FRONT-RUNNING: SEBI IS CATCHING UP! Directly Or Indirectly
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BSEBROKERS'FORUM(BBF),MUMBAI,INDIA OCTOBER2017|VOLUME:6•ISSUENO.7•`15/- FORUM VIEWS INSIDE IMPACTOFGSTONBROKERS ANDSUB-BROKERS FINANCIALREFORM: IMPERATIVESCONFRONTING THEGLOBALECONOMY SEBIBOOSTERTODEBT SECURITIESMARKETATIFSC THEEMERGINGNEW INDIANGOLDMARKET FEATURE OVERVIEWOFTHEMAHARASHTRA NOTIFIEDRULESUNDERRERA DIGITALINDIA:CHALLENGES ANDOPPORTUNITIESFORTHE FINANCIALSERVICESINDUSTRY LIFESTYLE&FITNESS FATE,FREEWILL&LAWOFKARMA BAGENCYCLOPAEDIA CHOLESTEROLFIGHTERS GARRYW.G. CLEMENT CFE,CAMS,CFCS EVP-EXECUTIVEDIRECTOR ASSOCIATIONOFCERTIFIED FINANCIALCRIMESPECIALISTS (ACFCS) ON FINANCIALCRIME:THENEW REALITYFORCOMPLIANCE 64 INALLFINANCALSECTORS 2 3 FORUM VIEWS - OCTOBER 2017 OCTOBER 2017OCTOBER CONTENTS 2017 CONTENTS CEO & CEOCOO & COO DESK DESK Members’ and Readers’, CEO & COO DESK COMPLIANCE CALENDAR OCTOBER 2017 Indian Economy Macro Factors Becoming Weak: The Indian Economy which was called as the “Fastest 05 31 Growing Economy” in the world is no longer able to remain in that slot since the economy has slowed down and the GDP has drastically reduced. FINANCIAL CRIME: THE NEW REALITY FOR REGULATORY The following are the macro economic factors have continuously become weak: COMPLIANCE IN ALL FINANCAL SECTORS 32 PULSE 06 Weaker GDP: The Indian GDP has come down to 5.7% as compared to 6.1% and the last year GDP during the same quarter was 7.9%. The 5.7% GDP is the lowest we have recorded in the last 3 years which clearly BULLS & BEARS: CIRCULARS shows that the economy is slowing down. The agriculture sector growth has reduced from 2.5% to 2.3%. 34 This is also critical as around 62% of the population still depends on agriculture for their livelihood either 10 FRONT-RUNNING: SEBI IS CATCHING UP! directly or indirectly. OVERVIEW OF THE MAHARASHTRA Negative IIP: The Index of the Industrial Production which tracks the demand in the manufacturing sector is KNOW YOUR GST: IMPACT OF GST 42 NOTIFIED RULES UNDER RERA also intoa negative territory. The last 3 IIP reading are 3.1% then it reduced to 1.7% and then the latest one 12 ON BROKERS AND SUB-BROKERS came at -0.9 %. This means that the industrial production in the country is shrinking and there is no demand picking up in the economy. DIGITAL INDIA: CHALLENGES AND FINANCIAL REFORM: IMPERATIVES Dr. Vispi Rusi Bhathena Lower Interest Rates Not Helping: The interest rates in the economy are quite lower as the Housing Loans 44 OPPORTUNITIES FOR THE FINANCIAL are down at 8.35% and the fixed deposits rates are also lower to 6.25%. The Credit off take of the banks are 16 CONFRONTING THE GLOBAL ECONOMY SERVICES INDUSTRY Chief Executive Officer growing at very slow pace of 5%.Industrial financing has taken a beating as the rising NPA problems are stopping banks from fresh lending. ASSET ALLOCATION USING SEMINARS & EVENTS CONDUCTED BY BBF Higher Inflation: Both CPI and WPI are rising and because of floods in most parts of the country this 18 EXCHANGE TRADED FUNDS 48 FOR THE PROGRESS OF STAKEHOLDERS OF monsoon, the food crop production is likely to get affected and thus the agriculture production would go CAPITAL MARKETS: AUGUST - SEPTEMBER 2017 down. This would cause rise in inflation and thus there would not room for RBI to reduce rates. But rather BBF successfully RBI would be under pressure to increase the rates which may further slowdown the economy. WILL THE RALLY IN BASE METALS PHILOSOPHY & SELF MANAGEMENT: conducted an Lower Capacity Utilization: The capacity utilization is at 69% which means that corporates are having 31% 20 CONTINUE OR FIZZLE OUT? of idle capacity and this shows that they are not in any hurry to expand or increase capacity. This would 52 FATE, FREE WILL & LAW OF KARMA interactive create negative impact on the economy. Thus economy would get slowdown further. INDIA PASSIVE STORY - demo/meeting with Job Less Growth: India needs to create 1.5 crore jobs every year for next 20 years and this is a real big 21 THE GOVERNMENT CATALYST IMAGE & STYLE: challenge for the society. As large number of graduates pass out but with fewer job opening, the need of the 54 BAG ENCYCLOPAEDIA GST officials on hour is to make more concentrated efforts to develop the Entrepreneurship zeal in the country. Entrepreneurship will create large number of jobs and thus there will be ripple effect. SEBI BOOSTER TO DEBT filing of GST FITNESS: At the Global level too, the scene seems not to be pleasant as the US and North Korea are still having 22 SECURITIES MARKET AT IFSC returns and a tension which keeps the market and world economy on tenterhooks. The rising geopolitical tension makes 56 BIKERS AWAY! the retail investors feel jittery. Yet the Indian stock markets are climbing upwards since the retail investors seminar on money is coming into the stock market through mutual funds route. In August 2017 it saw Rs. 21000 crore BLOCKCHAIN IN WELLNESS Q&A: Contemporary coming into the equity mutual funds which was highest ever flow into the equity funds. This has kept the 24 FINANCIAL SERVICES 58 CHOLESTEROL market rolling for the higher upper side. Compliance Issues At the BBF Front: THE EMERGING NEW YOUNG MINDS: SMALL SAVINGS with BSE Ltd. 26 INDIAN GOLD MARKET 59 LEAD TO WEALTH CREATION BBF - Representations: Date Subject To 4 Sep Stock brokers to provide real time and periodical profit & loss SEBI ASIA-PACIFIC MARKETS MONTHLY THE HEALING TEMPLE: statement including short term & long term capital gains to their clients 28 HIGHLIGHTS AND INSIGHTS 60WHAT ARE ANGEL CARDS? BBF - Seminars and Events Printed, Published and Edited by Dr. VISPI RUSI BHATHENA & Date Topic BSE Brokers’ Forum Steering Committee Dr. V. ADITYA SRINIVAS on behalf of BSE BROKERS' FORUM, 4 Sep Filing of GST return Uttam Bagri (Chairman) printed at KSHITIJ PRINTERS, 49, Parsi Panchayat Road, Interactive demo/meeting with GST officials Anurag Bansal (Vice - Chairman) Ashok Ind. Estate, 1st, Floor, Andheri (East) Mumbai - 400 069. 6 Sep BBF presents an Interactive seminar on Contemporary Compliance Issues Purav Fozdar (Secretary) and published from BSE BROKERS' FORUM, 808 A, - Implementation of Margin Trading norms - Enhanced Risk based Supervision Harin Mehta (Jt. Secretary) P. J. TOWERS, DALAL STREET, FORT, MUMBAI - 400 001. Editor: Dr. V. ADITYA SRINIVAS - Compulsory Aadhaar for old and new clients Kamlesh D Shroff (Treasurer) Design by: Harshad Gajera | Photographer: Sanjeev Dubey - Related matters Write to us: BBF - Investor Education and Awareness Initiatives Scan the Date Universities / Educational Institutions We would be happy to hear from you! Follow QR Code 07 Sep Adarsh College of Arts & Commerce Do send in your suggestions, feedback and comments via us on: to visit our 07 Sep Smt. B.M. 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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 BSE Brokers' Forum is prohibited. 4 FORUM VIEWS - OCTOBER 2017 5 FORUM VIEWS - OCTOBER 2017 FINANCIAL CRIME: THE NEW entrants with weak critical thinking skills, macro-economic broad failures in its financial crime compliance program, conditions, aging population with differing customer particularly how the operation identified and escalated REALITY FOR COMPLIANCE IN expectations and a continual growth in cyber-crime threats. suspicious activity in the riskiest areas of the market. ALL FINANCAL SECTORS Taking all of this into consideration serves to highlight what Finra found that Credit Suisse relied too heavily on registered senior management and Board of Directors face on a regular representatives to uncover and escalate instances of THE VALUE OF THE ASSOCIATION basis. suspicious activity in the securities markets overall and in OF CERTIFIED FINANCIAL CRIME microcap trading, a known high-risk area and examiner focal Unfortunately, one of the areas that still is often viewed as a point strewn