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Arthanomics 2006: Annual Finance Seminar Held at IIM K The Indian Institute of Management, Kozhikode, organized the 2006 edition of its Annual Finance Seminar, Arthanomics, at its campus in Calicut, Kerala, on the 14th and 15th of January. The theme of the seminar was "Towards Mature Financial Markets - The Indian Transition". The seminar was a big success, with wide participation from both students and corporates. Mr. M. L. Jain, AGM - Kerala Region, Bank of Baroda, who was the chief guest, inaugurated the seminar. In his inaugural address, he emphasized that there was a dire need for young managers if India's high-growth trajectory was to be maintained and taken further. For that, it was necessary to overcome fear and break status quo. He stressed that the country's growth has to reach the grass-roots also, so it was necessary to focus on social, not just economic growth. The event commenced with a team from NCDEX conducting a three-hour workshop on commodities and derivatives trading. The workshop imparted knowledge to the participants regarding the commodity markets in India, their evolution, product conceptualization, design and contract specifications, risk mitigants and settlement processes. It was supported by a demo of an NCDEX trading terminal to view live action on the quotes placed by the market players. This workshop was especially apt as a Bull Run is widely expected in the commodities space. Mr. Manish Gupta, Head, Structured Trade, Citibank, then addressed the participants. He mentioned the various ways in which financial corporations provide finance through structured trade instruments at every step of the supply chain in all industries. The ways in which these instruments are applied were mentioned, such as factoring, forfaiting, insurance, and ECA (External Credit Agency) guarantees. Then he discussed Commodity Trade Financing (CTF) and how the old regulations that restricted lending to commodity traders were no longer viable in today's scenario. He gave an overview of the new paradigm of lending, where the bank almost entirely mitigates the borrowing company's risk, by paying directly to the borrower's suppliers, and receiving payments from its buyers.
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