Regulatory convergenceRegulatory convergence

TechnologyTechnology

Innovative professionalism Innovative professionalism

Vijaya SampathBharti Group

ICSI National Convention

14 October 2011, Agra

The impact of convergence upon regulation will probably far exceed the impact of regulation upon convergence. So the great question for the future is not how convergence can, or should be regulated but how regulation must change in the light of convergence

Fali Nariman committee on convergence in 2000

Increasing outbound M&A transactions : global foot print

Urge to change “Emerging” status to developed economy

Classic economics : movement of capital, people, assets, organization : eliminate barriers over time

Dismantling of state monopolies: Aviation, Telecom, Power, Infrastructure and PPP model

Geographic concentration of industries for economic efficiency

Rise in economic power directly proportional to increase in political influence on world stage

Optic fiber and capital markets link what geographic boundaries and tariffs kept apart

Drivers of effective policy and law

India low on competitiveness ranking (overall 56, burden of government regulation 97, basic requirements 91)

Self inflicted wounds: restrictions imposed by government policies

Progress across select but critical sectors neither consistent nor fast enough

Archaic and obsolete laws/ regulations out of sync with times

Internecine strife between various vested interests : crab theory

Low impetus to real economic growth: many impediments

Holistic and concerted effort required: giant leap forward not small hesitant steps

Need for regulatory convergence

Enhance the role of competition in government policy at centre and state levels : uniform access to markets

Effective mechanism for synergy between sectoral regulations and CCI – complementary Vs contradictory

Culture to enhance competition in domestic, local and international markets: larger public good and consumer welfare

Create a framework of policies and regulations to facilitate competitive outcomes in the market : harmonious construction

Provide a platform for efficient business environment and resource allocation : equal treatment and equitable opportunity

Prevent abuse of market power and promote good governance : effective implementation of regulations

Policies for economic incentives to pursue productive efficiency and quality innovation: promote entrepreneurship

Laudable objectives: National Competition Policy

Dealing with multiplicity and complexity- Jurisdictional and regulatory overlap- Separation between policy making, operations and regulations

Law maker, licensor, equity owner, infrastructure controller and distributor

Market power asymmetries- Disparities in market growth and level of sophistication- Uneven and unequal stages of economic development

Current dynamics- Impact of disruptive technology changes- Independent regulator: each has its own focus and area

Confusing conflicts - SEBI/CCI/sector regulator- Administrative ministries: differing agenda and timelines

Sovereignty and security - Regional concerns and nationalistic ambitions- Security and governance over public interest

Easier said than done

Critical success factors

• Consistency and transparency in application and interpretation of law and regulations

• Ability for all to see the larger picture• Independence and integrity of regulators• Co-operation between centre, states and local authorities • Mindset change: competition is good for all• Consensus building across sectors • Reducing dependency on courts for resolution• Speedier enactment of forward thinking laws and policies• Implement effectively and provide level playing field• Government needs to walk the talk: saying is not enough, doing is

Red Queen effect: need to keep running faster to stay in the same place

The balancing act

• Short term pain

• Service providers

• Command and control

• Transparency

• Politics

• Nationalist sentiments

• Public interest

• Long term benefits

• Consumers

• Free market forces

• Trade secrecy

• Economics

• International ambitions

• Commercial motive

Technology for businessTechnology for business

Place, device and time shift seamless : communication, content Place, device and time shift seamless : communication, content and laws and laws

Tools : video conferencing, audio streaming, webinars, software Tools : video conferencing, audio streaming, webinars, software for documents, chat rooms, blogs for documents, chat rooms, blogs

Banking transactions, money transfers, tax payments, e Banking transactions, money transfers, tax payments, e auctions auctions

Free flow of information : use and misuseFree flow of information : use and misuse

Online trading and retailing : eBay, Amazon, Groupon, Flipkart Online trading and retailing : eBay, Amazon, Groupon, Flipkart

New business models : Google, Apple, Microsoft, Zynapse New business models : Google, Apple, Microsoft, Zynapse

Relevance of social media:: Face book, LinkedIn, Twitter Relevance of social media:: Face book, LinkedIn, Twitter

Availability and accessibility of information: overload or use Availability and accessibility of information: overload or use selectively selectively

Benefits of MCA 21, dematerialized shares, XBRL, email reports Benefits of MCA 21, dematerialized shares, XBRL, email reports

Technology tools for company Technology tools for company secretaries secretaries

Microsoft OfficeMicrosoft OfficeEmail ManagementEmail Management

Time RecordingTime RecordingDiscovery SystemsDiscovery Systems Secure Secure

emailemailDigital DictationDigital Dictation

Case ManagementCase Management Accounts Accounts / PMS/ PMS

Document ManagementDocument Management DatabaseDatabase

System IntegrationSystem IntegrationVoice RecognitionVoice Recognition

ExtranetExtranetExternal Internet ServicesExternal Internet Services Workflow / AuthorizationWorkflow / Authorization

Social NetworkingSocial Networking Knowledge ManagementKnowledge Management

Electronic ArchivingElectronic ArchivingWeb based Web based

servicesservicesPhotocopy / Printer Usage trackingPhotocopy / Printer Usage tracking HR SystemsHR Systems

IntranetsIntranetsManagement InformationManagement Information Intelligent SearchingIntelligent Searching

Billing systemsBilling systems Blogs Blogs

ConstraintsConstraints

Companies/ employees not willing To change

Package / System does not Do what you expected

Cost too much / taking too long

System is “far too Complicated”

Govt. systems don’t keep up

Not seen the expected benefits

System is unreliable / fails to Run quickly / has errors

System is “taking over” – takes longer to maintain the system than provide the service!

Quick obsolescence

System makes business Process worse not better!

Don’t know what couldBe done with system

Inadequate training I am too old to learn new stuffEveryday

Benefits of technology Benefits of technology

Technology changes an opportunity, not a threat Technology changes an opportunity, not a threat

Remote access and control : geographical location is Remote access and control : geographical location is irrelevantirrelevant

Preserving confidentiality : secure accessPreserving confidentiality : secure access

Learning tool : webinars, knowledge management, Learning tool : webinars, knowledge management, sharing information sharing information

Exchange of information & best practices at optimal costExchange of information & best practices at optimal cost

Social media has given everybody a voice and power Social media has given everybody a voice and power

Speedier work at RoC, scope for less manual intervention Speedier work at RoC, scope for less manual intervention

Access to wide international databases for practice and Access to wide international databases for practice and precedentsprecedents

Technology challenges

• Transparency Vs right to privacy

• Laws unable to keep pace with technology :always a few steps

behind

• Liability of intermediaries for on line content

• Training and updates: too frequent and vast changes

• Avoiding complexity and information overload

• Does it really bridge the digital divide or increase the difference

• Investment and change costs may be high

• Too many devices, all “smart” but complicated for ordinary user

• Use of brain power Vs computing power: creativity and innovation

Know

ledge o

f su

bje

ct &

exp

eri

ence

Expectations

Com

mun

icat

ion

skill

s

Ethical values

CS career a default optionTotal focus on

compliance

little business

judgment

Com

plia

nce

orie

nte

d

Stra

tegic a

dviso

r

& le

ader

Managing risk &

reputation riskVersatility acrossgeographies

Strong Business

orientation

Cost e

fficie

nt &

prod

uctiv

e

Legal pro

fici

ency

st

ill im

port

ant

Futu

re

Core requirement

Past

Current

InterfacesCS and in house

counsel

Board of directors

ShareholdersInternal auditAuditors

Business divisions

Marketing, R&DSupply ChainFinance, HR

External law firms & counsel

Government agencies

Courts / arbitrators

Partners, Vendors, Suppliers

Regulators MediaChamber of Commerce

Industry bodies

The “must haves”• High level of technical competence

• Clear identity & purpose: role & responsibility

• Business and customer orientation: Efficient service

• Confidence and self reliance on strength and capability

• Uses technology significantly to advantage

• Clear mandate: participative and interactive

• Understand business imperatives:

• Appreciate client requirements: practical solutions

• Structured and integrated team

• Value systems and integrity, handling conflict

• Ability to deal with coolness under crisis, thinking on feet

To be

“ Any eye on the past, astute as to

the present, peer into the future and

predict the uncertain and unknown ”

Thank youThank you