in place by June 1, 2024.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Digitisation and manufacturing now driving emerging markets including India: Morgan Stanley

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India has always been a service-led economy but of late the manufacturing sector has started shifting gears. Jitania Kandhari, Head of Macro Research for Emerging Markets at Morgan Stanley in an interview with CNBC-TV18  said that digitisation and manufacturing are driving emerging markets (EMs), including India, forward.

“The four structural drivers are reform momentum, the commodity cycle, digitisation, which is a big growth driver in many emerging markets, and manufacturing, because of the supply chain diversion is happening in the geopolitical world with China in focus,” she said.

“I’m really very positive on India at a relative level. India has never been a manufacturing story. It missed the manufacturing bus… This time, I am beginning to see some signs of a manufacturing pickup with the supply chain diversion. I’m hoping that the long-awaited manufacturing pickup will happen,” she said.

Also Read: Retail inflation for farm workers rises to 6.6%, says Labour Ministry

According to a Morgan Stanley report, for the first time inflation levels in EMs are far lower than that in developed markets like the US and Europe. This means emerging market central banks don’t have to hike rates as much as developed markets.

Kandhari believes inflation in EMs is not a demand-led structural problem. “Wages are not an issue for inflation. The supply-related issues which have the food, energy prices or the supply disruption, that has caused inflation to peak in some of these markets,” she said.

Also Read: Centre revises windfall tax for third time, cuts tax on domestic crude oil

Can India demand a greater share of the MSCI EM index as this index morphs?

“I don’t know if it will go to 30 percent but I am sure the trend is up. There are risks. So we are very conscious. It is a very expensive market, but the valuations have gone up with earnings going up and return on equity going up. Now, if that were to change for any reason, there will be a derating. So this is not going to be a straight line up like everything else, we will be up and down but I think the structural trend is up,” she explained.

For the full interview, watch the accompanying video

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Rakesh Jhunjhunwala says India should be grateful to Mukesh Ambani for digitisation in the country

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Market veteran Rakesh Jhunjhunwala, in an exclusive interview with CNBC-TV18, said that India should be grateful to Reliance Chairman Mukesh Ambani for revolutionising the telecommunication sector and fast-tracking the digitisation process in the country.

Jhunjhunwala said the low cost offered by Reliance Jio, whether in voice or in data, is what has caused digitisation in the country.

“I must thank Mr Mukesh Ambani for the change he has brought about in India because the low cost of communication whether in voice or in data is what has caused digitisation in this country”, he said.

Also Read: Mukesh Ambani draws nil salary for second year in row

The market veteran believes that the digitisation theme will continue to play out further as time progresses. However, he is not bullish on the telecom sector.

He said, “I don’t think the telecom sector is a very good sector to invest, in because it constantly requires investment. So therefore there are no true cash flows, there is no true cash generation,” he reasoned.

Also Read: 5G mobile services likely to be rolled out in about a month, says MoS Telecom

As Akasa Air takes to the skies, promoter Rakesh Jhunjhunwala today said that the airline would be competitive, and would adhere to the principle of staying frugal in its operations.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nirmala Sitharaman expresses need for regulators to be ‘ahead of curve’ to deal with digitisation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Union Finance Minister Nirmala Sitharaman said regulators should be well “ahead of the curve” in understanding digitisation to ensure that there is no misuse of technologies.

She said the Competition Commission of India (CCI) and National Financial Reporting Authority (NFRA) should head off conflict to ensure fair and accountable practices, news agency PTI reported.

“We all have to be ahead of the curve to see where the regulation has to fall in place, where the regulations have to have a softer touch, where the regulations have to be deterrent strong enough…We need to have agencies ready to be able to gauge what that is to do to (have) fair, accountable and transparent practices,” Sitharaman said on Tuesday.

“The impact of this digitisation certainly has an impact on markets and if does have an impact on the markets, it obviously [affects] the competition commission, financial reporting authority,” she said.

“First time in the last 75 years, retail investors have started coming into the market in a big way. IEPF (Investor Education and Protection Fund) has organised 62,000 outreach programmes and the contribution of retail investors is because of these programs,” she said.

“If FPI (Foreign portfolio investment) went away, our markets did not really have to show their ups and downs in a very distinct way because small investors in the country have come in a big way,” Sitharaman said.

She was speaking at the event to flag off Iconic Day celebrations of the corporate affairs ministry as part of the Azmadi ka Amrit Mahotsav (AKAM). In her speech, Sitharaman also mentioned how India is leading in digitisation.

ALSO READ | SBI Card partners with TCS for digital transformation

“The decade of 2020 up to 2030 or further is so distinctly defused with digital methods. No wonder, therefore, the Budget of 2022-23 had so many announcements of digital — whether it is digital currencies, digital universities, digital banking, and looking at ways we can further strengthen digital payments,” she said.

Sitharaman lauded the Ministry of Corporate Affairs for taking steps to boost digital technology. “The Ministry Of Corporate Affairs (MCA) took initiatives using digital technology and many more such steps need to come from MCA. The MCA needs to have an out of box approach,” she said.

“The MCA is uniquely placed as it is facilitating people while regulating. It has impacted the lives of common Indians, be in their small businesses or part of larger business or even small investors,” she said.

Sitharaman, who is in charge of the finance and corporate affairs ministries, also emphasised the need to have firewall mechanisms in the context of digitisation.

At the event, the National CSR Exchange Portal was launched. Among others, a commemorative postal stamp on investor awareness was released and a special window for those 75 years and above with respect to claims was launched by IEPFA (Investor Education and Protection Fund Authority).

ALSO READ | India witnessing increasing digitisation, shift in consumers’ financial behaviour: NITI Aayog’s Rajiv Kumar

With inputs from PTI

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SBI Card partners with TCS for digital transformation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

TCS on Monday said it has signed a deal with SBI Card that will help digitalise and transform online onboarding processes of the latter’s customers and will further enable the client to expand its e-card issuance.

It, however, did not disclose value of the deal.

TCS has been serving the largest pure play credit card issuer in the country for a decade and the new deal is an expansion of the engagement, the IT company said in a statement.

“TCS as a strategic partner has played an important role in this digital journey for us, especially in digitising our core cards sourcing platform, implementation of video KYC and eSignature features during COVID-19 period,” Rama Mohan Rao Amara, managing director and chief executive of SBI Card said.

TCS’ business head for the banking, financial services and insurance segment, Anupam Singhal, said The IT major has a deep contextual and domain knowledge, customer-centric strategies, and expertise in driving transformation programmes which will help SBI Card.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mutual funds add over 3 cr folios in FY22 on sharp rally in equity market, digitisation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Increasing awareness about mutual funds, ease of transactions through digitisation and sharp surge in equity markets have aided asset management companies to add a staggering 3.17 crore investor accounts in 2021-22, with experts saying the trend is likely to continue this fiscal as well. This was a significant rise from 2020-21 when 81 lakh accounts (or folios in mutual fund parlance) were opened, data with the Association of Mutual Funds in India (Amfi) showed.

The ongoing financial year too appears to be promising in terms of folios as increase in investor accounts will enable people to move beyond fixed deposits and savings accounts, said Priti Rathi Gupta, founder of LXME, a financial platform for women. Market conditions, geopolitical situations, inflation rates, financialisation of investments and increasing awareness among the people are some of the elements that may have an impact on this industry, she added.

If the retail investors get spooked by the market turbulence driven by change in interest rates, then folios are expected to decline, said Swapnil Bhaskar, Head of Strategy, Niyo — a millennial-focused neo-banking fintech. According to the data, the number of folios with 43 fund houses rose to 12.95 crore in March 2022 from 9.78 crore in March 2021, registering a gain of 3.17 crore during the one-year period.

Also read: Mutual Fund corner: Investing in multi-asset funds; experts weigh in on pros and cons

The industry crossed a milestone of 10 crore folios in May 2021. The number of folios under equity, hybrid and solution oriented schemes, wherein the maximum investment is from retail segment, stood at about 10.34 crore as of March 2022.

Folios are numbers designated to individual investor accounts. An investor can have multiple folios. The mutual fund space has been witnessing consistent growth in folio numbers in the past few years. It saw an addition of 73 lakh investor accounts in 2019-20, 1.13 crore in 2018-19, 1.6 crore in 2017-18, over 67 lakh in 2016-17 and 59 lakh in 2015-16. Some tailwinds that are supporting the industry include increasing mutual fund (MF) awareness, strong distribution platforms and ease of transactions through digitisation, which was further driven by the COVID-19 pandemic.

According to LXME’s Gupta, multiple factors have enabled the growth in MF folios, like an increase in digitisation, availability of easy-to-consume information, increased awareness, and a mindset shift from traditional instruments to mutual funds as the investors are expecting good returns based on past market outperformance despite the ongoing pandemic. ”Amfi’s ongoing ’Mutual Fund Sahi hai’ campaign and other investor awareness initiatives undertaken by Asset Management Companies (AMCs) have been instrumental in connecting the industry with wider masses to emphasise on the importance of investing in MFs,” said Saugata Chatterjee, Chief Business Officer, Nippon India Mutual Fund.

Also, with AMCs deepening their branch network, and increase in distribution touchpoints across length and breadth of the country, the industry has been able to bring in new investors, he noted. Jimmy Patel, MD and CEO, Quantum AMC, said as interest rates have been moderating, investors are looking at options beyond traditional avenues. Further, increased awareness about mutual funds has helped in boosting participation by retail investors.

Also read: Mutual Fund Corner: All you need to know about holistic financial planning

He further said volatility in the market and chaos across the globe have not prevented Indian investors from pouring funds into the market through the mutual fund route. This shows the investors’ trust and confidence in the Indian growth story. Of the 3.16 crore addition, 1.95 crore folios were added in equity-oriented schemes. Investors’ accounts in equity-oriented schemes (open and close ended) rose to 8.63 crore in March 2022 from 6.68 crore in March 2021.

While returns from other asset classes have not been that impressive, equity, with its noteworthy performance, turned out to be the obvious choice for investors, said Himanshu Srivastava, Associate Director Manager Research, Morningstar India. Since mutual funds are the most convenient and the best way to invest in equities, more and more investors are investing in it, he pointed out.

Given a low interest rate environment, equity markets have seen strong participation from retail investors who were looking for higher returns. As a result, the mutual fund industry has seen a surge in equity folio count, Nippon India Mutual Fund’s Chatterjee said. Additionally, many MF investors are diversifying their portfolios to get exposure to other index and international funds, which in turn is also supporting the folio count growth, he added.

Despite the robust growth in folio count over the past few years, MF penetration remains low, with less than 3 per cent of India’s population having MF exposure. Besides, debt-oriented schemes’ (open and close ended) folios count rose by 12.31 lakh to 88.4 lakh during the period under review. Within the debt category, liquid funds continued to top the chart in terms of number of folios at 22.29 lakh, followed by low duration funds (12.26 lakh), ultra short duration funds (7.99 lakh), corporate bond (7.13 lakh) and short duration funds (6.98 lakh).

In terms of top asset management companies, Nippon India MF has seen the maximum growth in investor folios in FY22. Its investor folios rose by 70.22 lakh to 1.7 crore as of March 2022. This was followed by Axis MF, which saw an addition of 47.81 lakh investor accounts to 1.28 crore, while folios of ICICI Prudential MF grew by 33.29 lakh to 1.47 crore. The average assets under management of the industry sharply rose to Rs 37.7 lakh crore as on March 31, 2022 from Rs 32.17 lakh crore in March 2021.

Also read: SEBI issues timelines for rebalancing portfolios of mutual fund schemes

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow