Latest news with #KotakAMC
Time of India
3 days ago
- Business
- Time of India
RBI delivers on growth, time to shift focus to structural reforms: Nilesh Shah
"It is not a bit of a surprise. It is a big surprise. After nudges in the initial power play, RBI has changed gears by front loading pro-growth measures. Both the bond market and the equity market has been positively surprised. The yields had gone down from 6.20 to 6.12 based on 50 basis point rate cut. It bounced back to 6.20 when they realised that stance has changed to neutral and again, it started coming down when the CRR cut announcement came," says Nilesh Shah , MD, Kotak AMC . In cricket parlance, he has hit two shots which is more than the run rate which was required, you talk about CRR, you talk about repo rate cut , but he has also sent a googly in terms of change of stance. How should market interpret it? Nilesh Shah: Well, after hitting two sixes, when the run rate is well under control, it is prudent to play the next ball cautiously rather than going for a third six, that is exactly what Mr Gandhi explained. RBI has frontloaded repo rate cut and liquidity measure to support growth. Now, it is time to be focusing on other parts of the economy, other parts of the banking rather than continue to give hope to the market that more rate cuts are coming. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo I wanted to have your take on the markets as well because this particular move by the RBI, the markets are rejoicing the fact because Nifty Bank, look at the move, it is more than the 600 points of jump, getting into that all-time high zone; along with that Nifty 50, it is a double century once again, near to that 25,000 mark. Yes, it has been a bit of a surprise. But which sector can actually surprise on the upside because this news flow is indeed positive for banks, NBFC, real estate, and the list is long. Nilesh Shah: So, it is not a bit of a surprise. It is a big surprise. After nudges in the initial power play, RBI has changed gears by front loading pro-growth measures. Both the bond market and the equity market has been positively surprised. The yields had gone down from 6.20 to 6.12 based on 50 basis point rate cut. It bounced back to 6.20 when they realised that stance has changed to neutral and again, it started coming down when the CRR cut announcement came. Same thing happened in the banking sector and broad market. It came down when they heard repo rate was cut by 50 basis point as it would have impacted banks NIM margin, bounced back once they realised there is CRR cut happening. Overall, both debt and equity market will be positively surprised by this front-loading of growth measures. And now, actually, I have a worry, I hope President Trump does not borrow RBI governor to manage US Fed. Help us understand the impact that you see of this surge in liquidity that will now eventually take place, the impact of that on the bond market. Do you believe the bond yield curve would flatten out because we did see a little bit of a spike coming in around 10:15 or so when the announcement was made about the surge in liquidity, where do you see the bond market headed from here? Nilesh Shah: So, the bond market's immediate reaction will be to do a parallel shift down. The short, medium, long all will come down to reflect 50 basis point rate cut adjustment. Then, the short end may come further down because of the liquidity measures from having probably adequate liquidity or maybe if I can begin there was a time when there was excessive liquidity of more than 10 lakh crore in banking system, then it became adequate liquidity, then it became deficient liquidity, then it again became adequate liquidity, and now, we are probably at the stage between RBI OMO, the dollar swap, and the RBI dividend and CRR cut about 12 lakh crore of liquidity has been imparted into the system. Clearly, when liquidity improves, the short end comes further down. The spread between 10 and 30 year is 60 basis point yesterday evening. I am sure that is likely to narrow further. Live Events So, we will see first parallel move down on yield curve, then short yield curve coming further down, and eventually long yield also, long end of the curve also coming down little bit.
Economic Times
3 days ago
- Business
- Economic Times
RBI delivers on growth, time to shift focus to structural reforms: Nilesh Shah
"It is not a bit of a surprise. It is a big surprise. After nudges in the initial power play, RBI has changed gears by front loading pro-growth measures. Both the bond market and the equity market has been positively surprised. The yields had gone down from 6.20 to 6.12 based on 50 basis point rate cut. It bounced back to 6.20 when they realised that stance has changed to neutral and again, it started coming down when the CRR cut announcement came," says Nilesh Shah, MD, Kotak AMC. ADVERTISEMENT In cricket parlance, he has hit two shots which is more than the run rate which was required, you talk about CRR, you talk about repo rate cut, but he has also sent a googly in terms of change of stance. How should market interpret it? Nilesh Shah: Well, after hitting two sixes, when the run rate is well under control, it is prudent to play the next ball cautiously rather than going for a third six, that is exactly what Mr Gandhi explained. RBI has frontloaded repo rate cut and liquidity measure to support growth. Now, it is time to be focusing on other parts of the economy, other parts of the banking rather than continue to give hope to the market that more rate cuts are coming. I wanted to have your take on the markets as well because this particular move by the RBI, the markets are rejoicing the fact because Nifty Bank, look at the move, it is more than the 600 points of jump, getting into that all-time high zone; along with that Nifty 50, it is a double century once again, near to that 25,000 mark. Yes, it has been a bit of a surprise. But which sector can actually surprise on the upside because this news flow is indeed positive for banks, NBFC, real estate, and the list is long. Nilesh Shah: So, it is not a bit of a surprise. It is a big surprise. After nudges in the initial power play, RBI has changed gears by front loading pro-growth measures. Both the bond market and the equity market has been positively surprised. The yields had gone down from 6.20 to 6.12 based on 50 basis point rate cut. It bounced back to 6.20 when they realised that stance has changed to neutral and again, it started coming down when the CRR cut announcement came. Same thing happened in the banking sector and broad market. It came down when they heard repo rate was cut by 50 basis point as it would have impacted banks NIM margin, bounced back once they realised there is CRR cut happening. Overall, both debt and equity market will be positively surprised by this front-loading of growth measures. And now, actually, I have a worry, I hope President Trump does not borrow RBI governor to manage US Fed. Help us understand the impact that you see of this surge in liquidity that will now eventually take place, the impact of that on the bond market. Do you believe the bond yield curve would flatten out because we did see a little bit of a spike coming in around 10:15 or so when the announcement was made about the surge in liquidity, where do you see the bond market headed from here? Nilesh Shah: So, the bond market's immediate reaction will be to do a parallel shift down. The short, medium, long all will come down to reflect 50 basis point rate cut adjustment. Then, the short end may come further down because of the liquidity measures from having probably adequate liquidity or maybe if I can begin there was a time when there was excessive liquidity of more than 10 lakh crore in banking system, then it became adequate liquidity, then it became deficient liquidity, then it again became adequate liquidity, and now, we are probably at the stage between RBI OMO, the dollar swap, and the RBI dividend and CRR cut about 12 lakh crore of liquidity has been imparted into the system. Clearly, when liquidity improves, the short end comes further down. The spread between 10 and 30 year is 60 basis point yesterday evening. I am sure that is likely to narrow further. So, we will see first parallel move down on yield curve, then short yield curve coming further down, and eventually long yield also, long end of the curve also coming down little bit. (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
27-05-2025
- Business
- Mint
Mutual fund mis-selling: What the first public disclosures reveal
To enhance transparency in the system, the mutual fund industry has started publishing quarterly reports of mis-selling by MF distributors and the action taken against them. A review of the statutory disclosures provided by the top 20 asset management companies (AMCs) in the country shows that only four fund houses—HDFC AMC, Nippon AMC, Kotak AMC, and Axis AMC—reported six cases of misselling by MF distributors for the January-March period. Other companies marked the field as 'NA/Nil'. "Six reports of mis-selling cases among crores of investors seem like a drop in the ocean. A huge number goes unreported. However, it's good for a start," said Kavitha Menon, RIA and founder of Probitus Wealth. Five of the six cases involved alleged unauthorised switch transactions, which involve distributors switching from one scheme to another without informing the client. This is generally done when the second scheme fetches the distributor a higher commission. When the first scheme is sold to buy the new scheme, the investor may be subject to capital gains tax. Sebi mandated that from 1 April 2025, switches from an existing scheme to an NFO will fetch the distributor the lower commission between the two schemes. Switches to the existing schemes with higher commission are still permitted. For instance, Nippon AMC reported that a distributor did an unauthorised switch of ₹12 lakh from Nippon India Large Cap Fund to Nippon India Innovation Fund. The first fund has a regular total expense ratio (TER) of 1.54%, whereas the second fund has 1.99%. Higher regular TER suggests the distributor might be getting a higher commission on the second scheme. TER is the cost that an AMC recovers for managing funds. Regular TER includes distributors' commissions, while direct plans don't include commissions. Other instances of unauthorised switches do not mention the schemes involved. All six cases of mis-selling were reported by the unitholders themselves, although complaints can be received from various sources, including AMC's Internal Monitoring & Surveillance mechanism, social media, the newspaper, another ARN holder, Sebi, and AMFI. Emails sent on 20 May to the Securities and Exchange Board of India (Sebi), the Association of Mutual Funds in India (Amfi), HDFC AMC, Nippon AMC, Kotak AMC, and Axis AMCs that reported cases of mis-selling did not elicit any response. Also Read: Why you cannot complain to Sebi about unregistered investment advisors Fake identity Kotak AMC received a complaint from a unitholder that a switch transaction of ₹90 lakh was done without their knowledge. The company's attempts to contact the AMFI registration number (ARN) holder, Reenu Choudhary, in February and September 2024 failed. ARN is a unique number given to individuals and entities who have a licence to sell mutual funds and can earn a commission. According to the report, senior officials were informed that she had shifted to a different location. Much later, the ARN holder's spouse finally picked up the officials' call and said the couple was unaware of such transaction. The couple claimed that the ARN was used by one of their neighbours who had previously worked for Yes Bank. Kotak AMC said they found that this person had left the bank. 'ARN holder has also given a written statement stating the facts," said Kotak AMC in the quarterly mis-selling report. HDFC AMC also reported an unauthorised switch transaction from the same ARN worth ₹2.1 crore. While HDFC AMC de-empanelled the ARN number, Kotak AMC suspended the ARN. The AMFI website also shows that the ARN has been terminated. AMFI lists the ARNs that are suspended or terminated on its website without giving more details. All other cases, except one by Axis AMC regarding 'unauthorised switch transactions', led to the ARN getting de-empanelled with the AMC. Axis AMC found that one of the Axis Bank employees had taken signed slips of switch transaction forms without mentioning the schemes involved. The employee was referred to the internal ethics team for disciplinary action. Emails to Axis AMC remained unanswered. Also Read: Is your mutual fund distributor letting you down? Here's how to switch Outright fraud HDFC AMC reported another case of 'misappropriation of investors' funds.' The ARN holder had shared fake screenshots of a mutual fund account statement, but the money was never received by the AMC. The case involved the misappropriation of ₹54 lakh. The ARN holder's licence has been terminated by AMFI. Questions sent to Amfi, Sebi, and the AMC asking if the client suffered any monetary loss and what was done to compensate them did not elicit any reply. 'Actions taken by AMFI include reprimand/ warning/ temporary suspension of ARN/ deactivation of ARN, or permanent cancellation of ARN and debarment from doing mutual fund business," said a letter dated 9 January, 2025, by Sebi to AMFI, seen by Mint. Many cases of misdealing or fraud by Sebi-registered investment advisors or research analysts attract fines. However, Mint could not ascertain whether any punitive action was taken against the rogue MFDs and what happened to the clients that were mentioned in the mis-selling report. AMFI website shows 37 ARNs are suspended and 27 terminated since inception. AMFI does not publicly disclose why those ARNs were suspended or terminated. There are 932 IAs and 1.73 lakh ARN holders in the country. The solution Vishranth Suresh, co-founder and CEO of Asset Plus, a platform for MF distributors, said that as the industry grows, mutual fund distributors can be held more accountable for handling people's life savings. When a registered investment advisor gives any kind of suggestion or advice to their clients, they have to follow strict record-keeping and suitability guidelines as per Sebi rules. On the other hand, MFDs are subjected to less scrutiny. For starters, Sebi IAs can charge fees from the clients, whereas MFDs can only earn through commissions from AMCs. While IAs can do complete financial planning, MFD can only give incidental advice. Incidental advice allows MFDs to recommend a curated list of MF schemes based on the client's goals, needs, and risk profile, etc. Vivek Rege, an RIA and CEO of VR Wealth Managers, said that, as per IA regulations, they need to keep a record of every advice that can later be used for an audit. 'Every time advice is given, the IA needs to show the client and keep a record (be it email, physical paper, or voice record, etc) of the rationale of the advice given and why it is suitable for that particular client. It can be: buy order, sell order, switch, SIP, SWP, STP, etc," said Rege. He added that after the client's consent is received, they can implement the advice. However, implementation is not execution. It simply means that the IA can send an execution order after the consent is received. The order finally has to be executed by the customer using OTP or a signature. Clients also choose to execute the order on their own, added Rege. In contrast, MFDs don't have to maintain any record of rationale or suitability while giving out advice. Typically, an MFD would talk to the client about the trade and execute it using OTP in the online mode or a signed form in offline mode. 'We first explain to our clients the trades we're recommending and then send a link to the order that the investor executes at their end. The execution is done by the client through a link and OTP. They see the transaction details before executing," said Amol Joshi, an MFD and founder of Plan Rupee Investment Services. However, when a client wants to invest in a scheme on their discretion (execution only), and if the MFD thinks it's not suitable for them, the latter is required to record a written consent from the client. AMFI requires MFDs to do a risk profiling to check if the investment aligns with their risk appetite, needs, and objectives, and assess the suitability/appropriateness of the MF product being recommended to clients. However, this is a one-time exercise and is not done every time a mutual fund is recommended. Once an MFD crosses a certain threshold, they are subject to an enhanced due diligence process. Such thresholds include crossing ₹100 crore in AUM, more than ₹1 crore commission received per year (across industry), commission received is more than ₹50 lakh from a single AMC or is present in more than 20 locations. 'If an MFD suggests a client shift from large caps to small caps, they should be able to explain the rationale behind it," said Vishranth, who runs a platform for MFDs and oversees more than ₹5,000 crore in assets. 'Mandatorily keeping records might be practically impossible, especially in smaller towns and cities, but some form of record keeping could be encouraged." 'Most mis-selling would happen in offline mode as the MFD might take a signature from clients without adequately informing them about the transaction. Online, at least the OTP comes, and the client needs to validate it," said Vishranth. Also Read: Sebi proposes to allow investment advisers, research analysts to charge advance fee for up to 1 year Checking entry point Qualifications of MFDs are also relaxed compared to IA. An IA needs to be at least a graduate or a postgraduate, a diploma in certain finance-related fields, or a professional degree. To become an MFD, one only needs to pass class 12 and clear the NISM VA exam. 'As the industry grows, we can move towards a stricter entry barrier (for MFDs) to maintain quality in the system. Maybe Sebi can start by making the entry barrier stricter for the top cities and slowly extend it to tier-2 and tier-3 cities," said Vishranth. Joshi of PlanRupee Investment Services said existing rules should be enforced more stringently instead of bringing in more rules. Case for MFDs over RIAs There's one scenario where regular plans (sold via MFDs) can offer a tax advantage over direct plans (via RIAs). When a regular unitholder redeems a mutual fund unit, it is net of management fees and commissions. Let's say a direct investor (via RIA) and a regular investor (via MFDs) invest ₹100, and assume there is a 1% management fee and 1% commission charged by the MFD via AMC. Assuming the investment generated 10%, the investment would become ₹110. However, when the direct investor (via RIA) redeems, a 1% management fee would have been deducted, and the investor would get capital gains of ₹9. On the contrary, when a regular investor redeems, the capital gains would be ₹8, accounting for 1% management fee plus 1% distributor commissions. The fees paid to RIA cannot be adjusted against the capital gains. 'The fees charged by RIA might be less or more than the commission paid," said Manuj Jain, co-founder of ValueMetrics Technologies. Another hurdle to moving from a mutual fund to an RIA is that a regular plan cannot be switched to a direct plan unless the unitholder redeems their fund. Selling may attract capital gains tax, which may act as a barrier while shifting from an MFD to an RIA. If one is shifting from one MFD to another, the new distributor may earn a lower commission than the other after a six-month cooling period. Also Read: AMFI says 17 mutual fund distributors earn commissions above Sebi's cap. But is the data accurate?
Mint
16-05-2025
- Business
- Mint
Recommended stocks to buy today: Top stock picks by market experts for 16 May
Two stock recommendations by MarketSmith India for 16 May ● Why it's recommended: Strategic focus on oncology and biologics, strong financial performance ● Key metrics: P/E: 76.92, 52-week high: ₹ 959.50, volume: ₹ 26.79 crore ● Technical analysis: Holding its 200 DMA for the past three days ● Risk factors: Regulatory compliance risks, debt, and liquidity risks ● Buy at: ₹ 714.9 ● Target price: ₹ 825 in three months ● Stop loss: ₹ 660 Read this | Kotak AMC targets extra ₹800 cr for new credit fund after initial ₹1,200 cr raise ● Why it's recommended: Market leadership, brand equity, strong rural & entry-level demand ● Key metrics: P/E: 27.94, 52-week high: ₹ 13,860, volume: ₹ 719.71 crore ● Technical analysis: Bullish flag pattern breakout ● Risk factors: Delayed EV strategy, margin pressure from input costs ● Buy at: ₹ 12,952 ● Target price: ₹ 14,200 in three months ● Stop loss: ₹ 12,350 Read this | FPI reforms open doors, but will foreign capital follow? Two stocks to trade, recommended by NeoTrader's Raja Venkatraman Also read: Bharti Airtel eyes growth through price hikes for high-end users Also read: Hyundai Motor India profit may take a hit in Q4 as sales remain in slow lane MarketSmith India: Trade name: William O'Neil India Pvt. Ltd; Sebi-registered research analyst registration number: INH000015543 Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
12-05-2025
- Business
- Economic Times
Who will sell in this market? Look for IPOs, OFS & QIPs; Nifty EPS seen at Rs 1,160 in FY26: Nilesh Shah
Nilesh Shah, MD, Kotak AMC, says FY25 Nifty EPS is projected around Rs 1,050. It could reach Rs 1150-1160 in FY26 and cross Rs 1300 the following year. Earnings trajectory looks positive despite uneven sector performance. Consumption in urban India is likely to improve. India is well-supported by earnings and flows. Shah further says global investors will realise how maturely India has responded and how it has put Pakistan in its place, and that should also result in some amount of lowering of geopolitical risk in Indian valuation, which means there is a chance that our valuation can get rerated. ADVERTISEMENT Where do we go from here? Indian markets of late have underperformed global markets for the right reasons. There was nervousness because of geopolitical tensions. Now that they have eased out, can we catch up with the rest of the world? Nilesh Shah: There is a reasonably good chance that we should be able to catch up on the underperformance. The March 25 quarterly earnings growths have come reasonably ahead of expectation. Now, one can argue good results come first, bad results come later, but so far so good. Second, the geopolitical tension has been reduced significantly. If at all, global investors will realise how maturely India has responded and how it has put Pakistan in its place, and that should also result in some amount of lowering of geopolitical risk in Indian valuation, which means there is a chance that our valuation can get rerated. Finally, the market needs flows to move and FPIs were buyers even when geopolitical risk was high. I am sure they would like to buy more when these risks are reduced. So, from a fundamental point of view, from a flow point of view, the Indian market is well supported and we should see some amount of catchup in the Indian market in the days to come. One is the sentiment and second is the reality check which is earnings, valuations, and the scope of macro improvement. So, once the excitement about what is happening on the tariff front, what is happening on the border front gets adjusted, then what about the reality of the market which is centred around earnings and valuations? Where do we stand on that front? Nilesh Shah: This quarter we should be having Nifty 50 EPS at anywhere between Rs 260 and Rs 275, and that should take us somewhere around 1050 Nifty EPS for FY25. In FY26, we could be somewhere around 1150, 1160 Nifty 50 EPS and year after that, we should be crossing somewhere around 1300. So, the earning trajectory looks quite reasonably solid. There are sectors which are doing well. There are sectors which are not doing well. But overall, the earnings trajectory looks on the positive side. Undoubtedly, we have areas to cover, for example, private sector investment, but consumption which was a little bit on the subdued side in urban India, is likely to get supported. Overall, my feeling is that both from an earnings point of view as well as flow point of view India is well supported. Our valuation to a great extent discounts that growth and hence the returns will be moderate. ADVERTISEMENT ICICI Bank, HDFC Bank, and BEL are some of the top holdings of Kotak. FIIs are back, DIIs are buying, HNI are feeling left out and retail is saying we should not cancel our SIPs. That means there's no seller in the market? Nilesh Shah: The selling will have to come from the IPOs and OFS and QIPs. There is a large lot of promoter lock-in that is getting expired or which will become free. My feeling is that at a price, sellers will emerge and at a price, buyers will emerge and that is how the market functions. Undoubtedly, from the flow point of view, institutional and retail investors are likely to be buyers and hence supply will come from the primary or secondary issuances from the promoters' stable. What do you make of the FIIs coming back? Is now the time for FIIs making a strong comeback and are they here to stay? While the markets were a little choppy and volatile, the FIIs did turn positive in the month gone by and in this month itself, the majority of their action is on the buying side. Nilesh Shah: In March, we saw passive funds turning buyers. April was largely passive funds continuing to buy. There was one particular day when Rs 11,000 crore worth of FPI buying came, and that was primarily driven by passive flows. Active funds started buying in May and despite this geopolitical risk they continued to buy. My feeling is that FPIs will be buyers of Indian equity. Of course, they are here to make money. They will look at valuation. They will look at potential return trajectory. But my feeling is that ultimately, they will come back. ADVERTISEMENT You have been bullish on IT. You were bullish on cement and consumers. Has that view changed after numbers and what is happening in the world? Nilesh Shah: On IT, our call has not worked yet. We were probably a little ahead of getting into the IT sector. The commentary as well as the results are a little bit in line with market expectation or below market expectation. We think there is no downside in the IT sector right now because the dividend yield is between 2% to 3%. But undoubtedly the upside is also missing right now as there is no clarity about the future. The confidence about future volume growth, future margin is not there and hence I do not see it sector outperforming the market in the near term. As an institutional investor, we have to catch a falling knife, otherwise we would not get the quantity I have to accumulate in this period of underperformance on cement. ADVERTISEMENT Clearly, the March 25 quarter, thanks to government order and government spending on infrastructure, was quite a record quarter in terms of volume. We expect that focus to continue going forward. Consumer is one sector where we believe there is a reasonable highway. The Rs 1 lakh crore tax cuts given to taxpayers will be effective this year and thereafter. There is a potential petrol-diesel price cut as international crude prices have come down. There is also reduction in EMI burden as interest rates have come down by half a percent and it can come down by more and finally, somewhere in 2027, two years down the line, 8th Pay Commission will put money in the pockets of government employees. Put together, the consumption sector, especially the consumer discretionary sector should benefit from income tax cuts, EMI burden reduction, potential petrol-diesel price cuts, and finally 8th Pay Commission recommendations. ADVERTISEMENT Are banks looking slightly overbought because everyone is saying buy banks. By the way your top holdings are also banks. Nilesh Shah: Our top holdings are banks because index is heavyweight towards the banking sector, but we are not overweight banking sector as a whole. We are overweight private banks, underweight public sector banks, and overall marginally underweight banking sector. Now, generally experiences have taught that consensus could go wrong and today as you very correctly mentioned banks was the favourite consensus and it has worked out also. Going forward, it will be a stock-specific game. Banks which have a good liability franchise will do well and banks which have good credit culture will do well. Ultimately banking is a business where you try to earn two rupees or three rupees by putting Rs 100 at risk and hence getting it at the cheapest rate and lending it more securely is very critical. Banking is a business which tells us that return of principal is more important than return on principal. The other thing that I wanted to understand was this whole debate that is going on that India will be a beneficiary of China plus one, what these global brokerages are highlighting that given the tariff tantrums and the likely implication on China's GDP, India could stand to benefit out of this. How do you read which sectors could be the key to watch out for. Nilesh Shah: US and China are reaching out to some sort of agreement on trade that will help them reduce their deficit with China. Undoubtedly, China is the global manufacturing hub. Their speed of execution, their cost of manufacturing is very competitive and we have to learn a lot from them. In mobile phones, we have been able to create a viable mechanism. In generic medicines, we have been able to create a viable alternative. But we need to replicate this in many sectors. The most important thing for India to capture China plus one is to focus on ease of doing business. We have improved the ease of doing business to a great extent. We have built infrastructure, but we still have to increase the speed of execution. We really need to empower our entrepreneurs as they are busy tackling opportunities rather than worrying about compliance and other regulatory burdens. So, we have an opportunity, but I cannot say that we have already captured it. We have a lot of work to do before we can become competitive to China. In our defence equipment, we have shown that we are second to none. Our missiles have shown that it can penetrate and it cannot be stopped by any other system in the world. So, clearly, there is capability, there is talent. We need to create an ecosystem so that we can go and capture China plus one. The Indo-UK FTA does create opportunities for our ready-made government industry. It does create opportunities for our electricals and electronics industry. The US is a far bigger market than the UK and there will be many more opportunities depending upon how the FTA has been negotiated.
