J.B. Nagar g CPE Studyy Circle of WIRC Changing Trend in Practice related to Capital p Markets CA BhaveshVora 06-12-2015 Contents Statistics of Membership Statistics of Capital Market Changes Ch iin R Regulatory lt E Environment i t Challenges in Profession Goal Setup and Execution Strategy Need for Merger Steps for Merger Future of profession p 2 JB Nagar CPE CA BhaveshVora 06-12-2015 Change is INEVITABLE, P Progress is i OPTIONAL Tony Robbins 3 JB Nagar CPE CA BhaveshVora 06-12-2015 Statistics – members ICAI Trend As on Associate Fellow Total Increase 1-4-1950 1120 569 1689 - 1-4-1961 4059 1590 5649 3960 1-4-1981 16796 8642 25438 19789 1-4-2001 51603 44789 96392 70954 1-4-2005 68052 55494 123546 27154 1-4-2010 94991 66525 161516 37970 1-4-2015 160708 79266 239974 78458 S Source - ICAI 4 JB Nagar CPE CA Bhavesh Vora 06-12-2015 Statistics – members WIRC (1-4-2014) (1 4 2014) Fellows Associate Totall T Numbers Western W Region % to W Western Region Total Fulltime 61105 17676 80.25 Part-Time 2975 888 04.03 Not In practice 12167 3462 15.72 Sub-Total 76247 22026 100.00 Fulltime 41335 14438 25.48 Part-Time 5356 2095 03.70 Not In practice 106208 40121 70.82 Sub Total Sub-Total 152899 56654 100 00 100.00 Grand Total 229146 78680 S Source - ICAI 5 JB Nagar CPE CA Bhavesh Vora 06-12-2015 Statistics – members WIRC (1-4-2015) (1 4 2015) Fellows Associate Totall T Numbers Western W Region % to W Western Region Total Fulltime 63702 18401 80.57 Part-Time 2906 855 3.74 Not In practice 12658 3582 15.69 Sub-Total 79266 22838 100.00 Fulltime 43498 15163 25.18 Part-Time 5434 2113 3.51 Not In practice 111776 42953 71.31 Sub Total Sub-Total 160708 60229 100 00 100.00 Grand Total 239974 83067 S Source - ICAI 6 JB Nagar CPE CA BhaveshVora 06-12-2015 Important Indicators - Capital Market P i l Particulars A on 31.03.2011 As 31 03 2011 As on 31st A December, 2014 Brokers – Cash Segment 9,235 7,306 Sub Brokers 83,952 44,540 Brokers – Equity Derivatives 2,301 3,008 Brokers – Currency Derivatives 1,894 2,406 5,92,250 10,51,343 5,067 5,541 1,99,62,101 ( on 31.03.2012)) (As 2,30,28,426 Mutual fund (AUM) (Rs. in Crores) No. of listed companies – BSE No. of beneficial owner a/cs (DP) Source - SEBI 7 JB Nagar CPE CA BhaveshVora 06-12-2015 Resource Mobilisation - PMS Particulars As on 31.12.2010 Discretionary PMS (No. of clients As on 31st December, ece be , 2014 0 4 67,417 38,849 2,67,433 6,62,464 Non -Discretionary PMS (No. of clients 3,685 3,207 Discretionary PMS (AUM) (Rs.in Crores) 6,902 45,035 Advisoryy PMS (No. ( of Clients)) 8,078 , 4,165 , Advisory PMS (AUM) (Rs. in Crores 88,611 1,60,885 267 193 Discretionary PMS (AUM) N off R No. Registered i d PMS Source - SEBI 8 JB Nagar CPE CA BhaveshVora 06-12-2015 3rd December, 2014 Turnover and Market Capitalisation Particulars 2010-11 Apr-Dec 2014 Cash Segment Turnover (Rs. in Crores)) – BSE 11,05,027 6,23,162 Cash Segment Turnover (Rs. in Crores) – NSE 35,77,410 31,55,162 Market M k Capitalisation C l – BSE (Rs. in Crores) (As on data) 68 39 084 68,39,084 98 36 377 98,36,377 Market Capitalisation – NSE (Rs. in Crores) (As on data) 67,02,616 96,00,459 Source - SEBI 9 JB Nagar CPE CA BhaveshVora 06-12-2015 3rd December, 2014 Important SEBI Regulations Year Regulation 2015 SEBI(Procedure for Search and Seizure) Repeal Regulations, 2015 10 2015 SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 Regulations, 2015 SEBI (Issue and Listing of Debt Securities by Municipalities) Regulations 2015 Regulations, 2015 2014 2014 2014 2014 SEBI (Prohibition of Insider Trading) Regulations, 2015 SEBI (I (Infrastructure f t t IInvestment t tT Trusts) t )R Regulations, l ti 2014 SEBI (Real Estate Investment Trusts) Regulations, 2014 SEBI(R SEBI(Research hA Analysts) l t )R Regulations, l ti 2014 SEBI (Foreign Portfolio Investors) Regulations, 2014 JB Nagar CPE CA BhaveshVora 06-12-2015 Important SEBI Regulations Year Regulation 2013 SEBI (Issue and Listing of Non-convertible Redeemable Preference shares)) Regulations, g 2013 2013 SEBI (Investment Advisers) Regulations 2013 2012 SEBI (Alternative Investment Funds) Regulations, 2012 2011 SEBI {KYC (Know Your Client) Registration Agency} Regulations 2011 Regulations, 11 JB Nagar CPE CA BhaveshVora 06-12-2015 Merger of FMC with SEBI - Many Avenues ……. 12 JB Nagar CPE CA BhaveshVora 06-12-2015 Changing Trends……. Trends Checklist based audit / review Regulators becoming friendly Availability A il bili off information i f i andd guidance id Introduction of more regulations for capital market intermediaries Increase in compliances and regulations Computerisation / Use of technology Increase in white collar frauds JB Nagar CPE 13Study Circle CA Bhavesh Vora 06-12-2015 CA Bhavesh Vora 24th November, 2013 Challenges – Capital Market Regular g updation p of regulations g / issuance of circulars Increase in Compliances – Internal Audit Reports / ce t cat o / Sa certification Sample p e ssizee – Knowledge ow e ge o of bus business ess Reduction in Fee scale – not proportion to increase in scope and volume Non availability of capable team / resources Changing attitude of clients towards audit Industry specific risk – if sector has grown, you grow, if no you don’t JB Nagar CPE CA Bhavesh Vora CA Bhavesh Vora 06-12-2015 24th November, 2013 Challenges – Practice in general Economical Challenges g 2. Regulatory Challenges 3 Organizational Challenges 3. 1. HR Challenges ii Technological Challenges ii. i. 4. Personal Challenges JB Nagar CPE CA Bhavesh Vora CA Bhavesh Vora 06-12-2015 24th November, 2013 The secret of Change is to focus all of your energy not on fighting the old, but on building the new Socrates 16 JB Nagar CPE CA BhaveshVora 06-12-2015 Revisit/Re engineer strategies Revisit/Re-engineer New clients /Prospective p Clients Vs. Existing g Clients Billing Patterns/ Timely Billings Faith a t aand U Understanding e sta g aamongst o gst pa partners t e s aand sta staff and their remuneration Learning soft skills Updation of knowledge /Training Traditional to technology upgradation JB Nagar CPE 17 CA BhaveshVora 06-12-2015 CA Bhavesh Vora a bit change g in Approach pp Control the Processes……Not People 18 JB Nagar CPE CA BhaveshVora 06-12-2015 Way forward Goal Plans Executive Strategy gy Monitoring Where do I fit myself? 19 bJB Nagar CPE CA Bhavesh CA Bhavesh Vora Vora 06-12-2015 th 24 November, 2013 Executive Strategy Identify the challenges Provide Vaccines Get Immunized Build Revenue, Brand and Experiences Perform the Work Goals can be same but strategies g differs 20 JB Nagar CPE CA BhaveshVora 06-12-2015 MERGER possibilities Need for merger Growth of client’s business and expectations New Services/New Areas Increasing regulatory requirements Retention R i off key k personnell Investment in technology and infrastructure “Nothing “N thi New” N ” in i lif life… Knowledge/Skill updation challenges Personal P l Limitations Li it ti 21 JB Nagar CPE CA Bhavesh Vora CA Bhavesh Vora 06-12-2015 th 24 November, 2013 Steps p for merger g 22 Self Analysis y Preparing for change Identifying right partner(s) Understanding the deal breakers Due diligence of partners, firm and other aspects Informal Discussion PProfit f Sharing Sh Ratio and broad terms Formal Documentation Cultivating C l common Values and vision JB Nagar CPE CA Bhavesh Vora 06-12-2015 Future of Practice – Capital Market Internal Audit to Control definition and control settings Activity based consultancy in addition to sector based consultancy Execution and result oriented practice Auditingg / Computing p g knowledge g to legal g Domain Competing C ti with ith Law L H Houses Specialised services to super specialised services 23 JB Nagar CPE CA BhaveshVora 06-12-2015 Future of the profession 24 JB Nagar CPE Compliance To Consulting Value Protection To Value Creation Service Provider T To Solution Provider Size To Positioning CA BhaveshVora 06-12-2015 Everyone has inside himself a piece of good news! The good news is that you really don't know how great you can be, how much you can love, what you can accomplish, and what your potential is! ~ Anne Frank JB Nagar CPE clave CA Bhavesh Vora 2nd February, 2013 06-12-2015 J.B. Nagar g CPE Studyy Circle of WIRC Changing Trend in Practice related to Capital p Markets CA BhaveshVora 06-12-2015