Xavier Institute of Management, Bhubaneswar

Stay Hungry Stay Foolish… An Insight To The Reality...
Says U.K Sinha


 

"Stay Hungry Stay Foolish"....these were the words delivered by Apple CEO, Steve Jobs to inspire young management students in his famous speech in Stanford University. These were the same inspiring words delivered by UTI Asset Management CMD, U.K Sinha to inspire the bright young students in Xavier's Institute of Management, Bhubaneswar in their inauguration ceremony of an initiative called Insight. Insight is an initiative taken by the students of XIMB to know the realities of business from people who have actually faced them and have emerged as true leaders in the Indian business community. The initiative aspires to invite prominent leaders from various corporate houses for an insightful expert-student interaction.

To the pleasure of the  students, the topic chosen by Mr. U.K Sinha was "Capital Market and UTI". Capital market, the in thing for this generation definitely attracts a lot of attention from the bright management students. He initiated the discussion with an emphasis on leadership being the fundamental requisite for any corporate to excel. He pointed out that Capacity to work in competitive environment, Innovation, Team membership and Integrity are the four pillars on which an effective leader rests. He then briefed the way Indian Capital Market has changed post liberalization. Deregulation of interest rate, dematerialization of stock exchange and formation of Securities and Exchange Board of India has helped the creation of a conducive policy environment for investors. The result of this liberalization is now evident from the fact that both NSE and BSE rank number three and five in the world respectively in terms of volume of transactions.

He also reckoned several other reasons supporting the depth of the Indian capital market and the fallacies involved with it. India is being recognized as one of the hotspots for FII investment across the globe. This investment was compared by him with the FII investment received by China, light was also thrown on the dismal state of the Chinese legal and banking system and how India as compared to China has all big names in its list of investors. Recently the biggest pension fund, CALPERS, which is also the big investors in the equity market, entered India which has further boosted the FIIs confidence since CALPERS rank high in the list of conservative investors. Mr. Sinha then moved this discussion to the state of Mutual Fund Industry in India. He stated one of the major drawbacks of this industry is the narrow focus of the players. Having only metro citizen as their target customer, the industry is actually missing on the huge market offered in small cities and rural areas. 

Having talked about the leaps and bounds taken by the Indian capital market he then discussed about his own organization, UTI Asset Management. Briefly touching upon the history of UTI, he also covered the origin of UTI act, 1964. He also accepted the downtrend faced by UTI due to the US-64 scam and the way the company has bounced back regaining its market leader position. Apart from others, one major point covered by him was the activities planned by UTI for the future. One of the major plan includes opening branches is some 300 small city and rural area to tap the high potential, non-explored market in India for Mutual funds.

The event was a huge success with students actively participating in the question and answer session at the end of the discussion. The students' propensity to learn by was well matched by Mr. Sinha's willingness to deliver. Insight proved its worth and effectiveness amongst the whole batch as they led through an intellectually stimulating and interactive session.
 

Source: By E-mail (July 5, 2006)

published on IndianMBA.com on July 6, 2006

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