The ball was set rolling at Arthoday, 2012, the Finance Conclave organised by Institute of Management, Nirma University, on August 18, 2012. The theme of the conclave was “Opportunities and Challenges for creating a New Financial Order”.
Mr. Rajesh Mokashi, Deputy Managing Director, CARE Ratings, addressed the inaugural session on the topic “Risk Management and Challenges” and stressed on the importance of Qualitative and Quantitative Risk Analysis. Talking of the sub-prime crisis, he remarked how financial engineering was used to make the risk disappear in the complex financial instruments. The underlying assumptions used had been working for the last 20 years and so nobody raised an alarm, resulting in the sub-prime bubble. He also added, “Securitisation is a very important tool from the risk management perspective. It creates liquidity, which is instrumental in meeting unforeseen circumstances.”
The next session was addressed by Mrs Neelam Bhardwaj, Former General Manager, SEBI on the topic “Capital market in today’s environment”. She talked of the metamorphosis of Indian Financial System that moved from being driven by control to being driven by regulation. She praised the Indian Regulator SEBI for its transparency and touched upon the policy procedures, challenges and reforms in the securities market.
The students also had the pleasure of having an alumnus, Mr. Prakash Dhoot, VP & Head Finance – Motilal Oswal Private Equity Advisors Pvt. Ltd, share insights on the topic “India’s Strategy – Ray of Hope”. Despite India’s slowing growth, he had an optimistic view of the situation. He mentioned, “Although there is a dark cloud in the form of droughts, the Indian government is trying to ease the situation by subsidizing seeds, power and proposing additional allocation to NREGA. These measures will help to sustain the farmers but will not able to increase productivity.” He also emphasised on policy stirring and political alignments that could help ease the policy paralysis.
The next session was addressed by Mr. M. K. Datar, General Manager, IDBI Bank Ltd who completed the circle by talking about “Risk Management in Banks”- need for international convergence and relevance of BASEL standards. He remarked, “If banks refuse to take these risks (Credit, Liquidity and Market Risks), then they will not be able to do business.”
Concluding the Conclave, the valedictory session was chaired by Mr. Mihir Joshi, MD, GVFL, who emphasised the importance of credit assessment and risk and return trade-off.
The first Finance Conclave- Arthoday 2012 organised by the institute helped broaden the students’ horizons with respect to the financial challenges and regulations in the wake of policy paralysis which has gripped the country.
(Content Courtesy: Media Committee, IMNU; Photo courtesy: Dhrumil Oza & Ameya Pai Angle)