COBCAM 2017 Inauguration Ceremony

The Inaugural Ceremony of COBCAM 2017 began with the ceremonial lighting of the lamp by the Director, Dr. Madhu Veera Raghavan, Admissions Chair, Professor Aditya Mohan Jadhav, BKFS Representative Mr. Dhanyakumar Malali and the Key Note Speaker of COBCAM 2017, Mr. Deepak Reddy, Group Head HR, Bajaj Finserv.

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Professor Aditya Mohan Jadhav emphasized the grounded industrial exposure the students of TAPMI get by the very structure of the curriculum. Dr. Madhu Veera Raghavan opened COBCAM 2017 by sharing his dream for TAPMI to be one of the top 10 Business Schools in India and for BKFS students to play an integral role in the financial services sector. He stressed on continuous revival and revamping of the curriculum to keep in constant touch with the changes in the industry.

The Key Speaker, Mr. Deepak Reddy refreshed on some of his fondest memories and biggest learnings as a TAPMI student. He urged the students to learn as much as possible in as many diverse sectors and fields. He noted the change in the perception of the consumers towards the banking industry and how that the most important factors that influence the success in the banking service sector are customer’s ease of obtaining information and customer fulfillment.

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He praised the change from the traditional banking practices to modern digitized methods which vastly reduced the processing speed. While this has greatly increased customer satisfaction, it has simultaneously reduced employment requirements; replacing man with machine. A case in point, he reminded the students that the financial sector is highly volatile with uncertainty around every turn.

On what he expects from students and future leaders, he demands that we find our purpose in life; a field where we can create an impact and lead change. He also stressed the importance of being socially aware and developing capabilities to collaborate with other individuals. He urged the students to work hard and learn continuously.

The insightful and informative speech set the tone for an evening of learning at COBCAM 2017.

MANTHAN 2017: DAY 1: Inaugural Ceremony

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The inauguration ceremony of Manthan 2017, the annual budget conclave of T. A. Pai Management Institute, Manipal was held today. The theme for this year’s event is “Evaluate Empower Exceed”. It started off with an insightful address to students by the Director-in-chief, Prof. Gururaj Kidiyoor and was followed by an informative speech by Prof. Madhu Veeraraghavan. He spoke about the TAPMI Finance Lab and the intent behind establishing it. It was started in the year 2013 and was established with a vision to position TAPMI as a leader in Banking and Finance education in the country. This goal is continuously pursued by training students in real time trading and investments in one of the finest finance labs in India today.

TAPMI has always strived hard to make its finance courses industry relevant and SMIC is one such course. Students today are neither interested in learning only theories, nor they want to limit themselves to writing papers and journals. They want real world experiences and this is explicitly the reason why SMIC was introduced as a course. SMIC is a course specially designed for students to train them in the art of investment. Students learn the fundamentals of trading and are provided real money for investing. This differentiates TAPMI from other colleges where trading happens only through simulations and lack real-time experience. With the vision to bridge the gap between theory and practice, SMIC provides hands-on experience to the students for growing and developing to become successful investors.

The ceremony was followed by the SMIC presentations. It was indeed an extremely proud day for TAPMI to celebrate and demonstrate excellence through the 11 teams who worked really hard for days and presented their portfolios before the industry experts.  The teams comprised of both PGDM and BKFS students. The students got an opportunity to act as real-world investors and present their investment ideas before industry experts. The judges reviewed each team’s work and provided suggestions after finding out weak areas in each plan. The feedback from the judges was a great value addition for the teams and helped them identify areas of improvement.

The Union Budget 2017-18: A Brief Overview

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The Union Budget 2017-18 was unique and historic in many ways. For starters, it was presented on a much earlier date of 1st February as opposed to the usual date of 1st March. Also, the Railway Budget was incorporated into the General Budget. On the backdrop of various Macroeconomic and Geo-Political events such as demonetization, US Presidential Elections etc. the Q3 YoY GDP took a hit. CRISIL has lowered the country’s GDP growth forecast to 6.9% for 2017.

Therefore, the Union Budget 2017-18 had a huge role to play in normalizing and revival of the growth of the Indian economy.

Following are the major points that have been covered in the budget:

  • In the last 2.5 years, the administration has moved from discretionary and favoritism based to systematic and transparency based
  • Infrastructure sector got a big boost with a total fund allocation of Rs.3.96 lakh Cr with a strong focus on the Railways (Rs.1.31 lakh Cr) and Road network development
  • The Budget proposed to scrap Foreign Investment Promotion Board(FIPB) in 2017-18 and further liberalize the FDI policy
  • Rural economy gets a boost. Allocation for MNREGA hiked to Rs.48,000 crore; 100% rural electrification by May, 2018; Rs.40,000 crores allocated to irrigation funds
  • Tax rates slashed to 5% for those within the income bracket of 2.5 to 5 lakh rupees. 10% additional surcharge levied on those individuals whose income lies between Rs.50 lakh to Rs1 crore. Minimum alternative tax reduced to 25% for companies with sub 50 crore revenue
  • In a move to curb black money, maximum cash transaction will be capped at Rs.3 lakh. Funding to political parties in terms of cash has been capped at Rs.2000. Any donations above this would have to be done via digital or cheque modes
  • Proposed to create a Payments Regulatory Board in the Reserve Bank of India by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems
  • FRBM Committee has recommended 3% fiscal deficit for the next three years, keeping in mind the sustainable debt target and need for public investment and Govt. is committed to achieve that
  • In order to make MSME companies more viable, income tax for companies with annual turnover less than Rs.50 crore is reduced to 25%
  • Utilize the Head Post Offices as front offices for rendering passport services

30th Edition: Atharva

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Atharva– the 30th installment took off on the 13th of Januray in T. A. Pai Management Institute, Manipal. It provides a platform for young budding managers to showcase their talents. This business school fest not only includes some rigorous competitions to test the mettle of the competitors, it also saw various industry stalwarts interacting with the students. Mr Gururaj Kidiyoor, Director, T A Pai Management Institute, and our honourable chief guest, Mr Denny Joseph, Director, KPMG Global Services, graced the inaugural ceremony with their presence.

The first day saw the qualifying rounds for Sankalp (the business plan competition), sHRishti (showcasing talents in hiring, training and retaining employees), Infinity (showcasing knowledge and talent in the analysis of Mergers and Acquisitions) and Make Your Mark (exhibiting competence in the field of marketing). The day concluded with Vibes, the inter-collegiate dance competition where TAPMI emerged as the winner. It was followed by the talent show competition Blaze where awards were given to Mr and Ms Blaze.

The next day was no respite for the students. As competitors from TAPMI, IMI New Delhi, IFMR, KJ SIMR and SIBM fought for the top spots, the events got even more brutal. The students had the opportunity to interact with Mr Bharat Dave, Manager, BSE who took a session on “Overview of Security Markets”. He explained position monitoring, circuit filters and surveillance system present in BSE to protect market participants. He concluded by saying you can become a millionaire and billionaire if you follow the rules and be a disciplined investor. The day continued with Run for a Cause, a marathon organised to raise funds for the underprivileged students of Academy School. Students from various colleges around Manipal and from T A Pai Management Institute participated in this generous cause. TAPMI’s in-house band, YTBN (Yet to be Named) brought this hectic day to a conclusion. They performed to various melodies across genres. It kept the students engaged and recreated the lively environment in the college.

The event reached a crescendo with the third day. The competitions witnessing an intense final with teams going head to head for the top spot. Xpressions was the in-house competitions for the students of TAPMI. They included Khoj (treasure hunt) and Point and Shoot (Counter Strike Competition), for the students to have some fun contention. In the valedictory ceremony, all the top teams were given their rewards after 3 intense days of battling it out. Evening saw the event Libaaz, the fashion show competition. The glamorous event was the perfect ending to the 30th installment of Atharva.

Day 2: Atharva 2017: Lecture on ‘Overview of Security Markets’ by Mr. Bharat Dave, Manager, BSE

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In an informative session, Mr. Bharat Dave began by talking about the history of the 140-year-old Bombay Stock Exchange. He said it is India’s fastest exchange with 6 microsecond response time and highlighted the technology, products, and advantages of BSE.

The exchange can be utilized to earn returns from idle resources, beat inflation, reach financial goals and make provisions for an uncertain future. He explained how company, industry, and economy related news affect the stock market. He went on to teach the students of TAPMI some principles of safe investments which are as follows:

–    Diversify your investment into different sectors to generate wealth as per your goals

–    Don’t be greedy, have faith and patience

–    Avoid penny stocks

He explained position monitoring, circuit filters and surveillance system present in BSE to protect market participants. He further detailed the complaint redressal system against listed companies and trading members. The quasi-judicial mechanism in place ensures arbitrators appointed must resolve the issues in 6 months.

A recent initiative by BSE is the SME platform where currently 161 SME companies listed, benefits companies to access funds and generate visibility. Some of the investment strategies shared by him were regarding Systematic Investment Plan (SIP) and Systematic Transfer Plan (STP).

He concluded by saying you can become a millionaire and billionaire if you follow the rules and be a disciplined investor.

 

Day 5: ‘Heuristics in Modelling choice’ – Prof. Konstantinos Katsikopoulos, Max Planck Institute for Human Development, Germany

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This lecture discussed the prescriptive approach for decision making through the techniques of fast & frugal trees. This was demonstrated through two cases in the lecture. First, we addressed the question of whether the possibility of flagging banks at the risk of failing is reasonable. Using data, there was an improvisation on an existing tree by Aihman et al by including threshold values. Further, the logit models were discussed along with F&F models. It was also observed that the logit models were better than the F&F trees in terms of hit rate & false alarms. However, with less data, the results were reversed. F&F models are found to be better than the logit models.

Secondly, The case of NATO checkpoints in Afghanistan saw seven suicide attacks that caused a considerable number of civilian casualties. The idea here was to develop an F&F tree to minimise the casualties. Prof. Konstantinos explained that using a reasonably simple F&F tree, the number of casualties could have been possibly reduced by 40%. This was an interesting example that could be applied to a real life scenario.

Bounded Rationality, Day-4: ‘The Role of Empathy in Altruistic Behaviour: Evidence from Sequential Dictator Games’ – Prof.Sujoy Chakravarty, Professor (Economics), Jawaharlal Nehru University

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Prof. Sujoy Chakravarty, Professor of Economics at Jawaharlal Nehru University spoke about “The role of empathy in altruistic behaviour: Evidence from sequential dictator games.” He said that economics is a field that isn’t hijacked by crazy people, it is what we have. Even when a lot of things seem. To introduce the topic he differentiated between selfish and non-selfish motive. When it comes to warm glow or altruism, these are non-selfish behaviour. Whereas, reciprocity is a selfish behaviour but indirect reciprocity is more dependent on empathy and could be fuelled by empathy.

Prof. Chakravarty jokingly remarked that reciprocity is the oil that greases the wheel of capitalism. The concept specifies that an individual will be generous to another individual only when that individual has been good to him before. He talks about three types of reciprocity: downwards, upwards and indirect. He explained that in downstream reciprocity, “B helps A, C observes B. as a result C is more generous to B.” Whereas, in upstream reciprocity, “A helps B. B is more generous to C if has been generous to B.” But according to him, indirect reciprocity functions differently, it leads to an individual helping another one who has not interacted with him nor is there a chance of interacting with him in the future. According to Prof. Chakravarty, in indirect reciprocity “A helps B, this observed by C.  C will behave generously with B if A hasn’t.” In this case B gets two chances to play this game. C’s action will act as a compensation for A’s action.

Prof. Chakravarty has conducted his research on a large sample. He told the audience about the methodology of the study and how he has come to the conclusion of his research. He said the control conditions are empathy, randomness and information. His work is still underway and he said that he is still finding faults in his own research and trying to tease out other alternatives. He welcomed the audience to critique his work. It was an enriching and learning experience to go through the entire process o how the research is growing.