SBI-SG is a “Consistent Outperformer”. How do you ensure this excellence year after year?

At SBI-SG Global Securities Services Pvt Ltd, we have redesigned our vision, mission and core values around client-centricity. All our internal processes and strategies starting from business development, client onboarding, digitisation initiatives, to client risk management and market advocacy, are restated with this core value at the centre. During the current year, we have implemented our Client Relationship Management Solution and we are actively on-boarding clients on a web-custody platform for enhanced value proposition while continuing to handhold them through other channels.

As we embark on increased level of digitisation and end-to-end automation of processes, it becomes very critical to simultaneously enhance information security systems.

As we focus on the same, we thought it fit to maintain the quality standards and obtained ISO 9001 and ISO 27001 certifications with appropriate procedures and documentation standards in place. We have also focussed on client out-reach programs through webinars on relevant topics by industry experts and enhanced our visibility on social media.

We have upgraded our website to a new design and improved our daily newsletter “Market watch”, which provides insights into news and statistics relating to Indian capital markets. We also participate and contribute to market advocacy discussions and present relevant feedback for developing regulations and market practices to the regulators and market infrastructure companies both directly and through appropriate fora. We are very thankful to our clients who received our initiatives well and have given us higher scores this year and making us a “Global Outperformer”, “Market Outperformer” and “Consistent in Outperformance”.

Based on India’s experience of T+1 settlement, what is your advice for peers in other markets in this regard?

Despite apprehensions from several quarters and long winding discussions in the preparatory stages, particularly on critical matters like, instruction timelines, trade confirmation timelines, funding (pre-funding) of FX etc., the roll out of T+1 in India has been very smooth. Yes, it meant re-configuring our systems, applications and employee work hours, but considering the larger benefits that T+1 entails, particularly to the investors in terms of efficient deployment of their capital, moving to T+1 is accepted by all stakeholders.

Extensive deliberations among custodians, clients, brokers, banks, exchanges, clearing corporations and regulators led to moving the instruction timeline from T day (as initially proposed) to early morning on T+1. This avoided pre-funding which was anticipated to be the roadblock. Advice to peers: take a wholistic approach and ensure proper coordination amongst all the market intermediaries.

How have the Indian markets performed as an investment destination?

India’s capital markets have seen significant growth over the past decade. India became the fifth largest in the world by market capitalisation during 2022, though has slipped to seventh position in the recent bear run.

The F&O volumes have grown exponentially. Stock index options, which account for the highest share (41.8%) of derivatives contracts, recorded the highest YoY increase in volumes (117.4%) of all product lines in 2022. Currency options is another product line which recorded a three-digit YoY increase.

The Indian private equity and venture capital segment attracted around USD 56 billion from 1,271 deals in 2022. There were 248 exit deals in 2022 amounting to USD 18 billion. Exits via open market were most prominent among other exit types. This is despite global headwinds like geopolitical conflict in Ukraine impacting supply chains, rising inflation and interest rate hikes.

The AIF market in India is a space to focus on and is attracting significant foreign inflows. SBI-SG is synergising with SBI to help fund managers with forex/ funding/ transaction banking, custody and fund administration services.