FICCI CAPAM 2014 Revitalizing Indian Capital Markets: Role of Foreign Investments & Domestic Institutional Investments October 8, 2014: Hotel Trident, Nariman Point, Mumbai Programme 8:15 am onwards Registration 9:30 am - 10:45 am Inaugural Session     Welcome Address by Ms. Naina Lal Kidwai, Immediate Past President, FICCI and Chairman- India, HSBC and Executive Director, HSBC Asia Pacific Remarks by Mr. Sunil Sanghai, Chairman, FICCI Capital Markets Committee and MD & Head- Banking, India, HSBC Inaugural Address by Mr. U.K. Sinha, Chairman, Securities and Exchange Board of India Concluding Remarks by Mr. Anup Bagchi, Co-Chair, FICCI’s Capital Markets Committee and MD & CEO, ICICI Securities Ltd. 10:45 am - 11:00 am Tea Break 11:00 am - 12:15 pm Session I: Global Investors’ Perspective Foreign investor confidence in India has been rattled in the last few years, resulting from a series of scams, corporate governance issues and unclear policy guidelines. This was further accentuated with the weakening of the Rupee (driven by concerns on the widening fiscal and current account deficits), which further drove down investor returns. Net equity inflow from Foreign Institutional Investors (FII) declined by 49% to US$ 13.2 bn in FY14; FII debt witnessed a net outflow of US$4.6bn during the same period. Recognizing the urgency, the newly elected Government has been proactively working with market regulators to revive economic growth and restore overall investor confidence in the country. Relaxation of FDI policies in select sectors, particularly in infrastructure and defence, is expected to attract incremental foreign inflows. SEBI’s recent relaxation of listing norms, increased anchor investor allocation and new foreign portfolio investor (FPI) regulations, along with the Reserve Bank of India’s revised Basel III-norms are further expected to boost primary markets and overall capital-raising. However, given gradual recovery of developed economies, what is the risk of further foreign flow diversion away from India? In this session, leading representatives from the Government, regulators and financial investors come together to debate the current investment climate in India and potential opportunities, as well as the incremental steps that may be considered to further restore investor confidence in India. Page 1 of 4 Moderated Panel Discussion Panelists:          Special Remarks by Mr. Rajeev Kumar Agarwal, Whole-Time Member, SEBI Special Remarks by Mr. Manoj Joshi, Joint Secretary (Financial Markets), Department of Economic Affairs, Ministry of Finance Mr. Atul Joshi, M.D. & CEO, India Ratings & Research Mr. Avinash Kulkarni, Executive Vice President & Group Head-Capital Markets Group, SBI Capital Markets Limited Mr. Kapil Seth, M.D. and Head- India, HSBC Securities Services Mr S. Naganath, President & Chief Investment Officer, DSP Black Rock Mutual Fund Mr. Siddharth Shah, Partner (Funds & Corporate Practice Group), Khaitan & Co. Mr. Padmanabh Sinha, Managing Partner- Private Equity, Tata Capital Mr. Ravi Varanasi, Senior Vice President, National Stock Exchange Moderator: Mr. Rohit Sipahimalani, Co-Head, Investment Group, Co-Head, Portfolio & Strategy Group and Head- India, Temasek International Pte. Ltd. 12:15 pm –1:30 pm Session II: Channelizing domestic savings into capital markets Domestic institutional investors, which include insurance, pension and mutual funds, play a crucial role in contributing towards India’s capital markets. India’s largest insurer, Life Insurance Corporation of India (LIC), is reportedly investing 20% of its total investment corpus of INR 3 lakh crore (i.e. INR 60,000cr in equity markets; this would be a 50% rise compared to LIC’s contribution last year. The Government continues to take steps to attract incremental domestic investments into the capital markets: the recently floated Central Public Sector Enterprise (CPSE) Exchange Traded Fund (ETF), garnered significant interest from investors, by offering significant incentives, including pricing discount, highdividend yield high-quality PSU stocks yields and tax benefits. However, declining domestic savings and investment rate trends over the last few years are a major concern, and any further deterioration would be detrimental for India’s long-term economic growth prospects. This session brings together leading domestic institutional investors together with public sector thought leaders to explore what incremental steps could the Government take to further encourage domestic savings and channel such investments into the capital markets. Moderated Panel Discussion Panelists:  Special Remarks by Mr. Radhakrishnan Nair, Whole-Time Member, (Finance & Investments), Insurance Regulatory and Development Authority  Special Remarks by Dr. Ajay Bhushan Pandey, Deputy Director General, Unique Identification Authority of India  Special Remarks by Ms. Madhavi Das, Executive Director, Pension Fund Regulatory and Development Authority  Mr. Amitabh Chaudhry, Chair, FICCI’s Insurance & Pensions Committee & MD & CEO, HDFC Standard Life Insurance Company Ltd.  Mr Praveen Kutumbe, Executive Director- Investment Operations, LIC of India Page 2 of 4    Mr. Sanjay Miranka, Executive Vice President & Head – Capital Market Group, Aditya Birla Finance Mr. Naren Sankaran, CIO, ICICI Prudential AMC Mr. Sundeep Sikka, President & CEO, Reliance Capital Asset Management Moderator: Mr. Anup Bagchi, Co-Chair, FICCI’s Capital Markets Committee and MD & CEO, ICICI Securities Ltd. 1:30 pm – 2:30 pm Networking Luncheon 2: 30 pm – 3:00 pm Session III: Special Address by Mr. Ramesh Abhishek, Chairman, Forward Markets Commission Moderator: Mr. Jayant Manglik, Chair, FICCI’s Working Group on Commodities & President- Retail Distribution, Religare Securities Ltd. 3:00 pm – 4:30 pm Session IV: Regime for Foreign Investments Foreign direct investment (FDI) remains a critical catalyst for the Indian economy, not only supplying essential capital, but also facilitating increased domestic manufacture, job creation and technology enhancements. Since embarking on economic liberalization and reforms in 1991, India has witnessed significant relaxation in foreign investment policies with several sectors permitting up to 100% FDI investment under the automatic route. However, despite efforts, FDI equity inflows into the country have remained flat over the last few years (in FY14, FDI equity inflows amounted to US$24.3bn vs. US$24.6bn in FY08) Following the decisive general elections results, there has been a renewed thrust to attract foreign investments into the country, with recent policy changes in defence, railways and infrastructure serving as further testament to the Government’s commitment to the cause. This session brings together key policy makers, regulators and private sector business leaders to discuss recent efforts being taken to attract FDIs into India, and the incremental steps that may be considered to improve the overall foreign investment climate. Moderated Panel Discussion Panelists:  Special Remarks by Mr. Harun R. Khan, Deputy Governor, RBI  Special Remarks by Mr. Prashant Saran, Whole-Time Member, SEBI  Special Remarks by Mr. Atul Chaturvedi, Joint Secretary, DIPP, Ministry of Commerce & Industry  Special observations by Dr. Saurabh Garg , Joint Secretary (Investments), Department of Economic Affairs, Ministry of Finance  Mr. Vikram Gandhi, Founder & CEO, VSG Capital Advisors and Senior Advisor, Canada Pension Plan Investment Board (CPPIB)  Mr. Somasekhar Sundaresan, Partner, J. Sagar Associates  Mr. Nehal Vora, Chief Regulatory Officer, Bombay Stock Exchange Ltd. Moderator: Mr. Sunil Sanghai, Chairman, FICCI Capital Markets Committee and MD & Head- Banking, India, HSBC 4:30 pm – 4:45 pm Tea Break Page 3 of 4 4:45 pm – 6:15 pm Session V: Real Estate and Infrastructure Financing REITs and business trusts are preferred investment vehicles around the world, given the benefits they accrue to key stakeholders. While investors are provided with a less-risky investment avenue in income-generating real estate, sponsors benefit from liquidity and increased flexibility to deploy capital in new development projects. Since their introduction in the early 2000s, REITs have been rapidly adopted across Asia, with the current market estimated at over US$140 bn. Recognizing this opportunity, the Indian Government, together with regulators, is taking a number of steps to provide a conducive framework for registration and regulation of REITs and modified REITs-type structure for infrastructure projects (Infrastructure Investment Trusts, or InvITs) in India. It is envisaged that these structures would reduce dependence on the banking system by attracting longterm finance from foreign and domestic investors. [However, will the announced tax regime achieve the desired objective?] In this session, our senior panelists explore India’s potential to emerge as a favored destination for REITs and InvITs creation, and identify key steps that may be taken to encourage active participation among domestic and foreign investors. Moderated Panel Discussion Panelists:  Special Remarks by Mr. R. Gandhi, Deputy Governor, RBI  Special Remarks by Mr. Ananta Barua, Executive Director, Securities & Exchange Board of India  Mr. Peter Best, Managing Director, Co-Head of Real Estate Advisory, Asia Pacific, HSBC  Mr. Subrata Dutta Gupta, Principal Financial Officer, International Finance Corporation  Mr. Neel Raheja, Group President, K Raheja Corp  Mr. Anuj Ranjan, Managing Partner & Country Head-India, Brookfield Asset Management  Ms. Ashu Suyash, CEO, L&T Mutual Fund Moderator: Mr. Dinesh Kanabar, Chair, FICCI’s Taxation Committee & Deputy CEO, KPMG India 6:15 pm – 7:00 pm Valedictory Session: Introduction and Moderation by Mr. Sunil Sanghai, Chairman, FICCI Capital Markets Committee and MD & Head- Banking, India, HSBC Valedictory Address by Mr. Jayant Sinha, Member of Parliament (Lok Sabha), BJP Vote of Thanks by Mr. Anup Bagchi, Co-Chair, FICCI’s Capital Markets Committee and MD & CEO, ICICI Securities Ltd. 7:00 pm onwards Networking Cocktail Reception Page 4 of 4