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BSE BROKERS' FORUM (BBF) | MUMBAI, INDIA DECEMBER 2018 | VOLUME: 7 • ISSUE NO. 9 • `15/-
FORUM VIEWS
INSIDE GLIMPSE OF:
BBF ANNUAL DIWALI DINNER & GET TOGETHER 2018
BSE LAKSHMI POOJAN & MUHURAT TRADING 2018
60
BBF PRESENCE AT THE ASIA SECURITIES FORUM (ASF)
23RD ANNUAL GENERAL MEETING 2018
DECEMBER 2018
DECEMBER CONT
2018 CONTENTS
05 CEO & COO DESK
42 REGULATORY
PULSE
06 BBF DIWALI DINNER &
ANNUAL GET-TOGETHER 2018 44 CIRCULARS
14 BBF PRESENCE AT ASF AGM 2018
BALI | INDONESIA
48 THE MATERNITY BENEFIT
ACT, 1961
25 BSE LAKSHMI POOJAN &
MUHURAT TRADING
50 POST SET-UP COMPLIANCES FOR AN
IFSC UNIT UNDER GOVERNING LAWS
28 THE ASIA-PACIFIC CROSS-BORDER
CORPORATE BOND SECONDARY
MARKET 52 AMENDMENT TO THE LAW RELATING
TO DISHONOUR OF CHEQUES
30 THE NEW WORLD ORDER: WILL
IT BE LIBERAL OR ILLIBERAL
53 IT’S A CRUDE
REALITY
32 LOW STYLE CONSISTENCY IN
LARGE-CAP AND MID-/SMALL-CAP
FUND CATEGORIES 54 PHILOSOPHY & SELF MANAGEMENT:
RENOUNCE TO REJOICE
34 SOFTWARE AS A
SERVICE (SAAS) 55 WELLNESS Q&A:
EXERCISE GUIDELINES
36 ASIA-PACIFIC MARKETS
MONTHLY HIGHLIGHTS
AND INSIGHTS 56 HEALING INSTITUTE:
YOGA AND MENTAL HEALTH
41 COMPLIANCE CALENDAR
DECEMBER 2018 58 ENERGY COSMOS:
LAMA-FERA
BSE Brokers’ Forum Steering Committee Printed, Published and Edited by Dr. Vispi Rusi Bhathena, PhD (h.c.)
Uttam Bagri (Chairman) & Dr. V. ADITYA SRINIVAS on behalf of BSE BROKERS' FORUM,
printed at KSHITIJ PRINTERS, 49, Parsi Panchayat Road,
Anurag Bansal (Vice - Chairman)
Ashok Ind. Estate, 1st, Floor, Andheri (East) Mumbai - 400 069.
Purav Fozdar (Secretary) and published from BSE BROKERS' FORUM, 808 A,
Harin Mehta (Jt. Secretary) P. J. TOWERS, DALAL STREET, FORT, MUMBAI - 400 001.
Kamlesh D Shroff (Treasurer) Editor: Dr. V. ADITYA SRINIVAS
Lalit Mundra (Jt. Treasurer) Design by: Harshad Gajera | Photographer: Sanjeev Dubey
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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
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2 3 FORUM VIEWS - DECEMBER 2018
ceo & coo message
FORUM VIEWS - DECEMBER 2018
On the BBF Front:
GET-TO2018
BBF - Seminars & Events:
Date Topic
23-Oct NSEL Town Hall
Dr. Vispi Rusi
Bhathena,
GET-TOGETHER
BBF - Investor Education and Awareness Programs:
PhD (h.c.)
Welcome
Date Institutions
5-Oct Institute of Finance and International
Management (Batch 1-2)
BBF Governing Board Members (2018-19) & Dignitaries
5-Oct MIT - World Peace University
5-Oct Universal College of Engineering
10-Oct Atharva Institute of Management Studies
ANNUAL
to Forum Views magazine. 10-Oct PU Education Services
11-Oct Atharva Institute of Management Studies
Indian Economy Facing Global Headwinds: Indian 11-Oct Bhimrao T. Pradhan College Shahapur
Stock markets and economy have been facing many (Batch 1-2)
(On Friday, 26 October, At Jade Gardens, Mumbai)
challenges due to the global reasons which have added to the 11-Oct N. G. Acharya & D. K. Marathe College of Arts,
volatility and uncertainty in the stock markets. Science and Commerce
International Monetary Fund (IMF) has still maintained its 12-Oct Wilson College (Batch 1-2)
12-Oct Smt. Maniben M.P. Shah Women's College of
DINNER &&ANNUAL
stand that the Indian economy will grow at 7.3% in 2018 and
7.4% in 2019. The world economy is likely to face some Arts & Commerce
slowdown with the on going trade war fears between US and 15-Oct VIVA Institute of Management and Research
China which would have effect on the world GDP. The rising (Batch 1-2)
interest rates globally would also lead to liquidity tightening 15-Oct Smt. Maniben M.P. Shah Women's College of
Arts & Commerce
and thus would affect the flow of capital. The Fed has
15-Oct PU Education Services
already increased its interest rates in 2018 and at the
16-Oct VIVA Institute of Management & Research
domestic level the RBI has also increased its interest rates 16-Oct Atharva Institute of Management Studies
twice. The Foreign Institutional Investors have been net 16-Oct S. P. N. Doshi Women's College
sellers to the tune of Rs. 41500 crores from January 2018 till 17-Oct Smt. Maniben M.P. Shah Women's College of
date while the Indian Mutual Funds have been net buyers to
DINNER
Arts & Commerce
the tune of Rs. 1,12,000 crores; October 2018 saw Rs. 7900 17-Oct Atharva Institute of Management Studies
crores coming through Systematic Investment Plan into the 17-19 Oct PU Education Services
market - this is very positive trend since now the Indian 23-Oct S. P. N. Doshi Women's College (Batch 1-4)
markets are being run by the domestic money which the 24-Oct H. R. College of Commerce and Economics
retail investors are putting into the market. The key macro (Batch 1-6)
variables for Indian economy are facing pressure. 25-Oct Pragati College Of Arts & Commerce
25-Oct GNVS Institute of Management
BBF DIWALI
CPI Data: The CPI is at 3.31% which was earlier at 3.77% 26-Oct PU Education Services
which is well within the comfort zone of RBI and thus this 29-30 Oct Pragati College Of Arts & Commerce (Batch 1-2)
would give some room to RBI to pause for interest rate
hikes. CPI is at 13 months low which gives enough reason to
RBI not to raise the interest rates.
BBF DIWALI
IIP data: The Index of Industrial
production is at 4.5% which was at
4.3% last month. There has been a
continuous decline in the IIP
reading from 7% to 6.6% and then
to 4.3%. This shows that the
industry is slowing down. The
rising interest rates and the credit
squeeze in the economy may put
Dr. Aditya Srinivas more pressure on the MSME
Rangooli,
segment which contributes around 40% in India’s exports
By Team BBF
and 45% in total production.
Our gratitude and thankfulness to all
our members and well-wishers for
being a part of this growing Forum
and we wish you all prosperity for the
coming new year 2019.
4
5 FORUM VIEWS - DECEMBER 2018
BBF DIWALI DINNER
BBF DIWALI DINNER &
& A NNUAL
ANNUALGET-TOGETHER
GET-TOGETHER 2018 2018
Official Mascot Launch
6 FORUM VIEWS - DECEMBER 2018 7 FORUM VIEWS - DECEMBER 2018
BBF DIWALI DINNER
BBF DIWALI DINNER &
& A NNUAL
ANNUALGET-TOGETHER
GET-TOGETHER 2018 2018
Uttam Bagri welcoming the gathering Mrugank Paranjape addressing
Vikram Limaye addressing Ashishkumar Chauhan addressing
8 FORUM VIEWS - DECEMBER 2018 9 FORUM VIEWS - DECEMBER 2018
BBF DIWALI DINNER
BBF DIWALI DINNER &
& A NNUAL
ANNUALGET-TOGETHER
GET-TOGETHER 2018 2018
10 FORUM VIEWS - DECEMBER 2018 11 FORUM VIEWS - DECEMBER 2018
BBF DIWALI DINNER
BBF DIWALI DINNER &
& A NNUAL
ANNUALGET-TOGETHER
GET-TOGETHER 2018 2018
We gratefully acknowledge and thank our generous sponsors
* Logos placed in alphabetical order
12 FORUM VIEWS - DECEMBER 2018 13 FORUM VIEWS - DECEMBER 2018
BBF PRESENCE
BBF PRESENCEAT ASFAGM
AT ASF AGM
2018 BALI | INDONESIA
BALI | INDONESIA
16:15-17:30 Panel Discussion 1:
Fintech Opportunities and Challenges for Securities Companies
.....
Moderator: Mr. Mushtaq Kapasi
(Chief Representative, Asia-Pacific, International Capital Market Association)
.....
Panellists:
ASIA SECURITIES FORUM (ASF) Ms. Youci Meng
(Vice Chairman, Securities Association of China (SAC))
ANNUAL GENERAL MEETING (AGM) 2018 .....
Ms. Mei Ling Kuo (Lynn Kuo)
(Convenor of FinTech Task Force Chinese Taiwan Securities Association)
Sofitel, Bali (Nusa Dua) | 31 October - 3 November 2018 .....
Mr. Tran Hai Ha
(General Director of MB Securities Joint Stock Company (MBS)
Intermediary Role of Securities Companies: A Review in Relation to Fintech and the Way Forward Vietnam Association of Securities Business)
Time Activity Venue .....
Wednesday, 31 October Mr. Luke Lim
(Managing Directior, Phillip Securities, Deputy Chairman, Securities Association
10:00-14:00 Pre-Conference Tour Garuda Wisnu Kencana
of Singapore)
14:00-15:00 ASF Pre-Meeting Gamelan A
Dress Code: Business
15:00-16:30 IFIE Asia Chapter Mid-Year Meeting Gamelan A
17:30-19:00 Cocktail Reception Retreat Garden
18:00-21:30 Gala Dinner Rumah Bali
Welcome Remarks:
Welcome Remarks: Mr. Hari B. Mantoro (Chair, ASF Committee)
Ms. Triny Talesu (Chairwoman, Asosiasi Perusahaan Efek Indonesia)
19:00-21:00 Devdan Show Bali Nusa Dua Theatre
Dress Code: Smart Casual with White Shirt/Top
Dress Code: Smart Casual
Time Activity Venue
Time Activity Venue Friday, 2 November
Thursday, 1 November
08:30-09:30 Panel Discussion 2 -
08:00-08:30 Registration Gamelan Regulatory Framework for Fintech and Investor Protection
08:30-09:30 Opening Remarks and Keynote Speech
Moderator: Mr. Nguyen Hieu
Opening Remarks: Mr. Karman Pamurahardjo (General Director of Viet Dragon Securities Corporation Vietnam Association of
(Chairman, Asosiasi Perusahaan Efek Indonesia) Securities Business)
Keynote Speech: Mr. Hoesen Panellists:
(Executive Chairman of Capital Market Otoritas Jasa Keuangan) Mr. Sujanto
09:30-09:45 Photo Session (formal) Retreat Garden (Investment Management Director Otoritas Jasa Keuangan)
09:45-10:00 Coffee Break Foyer, Gamelan
10:00-12:00 Market Report Mr. Robert Colquhoun
(ASIFMA, ICMA, AFMA, SAC, CTSA, HKSA, ANMI, BBF, APEI, ISEBA) (Company Secretary, Financial Controller and Director, Policy Australian Financial
Markets Association)
12:00-13:30 Lunch Break and Photo Session (informal) Pantai Samuh
13:30-15:00 Market Report
Ms. Kathryn Edmundson
(JSDA, KOFIA, ASCM, MASD, NZFMA, PASBDI, SRO, NFA, SAS) (Executive Director, International Forum for Investor Education)
15:00-15:15 Coffee Break
15:15-16:15 Market Report Mr. Uttam Bagri
(ASCO, ThaiBMA, TCMA, VASB, VBMA) (Chairman, Bombay Stock Exchange Brokers’ Forum)
14 FORUM VIEWS - DECEMBER 2018 15 FORUM VIEWS - DECEMBER 2018
BBF PRESENCE
BBF PRESENCEAT ASFAGM
AT ASF AGM
2018 BALI | INDONESIA
BALI | INDONESIA
09:30-10:20 Panel Discussion 3 - The Unintended Consequences of Global Regulation - ASF Member Organizations
MIFID, GDPR, EU BMR
...
Asia Securities Industry & Financial Markets Association (ASIFMA)
Moderator: Mr. David Lynch
(CEO, Australian Financial Markets Association) Association of Indonesian Securities Companies (APEI)
...
Panellists:
Mr. Paul Atmore CEO Association of National Exchanges Members of India (ANMI)
(New Zealand Financial Markets Association)
... Association of Stockbroking Companies Malaysia (ASCM)
Mr. David Lynch CEO
(Australian Financial Markets Association)
...
Association of Thai Securities Companies (ASCO)
Mr. Yong Won Kwon Chairman
(Korea Financial Investment Association)
Australian Financial Markets Association (AFMA)
10:20-10:35 Coffee Break Bombay Stock Exchange Brokers' Forum (BBF)
10-35-11:30 Panel Discussion 4 - Capital Market Commitment to SDGs
...
Moderator: Mr. Yusuke Kawamura Chinese Taiwan Securities Association (CTSA)
(Member of Self-regulation Board, JSDA, Deputy Chairman of the Institute,
Daiwa Institute of Research, Ltd.)
Hong Kong Securities Association (HKSA)
...
Panellists: International Capital Market Association (ICMA), Asia Pacific Representative Office
Mr. Mushtaq Kapasi
(Chief Representative, Asia-Pacific International Capital Market Association) Iran Securities & Exchange Brokers Association (ISEBA)
...
Ms. Lise Pretorius Japan Securities Dealers Association (JSDA)
(Sustainable Finance Engagement Manager Word Wide Fund for Nature)
...
Mr. Y.W. Junardy President Korea Financial Investment Association (KOFIA)
(Indonesia Global Compact Network)
11:30-12:00 Bali Declaration on Commitment to SDGs
Mongolian Association of Securities Dealers (MASD)
...
Speech by JSDA: Mr. Shigeharu Suzuki National Finance Association (NFA)
(Chairman and CEO, Japan Securities Dealers Association)
...
Introduction by ASF 2019 Host (TCMA): Mr. Ilkay Arikan
New Zealand Financial Markets Association Inc. (NZFMA)
(Secretary General, Turkish Capital Markets Association)
... Philippine Association of Securities Brokers & Dealers, Inc. (PASBDI)
Closing Remarks by ASF 2018 Host (APEI): Mr. Octavianus Budiyanto
(Chairman, Asosiasi Perusahaan Efek Indonesia) Securities Association of China (SAC)
Dress Code: Business
Securities Association of Singapore (SAS)
12:00-14:00 Lunch Break and Friday Prayer Foyer, Gamelan
14:00-16:00 SDGs Activities (details to follow) The Thai Bond Market Association (ThaiBMA)
17:00-21:00 Sunset and Dinner Jimbaran
Dress Code: Smart Casual
Turkish Capital Markets Association (TCMA)
Saturday, 3 November
Vietnam Association of Securities Business (VASB)
Post-Conference Activities Vietnam Bond Market Association (VBMA)
06:00-14:00 Golf New Kuta Golf
07:00-18:00 Cultural Tour Ubud
Dress Code: Casual
* ordered alphabetically by organization name
16 FORUM VIEWS - DECEMBER 2018 17 FORUM VIEWS - DECEMBER 2018
BBF PRESENCE
BBF PRESENCEAT ASFAGM
AT ASF AGM
2018 BALI | INDONESIA
BALI | INDONESIA
ASIA SECURITIES FORUM (ASF)
ANNUAL GENERAL MEETING (AGM) 2018
Sofitel, Bali (Nusa Dua) | 31 October - 3 November 2018
Intermediary Role of Securities Companies: A Review in Relation to Fintech and the Way Forward
Wednesday, 31 October
Glimpse of ASF Pre-Meeting, IFIE Asia Chapter Mid-Year Meeting & Cocktail Reception
Koichi Ishikura (Director & Chief
Anurag Bansal (Vice-Chairman, BBF) Uttam Bagri (Chairman, BBF) Officer International Affairs and
addressing addressing Research, JSDA)addressing
Dr. Vispi Rusi Bhathena, PhD (h.c.) Dr. Aditya Srinivas (COO &
Keiko Nakada (JSDA) addressing (CEO, BBF) addressing Chief Economist) addressing
18 FORUM VIEWS - DECEMBER 2018 19 FORUM VIEWS - DECEMBER 2018BBF PRESENCE
BBF PRESENCEAT ASFAGM
AT ASF AGM
2018 BALI | INDONESIA
BALI | INDONESIA
Thursday, 01 November
Glimpse of Opening Remarks, Keynote Speech, Market Reports, Panel Discussion 1:
Fintech Opportunities and Challenges for Securities Companies and Gala Dinner
Dr. Aditya Srinivas presenting
the BBF - India Market Report
20 FORUM VIEWS - DECEMBER 2018 21 FORUM VIEWS - DECEMBER 2018BBF PRESENCE
BBF PRESENCEAT ASFAGM
AT ASF AGM
2018 BALI | INDONESIA
BALI | INDONESIA
Friday, 02 November
Glimpse of Panel Discussion 2: Regulatory Framework for Fintech and Investor Protection,
Panel Discussion 3: The Unintended Consequences of Global Regulation - MIFID, GDPR, EU BMR,
Panel Discussion 4 : Capital Market Commitment to SDGs and Bali Declaration on Commitment
to SDGs, Bali Declaration on Commitment to SDGs, Introduction by ASF 2019 Host (TCMA)
and Closing Remarks by ASF 2018 Host (APEI)
22 FORUM VIEWS - DECEMBER 2018 23 FORUM VIEWS - DECEMBER 2018BSE LAKSHMI POOJAN & MUHURAT
ANURAG BANSAL (VICE-CHA
ANURAG BANSAL (VICE-CHAIRMAN, BOMBAY STOCK
EXCHANGE BROKERS' FORUM (BBF)) IN INTERACTION BSE - LAKSHMI POOJAN
TRADING - MEDIA COVERAGE
Team Indonesia
Economic Times
Business Standard
With Mushtaq Kapasi
With Kathryn (International Capital Market
Edmundson (IFIE) Association, Hong Kong)
Team Thailand Team Taiwan
Team Australia
Team Japan
Team Singapore, Russia
Team Thailand
Business Line
Janmabhumi
Team New Zealand, Korea Team Vietnam
24 FORUM VIEWS - DECEMBER 2018 25 FORUM VIEWS - DECEMBER 2018BSE - LAKSHMI
BSE LAKSHMI POOJAN
POOJAN AND MUHURAT AN D MUHURAT
TRADING TRADING
(WEDNESDAY, NOVEMBER (WEDNESDAY
7 2018) SAMVAT 2075 BEGINS!
Guests light the lamps during a special
muhurat trading session for Diwali
26 FORUM VIEWS - DECEMBER 2018 27 FORUM VIEWS - DECEMBER 2018GLOBALGLOBAL
INSIGHTS
INSIGHTS GLOBALGLOBAL
INSIGHTS
INSIGHTS
financial and non-financial corporates. In terms of demand, platforms, there is a cultural reticence among many to move
THE ASIA-PACIFIC China is also a key part of the story, with the offshore offices of
Chinese investment firms andsecurities firms, as well as
away from OTC trading. Relationships and personal trust are
deeply ingrained in Asian markets, and so full electronification
CROSS-BORDER Chinese private banks, providing most of the appetite for
Chinese US$ issuance.
of the market could take time. For the most part, platforms are
either used to identify axes or to process bilaterallyagreed
CORPORATE BOND Secondary market liquidity
trades. However, for some, the means of trading are irrelevant,
and the focus is more on digitalizing the order and trading
SECONDARY The interviews paint a mixed picture on secondary market process with a view to enhanced data capture.
MARKET liquidity, which appears to be a relative concept. Some
respondents feel that liquidity is generally good, while others The CNY onshore market
posit that the market is traditionally a buy-to-hold market, and The internationalisation of LCY markets in the APAC region is of
so inherently illiquid. However, it would seem that, to the extent key interest to interviewees, in particular the opening up of the
that liquidity is healthy, it is skewed heavily to investment grade CNY domestic corporate bond market. While there remain a
issuance, as well as to the bid side of the market, while the number of barriers to entry, in particular concerns around the
International Council of interviews and data suggest that secondary market activity has transparency of issuers’ balance sheets, the absence of reliable
Securities Associations lagged the overall growth in market size. In terms of liquidity credit ratings, and uncertainty around Chinese bankruptcy and
provision, again China is an important part of the story, with an tax law, the general view is that international inflows into the
influx of Chinese broker dealers filling the gap as some CNY bond markets are set to accelerate.3 The inclusion of China
international banks scale back their trading activity in international bond indices4 will only help to expedite these
flows.
Repo and credit default swap markets
ANDY HILL MUSHTAQ KAPASI Both credit repo and corporate single name credit default swap
(SN-CDS) markets remain under-developed, which seems to
Future outlook
Looking forward, many believe that China will remain the most
Senior Director Chief Representative, have a direct impact on the ability for dealers to provide
liquidity. Respondents feel that improvements in both financing
important part of the story, in terms of US$ issuance,
investment, and intermediation, as well as the ongoing
ICMA’s Market Practice and Asia-Pacific and hedging markets would help secondary market liquidity and internalization of its onshore CNY market. Other LCY markets
Regulatory Policy group International Capital
boost activity. Short-selling is particularly difficult, not least are also expected to become a more prominent part of the
since many regional investors have a low tolerance for cross-border corporate bond market. There are broad concerns
Market Association settlement fails. of a potential marked correction in the near future, with
participants citing unsustainable credit valuations, excess
I
n August 2018, ICMA published a report on The State and Regulatory impacts leverage, and the turning of the rate and credit cycle. However,
The Asia-Pacific G3 cross- Evolution of the Asia-Pacific Cross-Border Corporate Bond In terms of regulatory impacts, these are mostly imported from the longer-term outlook for the APAC cross-border corporate
US and European regulation. Basel III has put pressure on the bond markets would seem to be mostly positive, with plenty of
border corporate bond Secondary Market. The report is primarily focused on the
APAC cross-border corporate bond markets and largely balance sheets and trading books of international banks, as has opportunities for investors, intermediaries, and issuers.
market has grown confined to G3 (US$, EUR, GBP) denominated bonds of non- the Volcker Rule, while MiFID II/R is being “globalized” by a
number of European and international investment firms.
significantly over the past financial and financial corporate issuers, as defined by having
issuer country of risk within the APAC region. However, to the Perhaps more significantly, regional regulators appear to be Andy Hill is a Senior Director in ICMA’s Market Practice and Regulatory Policy
five-to-six years, and
group. He is a member of the European Commission’s Expert Group on Corporate
extent that regional local currency (LCY) markets are opening up watching the impacts of MiFID with a view to introducing their Bond Market Liquidity and also supports ICMA’s work related to repo market
own regulatory initiatives around transparency and best liquidity.
currently stands at almost to international investors and issuers, these are also discussed
in the report, in particular the Chinese onshore corporate bond execution. Prior to joining ICMA in 2014, Andy was a repo and money market trader for
US$2.5 trillion in nominal market. In compiling the report, ICMA adopted a similar
seventeen years, for ten years of which he was an Executive Director at Goldman
Sachs.
Market electronification
value, including financial approach to that of the previous European based studies,
combining both qualitative and quantitative research and The adoption of e-trading in the market seems to be a two-
Mushtaq Kapasi was appointed in 2013 to lead ICMA’s work in Asia Pacific and
to run its Asia Pacific Representative Office in Hong Kong. He has been based in
issuers, and just over analysis, utilising available market data2 as well as extensive speed process. While a number of banks and asset managers Hong Kong since 2002, engaged in senior strategy, capital market and legal roles
at international banks active in Asia.
are trying to move as much business as possible onto trading
US$900 billion in terms of interviews with a broad range of market stakeholders, including
sell side, buy side, and trading venues.
non-financial corporates.
Market size and growth
The BBF is a key member of ICSA, the global organization The Asia-Pacific G3 cross-border corporate bond market has
of nineteen securities industry associations. Founded in grown significantly over the past five-to-six years, and
1988, ICSA provides a forum for member associations to currently stands at almost US$2.5 trillion in nominal value,
understand developments, exchange views, and collaborate including financial issuers, and just over US$900 billion in terms
to work for better global capital markets. of non-financial corporates. In the same time, annual corporate
(www.icsa.global). issuance has more than trebled to over US$930 billion in 2017.
ICSA members have been invited to submit contributions to Issue sizes have also become larger, with more marquee issues
Forum Views. The following is from the International coming to market, and less reliance on 144A tranches. Much of
Capital Markets Association. the increase in issuance has been driven by Chinese onshore
28 FORUM VIEWS - DECEMBER 2018 29 FORUM VIEWS - DECEMBER 2018INSIGHTS - ECO
INSIGHTS - ECONBUZZ INSIGHTSINSIGHTS
- ECONBUZZ
- ECONBUZZ
international financial institutions. In decades ago. According to a recent incomes greater than $6,000 and less
THE NEW WORLD ORDER: WILL IT BE essence thus, the practice of working paper (October 2018) by than $30,000 has grown by hundreds of
LIBERAL OR ILLIBERAL liberalization became almost
disembodied form the prevalent ideology
Carnegie endowment for International
peace titled what comes next? Lessons
millions, and this number is set to rise
even further in the next 10 years. These
of liberalism that dominated discourse for the recovery of liberal democracy, trends imply an acceleration in demand
from the early nineties up to to 2008. "While U.S. political institutions are over potential that will affect the types of
By Professor Piya Mahtaney Notably those developing countries that 200 years old, much of today’s harm is products the BRICs import—the import
Economist / Author had in place by the early nineties at least rooted in the political problems of 1960s share of low value added goods is likely
an edifice for development or as some and 70s, when American democracy to fall and imports of high value added
would say a developmental state were became increasingly consolidated. The goods, such as cars, office equipment
Introductory exposition level-regional, national and international. other features that are symptomatic of a beneficiaries of liberalization such as United States thus faces the problems of and technology, will rise’’.
The previous article for Econ Buzz It is evident that the axis of power by world order that is less liberal are making East Asia, India and South East Asia. many new democracies but is equipped
discussed the shift in geopolitics, this which is meant those nations that a dramatic reappearance in the global with institutions that have few explicit In so far as globalization is concerned the
article continues the discussion with a wielded the maximum influence on economy it is the result of the Secondly the course that liberalization means of limiting executive power. imperative of sustainable development
specific emphasis on one of the most international affairs is shifting in favour of contradictions and faultlines that took and its biggest beneficiaries Norms are often stronger than laws. But confronts every nation as do the
fundamental questions of contemporary those nations that up to a decade or so underpinned the practice of liberalisation demonstrate that liberalisation was not once broken, normative damage is challenges that pursuing a path of
economics which is whether the new ago found themselves on the periphery of for over two decades since the early particularly tilted in favour of countries harder to address than legal violations, unsustainable production, distribution
world order would be a less liberal one global policy frameworks and decision nineties. It is beyond the scope of this that were democratic, notably China’s and norms are more difficult to restore...’’ and consumption have ushered in its
than what we have lived in so far. There making. In this context, the most obvious article to describe all the flaws in the way ascent spearheaded as it were by the wake. Sustainable development
are many perspectives from which this instance is China’s rather overt posturing economic liberalization was structured way it integrated trade liberalization and In the present scenario the contradictions reinforces globalization, take the
issue maybe deliberated upon but in this of its geopolitical significance. That said, but two major contradictions are as its authoritarian mode of governance is that undermined economic liberalization instance of climate change and its
article we will discuss it from the lens of in subtle ways emerging markets such follows: vividly reflective of this fact. A over the preceding two decades have damaging consequences, clearly the
geopolitics. as India, Indonesia, and South Africa and working paper (2015) by the Carnegie become more obvious and some would solutions to this as to other issues related
by a certain degree Mexico and Brazil are Firstly as liberalism as it has played out it endowment for International Peace titled say even blatant. This evokes the to sustainability have to be formulated
Amidst all the anti -globalization rhetoric moving from a peripheral to a more has not reduced the asymmetries in the new global market place of political imminent question which is whether one and implemented not in isolation but in
that has been spewed globally the fact assertive role in the global geopolitical decision making and neither has it change, ``The global wave of national- could categorically infer that the new unison.
remains that the recently concluded U.S space. Russia’s resonance in the global propelled policy formulation that were level political change that marked the world order that we are headed towards
mid- term elections has been tracked by economy is slightly different from the more reflective of the interests of 1980s and 1990s had a dominant initial a more illiberal. Not really because there In the next article for Econ Buzz I will
almost every newspaper and instance of the countries mentioned developing and less developed nations. directionality. Most of the countries are counterbalancing factors at work continue with the discussion about
broadcaster globally. The implications of because it was up to the early nineties at The history of WTO negotiations, the engulfed by this wave experienced which are opposed to protectionism and geopolitics.
these outcomes for democracy and which point the cold war ended a terms of trade weighted against the the breakdown of long- standing authoritarianism. Consider this:
interests of less developed commodity authoritarian regimes, whether they Inevitably the increasing participation of
liberalism continues to be a subject of contender for superpower status a fact
exporting nations tells us a chronicle of were military juntas in Latin America, an increasing number of developing and
discourse, that said the fact that this that came to an end with the collapse of
economic liberalization that began with Communist governments in the Soviet less developed nations in global trade and Piya Mahtaney completed her second Master’s in
political event elicited the attention that the Berlin Wall and the beginning of Development Economics from Leicester University
the promise of more competitive markets Union and Eastern Europe, or commerce which would have numerous
it did tells us that despite some sources liberalisation. in England she embarked on a career in journalism
and greater democratization. It did not personalistic dictators in Africa and Asia. implications for civil society, institutional with the Times of India. She was an assistant editor
of underlying fragility globalization here
deliver its slated objectives, instead Political observers at the time too easily reform and conservatively expressed in Metropolis on Saturday, subsequent to which she
to stay.
Economic and what was achieved fell far short of what assumed that movement away from these would be a counterpoint for joined as senior feature writer in Economic Times.
As an economist that reported, analyzed and wrote
it could have if the trade between
Juxtapose the contention of some that politics are developed countries and developing and
authoritarianism automatically meant
democratization when, in fact, many
protectionism and authoritarian
elements. According to a report by
on a wide range of socio-economic issues, writing a
book about economic development and the
globalization is receding with the spate of
new technological advances AI, inextricably linked less developed countries was freer and
the international financial system had
countries that the enthusiastic observers Goldman Sachs (2010) emerging trends of globalisation seemed almost
inevitable
proclaimed to be transitioning to
robotics, the internet of things among
others, which has been made possible
and this fact become more accommodative of the democracy were actually transitioning "The last decade saw the BRICs make
The books that she has authored are as follows:
• India China and Globalization (2nd ed), Palgrave
investment requirements and
because of connectivity and the plays out at every imperatives of the needs of the
into a political gray zone populated by
hybrid systems that combined
their mark on the global economic
landscape. Over the past 10 years they
Macmillan (England), December 2014
• Globalization and Sustainable Economic
incongruity becomes evidence.
Inevitably an increasing utilization of level-regional, countries that were not so advanced.
Consequently the outcome of this has
features of both democracy and have contributed over a third of world
Development, Palgrave Macmillan (U.S), August
1st 2013
authoritarianism.’’ Importantly the GDP growth and grown from one-sixth of • Institute of South East Asian Studies (Singapore)
digital advances would most certainly
increase the interconnectedness of the
national and been that the potentially numerous arbiter of liberalism the United States the world economy to almost a quarter published an edition (August 2010) of my book
India China and Globalisation.
advantages of economic liberalization
world economy. international. were partly impeded by largely overdue
finds that its institutions that were key to
upholding and strengthening the defining
(in PPP terms). Looking forward to the
coming decade, we expect this trend to
• The first edition of India China and Globalisation
was published by Palgrave Macmillan (England,
adjustments that changing geopolitical principle of its foundation democracy continue and become even more 2007)
Undeniably currently the world finds This brings us to the next part of this trends deemed necessary about two have had to grapple with factors that pronounced. In the coming decade, the
• Globalisation Con Game or Reality was published
by Alchemy Publishers, India (2004) 2004.
itself in a flux, but the basic point is that discussion which relates to the reasons decades ago. For instance that an have deviated from democratic more striking story will be the rise of the • The first book titled Economic Con Game,
what we see changing are the drivers of that can explain (at least partially) the increasing proportion of global GDP principles. This is not a recent feature but new BRICs middle class. In the last Development fact or Fiction was published by
globalization. apparent corrosion of some elements of Pelanduk Publications (Malaysia) in 2002.
wasbeing accounted for by developing one that has its antecedents about four decade alone, the number of people with
the liberal order that prevailed earlier. It is countries over the last two decades, a
Economic and politics are inextricably important to emphasize that that if feature that did not lead to a better
linked and this fact plays out at every protectionism, authoritarianism and representation of developing countries in
30 FORUM VIEWS - DECEMBER 2018 31 FORUM VIEWS - DECEMBER 2018INSIGHT
INSIGHTS
LOW STYLE CONSISTENCY IN HOW CAN YOU
LARGE-CAP AND MID-/SMALL-CAP BENEFIT FROM
FUND CATEGORIES
By Akash Jain
CLOUD BASED
Associate Director - Global Research & Design SURVEILLANCE?
S&P BSE Indices
S
tyle plays an important role in an investor’s asset allocation moved to the new large-and mid-cap, multi-cap, and focused fund
decisions. In the SPIVA India Mid-Year 2018 Scorecard, one categories.
can notice the low style consistency, especially in the Indian
Exhibit 2: Breakdown of Style Inconsistency in Funds
Equity Large-Cap and Indian Equity Mid-/Small-Cap categories. The
MORNINGSTAR INDIAN EQUITY INDIAN EQUITY
Securities and Exchange Board of India (SEBI)circular dated Oct. 6, CATEGORIES LARGE-CAP MID-/SMALL-CAP
2017, mandated the following important directives for the Mutual
Fund Industry. 1
Total Style Inconsistent Funds
Dead Funds
38
3
12
-
By Siddharth Bera
1. It defined five equity size categories ranked by total market
India Fund Aggressive Allocation
India Fund Children 1
- 1
-
Managing Director
capitalization:
a. LargeCap (80% of assets invested in equity; ranked from 1-100)
India Fund Contra 1 -
-
Epitome Corporation Pvt. Ltd.
India Fund Dynamic Asset 3
b. MidCap (65% of assets invested in equity; ranked from 101-250) Allocation
c. SmallCap (65% of assets invested in equity; ranked from 251- India Fund Equity - Other 3 1
C
500) India Fund Focused Fund 9 2 loud computing is already at its assist you any given time. The onsite Scalable Solution
d. Multi Cap (65% of assets invested in equity) India Fund Large & Mid-Cap 8 3 best into providing various technicians and the appointments for Cloud solution does not need installation
e. Large and MidCap (at least 35% of assets invested in largecaps India Fund Large-Cap NA - benefits to people working online. resolving queries will smoothen the of equipment on-site. The surveillance is
and at least 35% assets in midcaps) India Fund Mid-Cap - NA done online and the data stored
The connectivity and the ease of process for this reason you will be able
India Fund Multi-Cap 9 2
2. It obligated mutual funds to manage only one product offering in India Fund Small-Cap - NA accessibility is something that everyone to get completer support with elsewhere on remote servers. This helps
each category. Therefore, a fund house with multiple offerings in the India Fund Value 1 3 swears by. However, are you aware that webcasting companies in India. in saving a lot on investing on servers
same category would have to either merge, liquidate, or change the Source: S&P Dow Jones Indices LLC, Morningstar, and Association of Mutual Funds in India. Data cloud can also be used for security and heavy machines for data storage
With cloud based
as of June 30, 2018. Past performance is no guarantee of future results. Table is provided for
style of its existing schemes to the same category if necessary. illustrative purposes. purpose? With cloud based surveillance that are difficult to manage or maintain.
system it is easy to keep an eye on any The only on-site equipment’s would be
These mandates have had important implications for the mutual fund
industry and investors. The fund houses had to not only align their
A change in style during the investment tenure may potentially affect unwanted or potentially threatening surveillance system it transmission and recording devices.
the risk/return characteristics of a portfolio. For example, a multi-cap
portfolios as per the size definitions laid out, but they also had to fund offering participation to small-cap stocks has the potential to
activity. Now, you must be wondering is easy to keep an
about the benefits of cloud surveillance. Cost Effective
ensure a unique offering in each size category. For example, as per the
second rule, a mutual fund house offering two large-cap schemes
augment returns but at a higher risk and potential drawdown in
Through this article you will be able to
eye on any unwanted With the help of advance technology
comparison with a large-cap fund, which may not have been an
would have to either liquidate one scheme, merge it into another investor’s initial expectation at the time of investment. understand the benefits and decide on or potentially and the system, you need not worry
scheme, or change the style of one of the offerings. your own for opting for the same. threatening activity. about expenses. The cloud helps
manage things without being expensive
The aforementioned implications may have been one of the reasons 1. Data from SEBI. https://www.sebi.gov.in/legal/circulars/oct-2017/categorization-and-
for the relatively lower style consistency over the one-year period rationalization-of-mutual-fund-schemes_36199.html Ample Storage as compared to traditional set up and
Always On Access
ending in June 2018, as funds would have initiated the process to 2. Data as per Morningstar category classifications.
It is hardly the era anymore where the systems that need constant looking
It is essential for business owners to
align their product offerings with SEBI’s guidelines. DISCLAIMER: The S&P BSE Indices (the “Indices”) are published by Asia Index Private only way to check upon surveillance after. The technology offers remote
Limited (“AIPL”), which is a joint venture among affiliates of S&P Dow Jones Indices LLC (“S&P have a 24x7 access to the network.
was to check the tape. Finding the assistance on everything without
DJI”) and BSE Limited (“BSE”). Standard & Poor’s® and S&P® are registered trademarks of Another thing is about anytime and
Exhibit 1: Style Consistency in the Indian Equity Large-Cap and Mid- Standard & Poor’s Financial Services LLC and Dow Jones® is a registered trademark of Dow relevant data or tracking the missing having to purchase the technology on-
/Small-Cap Categories Jones Trademark Holdings LLC. BSE® and SENSEX® are registered trademarks of BSE. anywhere conference options.
data seemed tedious and tiring. Another site.
FUND CATEGORY INDIAN EQUITY INDIAN EQUITY These trademarks have been licensed to AIPL. Fortunately with video conference
LARGE-CAP MID-/SMALL-CAP Past performance of an Index is no guarantee of future results. AIPL, S&P DJI and BSE (the thing was that of storage constrain. service providers things are relatively
Total Funds Available in June 2017 66 45 “AIPL Companies”) make no representation or warranty that investment products based on With cloud all these difficulties are For all the reasons stated in this article it
any Index will accurately track index performance or provide positive investment returns. The easy to conduct. You are supported
Style-Consistent Funds 28 33 resolved along with the security system is easy to say that you should opt for
AIPL Companies do not make investment recommendations and do not sponsor, endorse, sell, round the clock with remote-check ins
Style-Inconsistent Funds 38 12 promote or manage any investment fund or other investment vehicle that seeks to provide an that allows storing more data. Retaining cloud surveillance as opposed to
Category Style Consistency (%) 42.4 73.3 investment return based on the performance of any Index. Performance returns for an Index do and faster streaming. Additionally, with
information of longer duration is traditional surveillance. It is for your
Source: S&P Dow Jones Indices LLC, Morningstar, and Association of Mutual Funds in India. Data not reflect payment of charges or fees an investor may pay for investable instruments. AIPL SaaS cloud surveillance it is easy to
from June 30, 2017, to June 30, 2018. Past performance is no guarantee of future results. Table is Companies receive compensation in connection with licensing Indices to third parties. AIPL something that is convenient and way benefit as well as saves a lot on money
Companies. For more information on any of Indices please visit http://www.asiaindex.co.in/. buffer and the transmission is good to
provided for illustrative purposes.
better than the physical storage. investment too.
Akash Jain is part of the Global Research &Design group at S&P Dow Jones Indices,
go.
For example, in the case of the 66 large-cap funds available at the end which is responsible for conceptualizing and developing new investable index-based
of June 2017,2 three failed to survive the one-year investment products across different asset classes. He represents S&P Dow Jones Indices at Remote Maintenance Regular Updates
media engagements, conferences, and other client events. Connectivity through the clouds, it is
horizon. During this period, a total of nine funds moved to the newly For any system, it is essential to get
He is an integral part of Asia Index Private Limited, which is a partnership between S&P possible that you can remotely maintain regular updates that keeps the system Log on www.epitomesolutions.in to know about the
defined focused fund category, eight moved to the large-andmid-cap Dow Jones Indices and BSE Limited (formerly Bombay Stock Exchange).
the footage. Troubleshooting and editing services they offer.
fund category, and nine moved to the multi-cap fund category (see running smoothly. With cloud, you need
He joined S&P Dow Jones Indices in 2016.He has been in the financial markets for
Exhibit 2). This resulted in an overall style consistency of 42.4% for more than six years, including at Deutsche, Credit Suisse, and Edelweiss, with according to your need is easier with not worry about updates. Any new Contact us:
Indian Equity Large-Cap funds over the one-year period ending in experience in both the buyside and the sellside. He has worked extensively in cloud offered by webcasting solution update is automatically done without siddharth@estv.in
June 2018 (see Exhibit 1). researching, back-testing,and trading portfolios across different asset classes. provider. Opting for this service gives manual intervention, the system is thus
He attained his Bachelor of Technology (B.Tech) degree from Indian Institute of
Telephone: +91 98795 44338
For the Indian Equity Mid-/Small-Cap fund category, the style you the benefit of having access to working on its optimum level resolving Website: http://epitomesolutions.in
Technology (IIT Bombay) and holds a Masters of Business Administration (MBA) from
consistency was higher than for largecaps, at 73.3%.Few funds Saïd Business School (University of Oxford). customer support executive who will all the vulnerabilities.
#
32 FORUM VIEWS - DECEMBER 2018 33 ADVERTORIALTECH-SPEAK
TECH-SPEAK TECH-SPEAK
TECH-SPEAK
be accessed via any internet enabled secure environment for the shall enable use of SaaS to progress
SOFTWARE AS A SERVICE (SAAS) device, such as desktops, smart business' data. Providers that from organic growth to prescriptive
phones and tablets. And when app experience service disruptions, deployment. New architecture
data is stored in the cloud, no data is impose unwanted changes to capabilities are added for exchanging
lost if a user’s computer or device fails. service offerings, experience a information, managing solutions, and
security breach or any other issue increasing security. The SaaS
By Jayesh Shah Open Collaboration / Sharing can have a profound effect on the architecture provides a critical level of
Promoter, Prism Cybersoft Private Limited This characteristic of software on customers' ability to use those consistency; building and deploying
demand differs from the traditional SaaS offerings. As a result, users solutions that are similar in design
Software as a service (SaaS) is a service desk management, content means SaaS providers can make model of software delivery which should understand their SaaS enables Intel to reuse capabilities and
software licensing and delivery model management and collaboration. upgrades more often, with less requires IT administrator management provider's service-level agreement, reduce the amount of effort and time
in which software is licensed on a customer risk and much lower of user permission profiles for shared and make sure it is enforced. required for each project. For the
subscription basis and is centrally SaaS customers have no hardware or adoption cost. You also save money access to computing resources. With • There may be legal reasons that future, governance and auditing can be
hosted on Cloud. Software as a service software to buy, install, maintain, or because the SaaS service SaaS, platform tools such as preclude the use of off-premise or two areas for additional design
(SaaS) is a model for the distribution of update. Access to applications is easy: automatically scales up and down automated user provisioning and self out-of-counry data storage. consideration. Using SaaS architecture
software where customers access You just need an Internet connection. according to the level of usage. service account management provides • Security features of the SaaS Cloud as a guide, various suppliers will be
software over the Internet. In SaaS, a SaaS consumers with the necessary Provider may not adequate for your able to standardize on capabilities that
service provider hosts the application Software as a Better Access tools to control how and when they
share tasks, data and information with
needs.
• If you have a need for high-speed
will enable faster and more cost-
effective deployment of business
at its data center and a customer Improved access to data from any
accesses it via a standard web
service (SaaS) is a networked device while making it other users who are internal or external interaction between your internal solutions that are easier to integrate,
browser. This type of software is also model for the easier to manage privileges, monitor to their organization. software or software in another more manageable, and highly secure.
Cloud and the SaaS Cloud Provider,
referred to as on-demand software.
Software on demand is a new
distribution of data use, and ensure everyone sees
the same information at the same time. Software as a Service (SaaS) relying on an Internet connection Jayesh Shah holds B.S. and M.S. in Computer
paradigm for the industry that provides software where To provide SaaS apps to users, you Disadvantages may not provide the speed that you Engineering from University of Bridgeport, USA. He
has more than 25 years of experience in field of IT.
• But SaaS also poses some potential need.
the primary benefit of lowered customers access don’t need to purchase, install, update
disadvantages. Businesses must
He promoted Prism in 1996 and as its MD and CEO
operational and capital expenses for or maintain any hardware, middleware provides Vision, Direction and also takes care of
enterprise information technology software over the or software. SaaS makes even rely on outside vendors to provide Conclusion Strategic Affairs, Marketing and Commercials.
services. Cloud computing is an Internet. sophisticated enterprise applications, the software, keep that software up
and running, track and report
The success of SaaS applications to
date, suggests that adoption will
Prism has recently been awarded by STPI & CeBIT
INDIA for Best IT Exhibitor of ‘Make in India’ Pavilion
important trend that includes several such as ERP and CRM, affordable for at CeBIT India 2014.
categories of service, all offered on SaaS Features organisations that lack the resources accurate billing and facilitate a continue to grow. SaaS architecture
demand over the Internet in a pay-as- Multi tenant Architecture to buy, deploy and manage the required
you-go model. Software as a service A multi tenant architecture, in which all infrastructure and software
(SaaS) is one of these categories; users and applications share a single, themselves. Usually, there is no need
others include platform as a service common infrastructure and code base to manage backups. This is handled by
(PaaS) and infrastructure as a service that is centrally maintained. Because the SaaS Cloud Provider.
(IaaS). SaaS vendor clients are all on the same
infrastructure and code base, vendors Scalable usage
There are a few major characteristics can innovate more quickly and save the Cloud services like SaaS offer high
that apply to most SaaS: valuable development time previously scalability, which gives customers the
• Updates are applied automatically spent on maintaining numerous option to access more, or fewer,
without customer intervention versions of outdated code. A business services or features on-demand.
• The service is purchased on a can write its own software tools and Various pricing models may allow
subscription basis use the SaaS provider's APIs to paying only for what you use. This, for
• Simply access it via the Internet, integrate those tools with the SaaS example, can allow an individual or a
freeing customer from complex offering. small organization to use sophisticated
software and hardware software that they could not afford if it
management. Easy Customisation was installed on an internal, dedicated
The ability for each user to easily server.
SaaS is used in a number of common customise applications to fit their
business areas, including customer business processes without affecting Access app data from anywhere
relationship management (CRM), the common infrastructure. Because of With data stored in the cloud, users
document management, accounting, the way SaaS is architected, these can access their information from any
Backoffice software used for Capital, customization are unique to each Internet-connected computer or
Commodities, Currency markets, company or user and are always mobile device. SaaS provides Cross
Human resource (HR) management, preserved through upgrades. That Device Compatibility. Applications can
34 FORUM VIEWS - DECEMBER 2018 35 FORUM VIEWS - DECEMBER 2018GLOBALGLOBAL
INSIGHTS
INSIGHTS GLOBALGLOBAL
INSIGHTS
INSIGHTS
M&A ACTIVITY IN ASIA PACIFIC: SELECTED COUNTRIES
ASIA-PACIFIC MARKETS In October 2018, China and Australia have the most active markets with largest monthly deal values amounting to US$ 16.9 Bn and US$ 16.2 Bn
MONTHLY HIGHLIGHTS respectively. In terms of YOY change, Vietnam has seen an impressive 269% increase in M&A deal count with a remarkable 87% growth in deal value. The
Philippines has seen significant increase in deal value with a growth of 2,888% on a year-on-year basis.
AND INSIGHTS No. of Deals and Value by Country (October’18)
Country No. of Deals Value of Deals ($USDmm)
China 277 16,873.70
Australia 136 16,224.30
Japan 141 9,635.30
India 89 9,195.70
South Korea 67 6,789.30
Malaysia 45 214.20
Hong Kong 36 1,764.50
Singapore 33 359.70
Vietnam 37 187.40 Key Threshold (No. of Deals)
Thailand 14 60.60 0 - 14
New Zealand 20 918.20 >14 - 55
Indonesia 21 334.40
Philippines 12 13.40 >55 - 111
Taiwan 7 911.20 >111 - 166
>166 - 222
No. of Deals and Value YTD Activity (18’ vs. 17’) >222 - 277
No. of deals Value of Deals ($USDmm)
18 YTD 17 YTD YoY Growth 18 YTD 17 YTD YoY Growth
Jan 1, 2018 - Jan 1, 2017 - YoY Comparison Jan 1, 2018 - Jan 1, 2017 - YoY Comparison
31-Oct-2018 31-Oct-2017 Through 31-Oct-2018 31-Oct-2017 Through
31-Oct-2018 31-Oct-2018
China 3,325 3,841 -13% 220,594 291,780 -24%
Japan 1,396 1,314 6% 58,241 39,621 47%
Australia 1,333 1,254 6% 93,207 66,948 39%
Key findings: India 1,161 1,004 16% 63,653 30,896 106%
South Korea 813 908 -10% 41,575 36,104 15%
ŸM&A Activity By Country, Sector Malaysia 362 443 -18% 5,662 16,075 -65%
ŸInitial Public Offerings Vietnam 421 114 269% 3,125 1,669 87%
Hong Kong 379 446 -15% 31,483 42,405 -26%
ŸPrivate Equity Investments And Buyouts Singapore 311 365 -15% 12,057 52,143 -77%
Indonesia 149 219 -32% 10,423 4,396 137%
ŸMarket Attributes: Index Dashboard New Zealand 217 191 14% 5,410 1,798 201%
Source: S&P Global Market Intelligence as of November 1, 2018. Figures
are based on M&A announcement dates. Includes both closed and
ŸTotal Return of Asia Fixed Income Indices Thailand 227 243 -7% 20,685 8,841 134%
pending transactions as well as those without transaction values. Charts
Philippines 95 89 7% 102,501 3,430 2888%
are provided for illustrative purposes.
Taiwan 97 103 -6% 7,707 6,054 27%
Total 10,286 10,534 -2% 676,324 602,160 12%
Disclaimer: Copyright © 2018 by S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved.
M&A ACTIVITY IN ASIA PACIFIC: SELECTED SECTORS
YTD October 2018, YOY change, Healthcare topped the industries with 158% deal value growth, together with a 22% increase in deal count. Industrials
These materials have been prepared solely for information purposes based upon information generally available to the public and from sources believed to be came with the second highest deal value growth showing a 79% increase, albeit a relatively flat in terms of deal count.
reliable. No content (including index data, ratings, credit-related analyses and data, research, model, software or other application or output therefrom) or any part
thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without No. of Deals YTD Activity (18’ vs. 17’) Value of Deals (USDmm) YTD Activity (18’ vs. 17’)
the prior written permission of S&P Global Market Intelligence or its affiliates (collectively, S&P Global). The Content shall not be used for any unlawful or
No. of deals No. of deals
unauthorized purposes. S&P Global and any third-party providers, (collectively S&P Global Parties) do not guarantee the accuracy, completeness, timeliness or
availability of the Content. S&P Global Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the '18 YTD '17YTD YoY Growth '18 YTD '17 YTD YoY Growth
Content. THE CONTENT IS PROVIDED ON “AS IS” BASIS. S&P GLOBAL PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT Sector Jan 1, 2018 - Jan 1, 2017 - YoY Comparison Sector Jan 1, 2018 - Jan 1, 2017 - YoY Comparison
NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS 31-Oct-2018 31-Oct-2018 Through 31-Oct-2018 31-Oct-2018 Through
OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE 31-Oct-2018 31-Oct-2018
CONFIGURATION. In no event shall S&P Global Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or Industrials 1653 1626 2% Industrials 171,284 95,637 79%
consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by
negligence) in connection with any use of the Content even if advised of the possibility of such damages. Discretionary 1311 1295 1% Real Estate 89,774 139,607 -36%
IT 1189 1186 0% Discretionary 64,141 55,488 16%
S&P Global Market Intelligence’s opinions, quotes and credit-related and other analyses are statements of opinion as of the date they are expressed and not
statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any Real Estate 937 1041 -10% Materials 59,681 50,019 19%
security. S&P Global Market Intelligence assumes no obligation to update the Content following publication in any form or format. The Content should not be relied Materials 798 779 2% Utilities 40,303 30,296 33%
on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and
Healthcare 666 548 22% IT 37,904 45,944 -17%
other business decisions. S&P Global Market Intelligence does not act as a fiduciary or an investment advisor except where registered as such. S&P Global keeps
certain activities of its divisions separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain Financials 569 632 -10% Teleco. Services 32,784 34,724 -6%
divisions of S&P Global may have information that is not available to other S&P Global divisions. S&P Global has established policies and procedures to maintain Staples 562 519 8% Healthcare 32,490 12,606 158%
the confidentiality of certain non-public information received in connection with each analytical process.
Teleco. Services 562 539 4% Financials 31,705 32,953 -4%
S&P Global Ratings does not contribute to or participate in the creation of credit scores generated by S&P Global Market Intelligence. Lowercase nomenclature is Utilities 315 266 18% Energy 30,844 21,995 40%
used to differentiate S&P Global Market Intelligence PD credit model scores from the credit ratings issued by S&P Global Ratings.
Energy 191 148 29% Staples 26,442 23,078 15%
S&P Global may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P Global
NSD 1533 1420 8% NSD 58,971 50,551 17%
reserves the right to disseminate its opinions and analyses. S&P Global's public ratings and analyses are made available on its Web sites,
www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through Total 10286 9999 3% Total 676,324 592,898 14%
other means, including via S&P Global publications and third-party redistributors. Additional information about our ratings fees is available at
www.standardandpoors.com/usratingsfees. Source: S&P Global Market Intelligence as of November 1, 2018. Figures are based on M&A announcement dates. Includes closed
and pending transactions as well as those without transaction values. NSD - No Sector Disclosed. Tables are provided for illustrative
purposes. Data sorted by no. of deals and by transaction value from highest (darkest green) to lowest (lightest green).
Contact Information: If you have any questions relating to the content featured in the publication, please contact MI-APAC-Marketing@spglobal.com
36 FORUM VIEWS - DECEMBER 2018 37 FORUM VIEWS - DECEMBER 2018You can also read
