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The C B Bhave Chat

Mr Bhave: In the midst of this highly powerful gathering, I am but a small Indian. Mahybe it's not your turf, but savings for small investors in india are a major scam area which nobody seems to address. Consider: I,as an educated Indian, started earning about 22 years ago, and quite well. In this 22 years, my LIC policy has computer errored itself, 2 Indian companies including a TATA company have swallowed my PF, asorted FDs disappeared, chasing share transfers has become a futile exercise and any sort of compulsory deposit scheme bounces back on the small investor. Then the alternative is to EARN CASH SPEND CASE AND EVEN SAVE CASH (or bullion). Even the neighbourhood chit fund wallah has got more customer response and integrity than any of the Government run finance setups. I have recently completed a market survey for a likely entrant into the insurance market in India, where it turns out the maximum competition will be from the grey insurance sector? Comment on how you are relevant tome? I don't want to waste my time as a small investor with, say rs 1-2 lakhs disposable funds every year for saving...

Amber rimpley: The transactions on the stock exchange now take place in a computerized envoirnment and audit trails are available. I think the transparenncy in trading is excellent and I would advise you to take up the matter with the concerned stock exchange if you have a problem with any paticular deal. the depository in any case does not deal with trades except at the settlement stage.

Mr Bhave, thank you for being so kind and so very informative. I just wanted to know whether the NSD will work as an adjunct to the Securities and Exchange Board of India?

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As a former SEBI official, you are in excellent position to let us know why the BSE is so obstructive. Why cannot the BSE co-operate with the NSD?

Amber: The depository cannot require that all share holders come through the depository. The choice is with the investors, however we are told that internationally depositories take between five to ten years to be fully established in the market place. we would be happy with a time frame of three to five years but ultimatley it will depend on our ability to deliver and the investor accepting our services.

..?oh Sir ji?

Mr Bhave, how does it feel - donning this mantle at such a young age?

Hello, Sir ! How would you define the status of the NRI in the Stock market ! Being one myself, this will be an interesting thing to know !!!

brian wallis: Thanks, but I'm no guru. In any case, I'm told that you ought to be either reckless or totally ignorant to claim that you can predict market movements. I think the beauty of the market is that no one can consistently predict it's movement.

Sir:My contention is that the capital market is no longer relevant to me as an Indian unless:a)I may be a total novice or b) if I have more than rs50 lakhs or so to play with. The average put away about rs 5 lakhs a year person gets far better returns (if he already owns a house) in the grey market. what/who will ever realise and addres this?

What about the NRI STATUS, MR Bhave ?????????

..?oh Sir ji?

Ashima: NSDL is making every effort to increase the awareness of the intermediaries as well as investors about the depository operations. Apart from this one on one meetings, the present chat show, conference calls with overseas investors are among the various efforts being made by us to attract business.

..:(-

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Mr Bhave, do you think the BSE's setting up of a depository will lead to an BSE-NSE-kind of confrontation?

Vishal:Nobody likes us? whereabouts in the NRI lexicon?

broke fundas: You seem to have a particularly bad experience and I can understand your feelings. But I must express my inability to either help or offer any comments. As you, yourself said this is not my turf. But I take the message that the depository must focus on investors satisfaction to be succesful.

I'm an NRI from Bombay, talking from Dubai !!! I would like to know about Mr Bhave's views towards people like us !!!!!!!! May I request an answer, Mr Bhave ???

Amber: Everry depository will work under the supervision of SEBI. This is a requirement of law and the depository must abide by the regulations set by SEBI for the depositories.

How soon do you expect see the results on the NSDL?

Vishal Oberoi: As far as the depository is concerned there is no distinction between one investor and another. If the NRI investor do have some special issues which needs to be addressed, we would be happy to have a dialogue in this regard.

Kanti Singh: I don't know, if I'm young but I feel priveleged to have the opportunity of setting up a depository in India.

Sir:thanx.Agreed not your turf, but maybe you can get the message across to the right quarters. I am not looking for specific help. Point I make is that mine in NOT an extraordinary or exceptional case. there are enough of us who feel that OK "rs 1-2 or little more lakhs gone down the drain, who has the time or inclination to fight city hall, consumer fora being what they are..." In such a case, you, yourself,m being a salaried man wud realise that YOUR Indian economy has no place for MY KIND AND SIZE OF GUY. Read my lips, and check it out on the street...

Thank you kindly, sir ! I have a business meeting in a few minutes and had the spare time to talk with you ! It has been very interesting ! Goodbye !

ronald: The legislation allows more than one depository to be set up and it would be unrealistic on our part to expect that nobody else will set up a depository merely because we are first in the business. I think the key to our existence is efficent and cost effective investor serivce. I don't see any need for a confrontation in this. The investor will exercise the choice.

Have you sought the opinions of foreign investors during the setting up of the NSD? After all, it thanks to FIIs that the NSD got set up in the first place!

Correction:Actually I shall fight it out. After I retire. Message here for all you phirangee listeners is that YOUR COMPETITION IS FROM THE GREY (do number) market, it runs 90 percent of our economy. The others (govt. types) only THINK they run it. anycase gotto go have fun on the chat. Sing with Mehnaz, strip with Milind and put your money on Bhave! Horses for courses. Cheers, I got to go and earn a cash lakh or two taadaa (not TADA)...

Does that mean that there will be a pricing war? How will the NSD be different from the BSE depository? And if all the stock exchanges set up their own depositories where does that leave the NSD?

Amber ripley: Our interaction with the FIIs indicates that they would be very keen to join the depository. We will soon know when the operation starts. the demand for the depositories has been voiced in India for quite some time by investors and in the last two years the FIIs have also done so.

I need to clarify one point: Does it mean that if one company -- say RIL is part of the NSD -- it cannot be part of the BSE depository.

thanks for all the questions, but since I've to attend a meeting. I'll take last two questions.

Brian: No such exclusion exists either in law or in the regulations framed by SEBI.

Sir, you have not set a time frame when 100 % of the transactions take place through depostories.

Thank you Mr Bhave for your answers.

Sir, Thanks for your answers!!!

ronald turner: In service industry it is possible for one service provider to be very different from another even though they appear to be rendering the same service. Depository is after all a service institution and this case should be no different. We have the USA example where over a period of time the Depository Trust Company (DTC) in New York has the dominant market share even though other depositories exist.

THANKS A LOT, I ENJOYED MYSELF, I HOPE YOU DID TOO, SEE YOU SOME OTHER TIME ON CHATROOM.

Mr Bhave, it's been a pleasure speaking with you. Though I am surprised you did not respond to query about the timeframe.

Mr Bhave, it's been a pleasure speaking with you. Though I am surprised you did not respond to query about the timeframe.