BNP Paribas
AST talks to Viraj Kulkarni of BNP Paribas about his path through custody, from India to Switzerland and back
BNP Paribas Securities Services announced in May that Viraj Kulkarni would serve as head of securities services in India. It said that the former J.P. Morgan employee would drive its custody business activities in the Indian market.
On top of being responsible for custody, clearing, transfer agency and domestic fund services for buy- and sell-side institutions, Kulkarni’s other duties include animating BNP Paribas Securities Services’s strategy in the country as part of its wider Asia Pacific growth plan, a key region for the custodian where it has experienced double-digit growth in the past three years.
Kulkarni has more than two decades of experience in financial services, including a stint as head of Citibank Securities Services in India and Switzerland. AST talks to him about regional differences, the ‘reanimation’ strategy, and what’s in the offing for BNP Paribas Securities Services.
How would you compare custody out of India and Switzerland?
The business, though similar in service, is quite different. Switzerland has greater STP (straight through processing), and more products. It’s a T+3 market with easy entry into market, and it also follows the gross settlement process. India is a T+2 market, follows the netting process and has multiple intermediaries (two exchanges, two clearing corporations, two depositories, and so on). The account set-up time is relatively longer, and the number of securities accounts in India is to be held at a beneficiary level, affording better investor protection. India ranks second in the world on the number of accounts.
What are BNP Paribas Securities Services’s primary business activities in the Indian market as a custodian?
BNP Paribas Securities Services is a full service provider offering securities clearing (cash equities, bonds as well as listed derivatives), asset servicing, FX services, banking facilities and tax support services to FIIs (foreign institutional investors) and others. For local market clients, we are presently the only custodian providing cash management, securities services, and fund accounting, registrar and transfer agency services, together with Sundaram BNP Paribas.
Are you planning to make any changes to operations?
BNP Paribas Securities services in India follows the global model, ensuring that clients experience the same services as they get in other markets. Additionally, we’re continually customising our services to ensure that they deliver best-in-class services to our clients investing in India. We have also increased our market advocacy by being the first to host an India roundtable for FII clients. We have also launched our local custody business for domestic clients, and we are among the first to release an FAQ for QFIs (qualified foreign investors). We plan to release many more initiatives in the near future.
You have been charged with animating BNP Paribas Securities Services’s strategy in India. What is the aim of this strategy?
Our aspirations are to enable our clients to leverage the presence of BNP Paribas Securities Services India to grow their footprints. We proactively support foreign institutions investing into India, as well as Indian institutions growing their business domestically or offshore. The combination of local expertise and a connection to our innovation capabilities allows our clients to convert complexity into growth (for example, account set-up, cross margining, and so on).
