FINANCE:

CAREER IN ECONOMICS - Dr.M.M. Goel Economics is about choice; taking decisions in one's best interests given the constraints imposed by income, costs and time. It analyses how people, firms and governments obtain money and how their spending influence the production and distribution of goods and services. It emphasizes people's activities as they use their environment to produce goods and services and distribute them. Economists study how a society distributes scarce resources, such as land, labour, raw materials, and machinery, to produce goods and services. They conduct research, collect and analyze data, monitor economic trends, and develop forecasts. They research issues such as energy costs, inflation, interest rates, exchange rates, business cycles, taxes or employ-ment levels. Economists devise methods and procedures for obtaining the data. For example, sampling techniques may be used to conduct a survey and mathematical modeling techniques may be used to develop forecasts. Preparing reports, including tables and charts, on research results is an important part of an economist's job. The various specialization in economics are : Agricultural Economics, Financial Economics, Labour Economics, Industrial Economics, International Economics, Econo-metrics, Development Economics, Economics of Human Resource Development, Health Economics, Rural Economics and Development and Business Economics. Business Economics course is at present offered by 15 universities leading to Master of Business Economics or degree in MA in Business Economics. Various universities offer BA (Honours) in Economics to those who have had Mathematics at plus two level. BA and B.Com courses are available in almost all the universities. BBA or BBS is available in most of the management institutes. Also, MA, M.Phil and PhD in Economics are available in most of the universities. Various universities offer MA in Economics through correspondence or distance education system. A course in Economics opens career options in government agencies, business firms, non-profit organizations, and academic institutions. Some of the graduates enter the accountancy profession and some find employment as managers and administrators in market research, advertising, sales and personnel. Newspapers provide econo-mics graduates to write reports on economic and business events. The Institute of Applied Manpower Research, New Delhi; Institute of Economic Growth, New Delhi, National Council of Applied Economic Research, New Delhi and Indian Council of Social Science Research offer ample job opportunities to economists. Financial institutions like the Reserve Bank of India, private and foreign banks and insurance companies offer good openings to postgraduate degree holders in economics. UPSC conducts Indian Economic Service Examination every year. It is open to graduates in Economics in the age group of 21 years to 30 years. Employment of economists is concentrated in large cities. Some work abroad for companies with major international operations, for Government agencies, and for international organizations, such as the WorId Bank, International Monetary Fund, and United Nations. Economists are concerned with practical applications of economic policy and work for a variety of organizations. Economists working for corporations are involved primarily in micro economic issues, such as forecasting consumer demand and sales of the firm's products. Some analyze their competitors' growth and market share and advise their company on how to handle the competition. Others monitor legislation passed by the Government, such as environmental and worker safety regulations, and assess its impact on their business. Corporations with many international branches or subsidiaries might employ economists to monitor the economic situations in countries where they do business or to provide a risk assessment of a country into which the

company might expand. To work in economic consulting or research firms, economists may perform the same tasks as econo-mists working for corporations. Another large employer of economists is the Government. Economists in the Central Government and State Governments administer most of the surveys and collect economic data. The two important data collection agencies of the Central Government namely National Sample Survey Organization (NSSO) and Central Statistical Organization (CSO) provide ample employment opportunities from time to time. A Master's or Ph.D. degree in economics is required for many jobs in privatesector and for advancement to more responsible positions. Whether working in government, industry, research organizations, or consulting firms, economists with a bachelor's degree usually qualify for most entry-level positions as a research assistant, administrative or management trainees or for various sales jobs. A master's degree usually is required to qualify for more responsible research and administrative positions. Many business, research and consulting firms and government agencies seek individuals who have strong computer and quantitative skills and can perform complex research. A Ph.D. is necessary for top economist positions in many organizations. Many corporation and government executives are required to have a strong background in economics. In addition to the previously mentioned jobs, economists hold faculty positions in colleges and universities. As firms increasingly employ workers to perform more specialized tasks, the best opportunities for individuals with backgrounds in economics are expected to be in positions that have titles other than economist. Some examples of job titles often held by those with an economics background are financial analyst, market analyst, public policy consultant, researcher or research assistant, and econometrician. A Master's or Ph.D. degree, along with a strong background in economic theory, mathematics, statistics, and econometrics, provides the basis for acquiring any speciality within the economics field. Economists who are skilled in quantitative techniques and their application to economic modeling and forecasting, and having good communications skills can get better job opportunities. Graduates with bachelor's degrees can find jobs in industry and business as management or sales trainees or as administrative assistants. (The author is Professor of Economics, Kurukshetra University, Kurukshetra) CAREER OPPORTUNITIES IN INSURANCE INDUSTRY Vepa Kamesam The insurance industry was opened-up to the private sector five years ago. The Central Government had put in place the frame-work for regulation of the insurance business by establishing, under an Act of Parliament, the Insurance Regulatory and Development Authority of India (IRDA). New insurance companies are being set-up by scheduled banks and corporates. The insurance industry has seen a growth of 21.0% during the year 2005-06. Presently, there are 31 companies registered with the IRDA and out of these, 16 are in the business of Life Insurance and 15 in General Insurance. These companies have penetrated into the nook and coner of the country by opening their branch offices. A fierce competition amongst the players is being witnessed. Recognising the need in everyday life, insurance business has become the talk of the day, be it for insurer or insured - both individuals and institutions. The wide range of insurance products being launched by each of the players to cater to the preferences of the individuals as well as corporates and the innovative marketing strategies adopted by each of them will stand testimony to the trend. Thus, with the fast emerging scenario of growth in the insurance sector coupled with a steady demand for professional managers, a great opportunity is

thrown up to those youngsters seeking a bright career in the insurance field. In order to develop a professional cadre of insurers and risk managers, the IRDA took the initiative to impart insurance education to those candidates intending to pursue career in insurance business by establishing, in collaboration with the Government of Andhra Pradesh, the Institute of Insurance and Risk Management (IIRM) at Hyderabad. IIRM offers one year two semesters International Post Graduate Diploma Course in Life Insurance, General Insurance and Risk Management. The entry criteria for admission to these courses is that a candidate must have secured minimum 50% marks in the graduation, in any subject. Thereafter, an Interview Committee with 3 Professors and the Managing Director of IIRM conduct interview to assess the candidate's potential, interests and knowledge in insurance and risk management. Admission is granted to successful candidates to this one year Post Graduate Diploma Course. Even, professionals with BE, CA, MBA qualifications and Post Graduates from Science, Commerce and Arts stream are seeking admission to the courses conducted by the IIRM. The first batch of students of IIRM completed their studies in the academic year 2004-05 and the 2nd batch in 2005-06. As many as 15-private insurance companies and 2-broking firms and 1-nationalised bank came to the campus for recruiting the students of IIRM. All the students who passed out from IIRM have got decent jobs in reputed organizations, in the salary range of Rs.2.50 lakhs to Rs.4.50 lakhs per annum. Cent percent campus placements have been secured for the two batches. The 3rd batch of 56 students pursuing the courses during the academic year 2006-07 come from various parts of India, with broad based educational qualifications and clearly focused to become excellent Insurance Professionals and Risk Managers. In the current batch of 56 students, the distribution in the various segments is. Under the Life Insurance programme 16, General Insurance 27 and Risk Management 13 students. Interestingly, nearly 50 percent of them are girlstudents. At the end of the one year course, the IPGDI Diploma is awarded. It is expected that with the 3rd stream of Risk Management having been started, they will also find employment in the corporate world in addition to insurance companies, banks and broking firms. The Chartered Insurance Institute, London (CII), which is the well recognized and oldest professional body in the insurance sector has accorded accreditation to the IIRM's Diploma Courses. While all the 10 subjects taught in the Institute carry the accreditation of CII, it is their policy to grant accreditation to the students for a maximum of 7 subjects, thereby necessitating the students to take additional 3 subjects, examinations for which are conducted by CII, twice in a year in April and October to entitle the diploma holders to become an Associate of the CII, London. IIRM has become an approved Examination Centre for the CII, London from October 2006 to facilitate candidates in this Region. The Associate of CII, London is a globally portable professional qualification, which enables the diploma holders to practice in any market overseas and is a recognition of a professional qualification. Some of those students who have qualified with ACII and are very serious to pursue academics, they enjoy some exemptions for the M.Sc insurance course of the City University in London. A similar accreditation for some of the subjects being taught in the Risk Management (started this

year) has also been received from CII, London. IIRM is actively involved in conducting programmes of shortterm duration, the Bancassurance programme for the Banking industry and other Certificate programmes in Risk Management for the Corporates. IIRM also undertakes research in topics predetermined by the IRDA, which are considered relevant for the growth of insurance industry in India on sound lines. For the academic year 2007-08, IIRM has since opened Registration. Candidates can visit the website, www.iirmworld.org.in for complete details and download the application form for registration. The course fees is Rs.1.75 lakhs, payable up-front. Scheduled banks liberally grant educational loans to the students of IIRM. (The author is the Managing Director of IIRM and Ex-Deputy Governor, Reserve Bank of India and former Managing Director, State Bank of India.) CAREER AS A COMPANY SECRETARY Career as a Company Secretary is not only prestigious and financially rewarding but also carries with it a high degree of job satisfaction. The Institute of Company Secretaries of India develops and regulates the profession of Company Secretaries in India. There are three stages to be pursued to qualify as a Company Secretary. Foundation Course 5 Papers Intermediate Course 8 Papers Final Course 9 Papers The Company Secretary Course is by Correspondence with provision for Optional Oral Coaching classes. For Foundation Course the minimum qualification is 10+2 or equivalent in any stream except Fine Arts. For Intermediate Course the minimum qualification is CS Foundation Pass or Graduation in any discipline, Arts/Science/Commerce except Fine Arts. The Final Examination is after passing the Intermediate Course. 16 months Management Training is to be undergone after passing the Inter/Final examination or Practical experience. The ICSI and its Regional Councils and Chapters offer Placement Services to Members and Students. A qualified Company Secretary has openings both in Employment and in Practice FUNCTIONS OF A COMPANY SECRETARY A Company Secretary is : An expert in Company, Corporate and Securities Laws A vital link between the company and its: Board of Directors Shareholders Government and Regulatory Authorities A conscience seeker of the company A compliance officer of the company Corporate Planner and Strategic Manager EMPLOYMENT PROSPECTS A qualified company secretary has openings in Employment and as a Practising Independent Professional Company Secretary in Employment: Companies with a paid up share capital of Rs.2 crores or more are compulsorily required to appoint a whole-time Company Secretary.

All companies seeking listing on Stock Exchange are required to appoint a whole-time company secretary Membership of the Institute is recognized for appointment to superior posts and services under Central Government. Membership of the Institute is an essential qualification for recruitment from Grade I to Grade IV in the Accounts branch of the Indian Company Law Service. Prospects for a CS with the boom in IT industry A Company Secretary is a knowledge professional with a research bent of mind acquired through rigorous training in corporate laws and corporate management. The syllabus for the course also grills him in Information Systems and Systems Audit. As such, Company Secretaries are well versed in Information Technology as well as ITES. With his procedure orientation and mastery, Company Secretary is able to set up the EOU shop for IT and BPO industries cost efficiently. He is also well versed in foreign collaboration and joint venture agreements as well as intellectual property rights. This enables him to add value to IT or BPO subsidiaries of foreign companies in India as well as the takeover activities by Indian corporates in foreign countries in IT and ITES sectors. As knowledge professional well versed in Indian Laws, judicial decisions as well as laws of countries with which indian IT and ITES industry deals. Knowledge Process Outsourcing is the industry of the future with a business volumes expected by India alone from US of the order of USD 12 billion over the next five years. Company Secretaries willing to establish themselves in the IT sector should acquire knowledge and skills in intellectual property management for the IT companies who would move up the value chain. Technical skills in IT industry become outdated very fast. In this situation, Company Secretaries should also acquire continuous up-gradation in their knowledge and skills particularly in the skill-sets required for cross-cultural negotiations between India and the country of the collaborator or the customer of the IT company, both for vertical cross border integration as well as customer delight. Opportunities abroad for CS Many Company Secretaries are already working in various countries like the US, Canada, UK, Singapore, Malaysia, Thailand, Australia, New Zealand, Middle-east, Africa, etc. With their research and legal bent of mind, their employers have recognized their professional skill sets. They also possess managerial capabilities and analytical skills. After the globalisation of services the field is opening in various countries for practicing Company Secretaries as well. India is entering into bilateral Comprehensive Economic Cooperation Agreements with countries like Singapore, Malaysia, Thailand, and Mauritius etc. These agreements recognize Company Secretaries for free movement of professionals across borders. ICSI has entered into an MoU with the Institute of Chartered Secretaries and Administrators, UK. This MoU recognizes Company Secretaries of both the countries on certain conditions. The process of globalisation and the process of comprehensive economic cooperation that India is initiating has also set in motion mutual recognition agreements between the ICSI and Institutes governing the profession in various other countries. This is opening up the world to Company Secretaries. CS course going online (virtual classroom) Today the education for Company Secretary course is through postal and oral coaching. This deprives students from semiurban and rural areas of touch with expert faculties. In the

web-based e-Iearning module, students will be able to learn about the subject at their desk top. They can, at their convenience, send their responses for evaluation and feedback by faculties. Faculties can give online suggestions for improvement. The virtual class room module would be launched by the end of this year. In this module students can attend classes at computer centres near their locations and interact live with the faculty on screen. This will create a hitech yet easy learning environment for students in all nooks and corners of the country. Placement Services The Institute is providing placement services to the members. As a part of the service, the Institute maintains a databank of the members registered for the placement and a list of suitable candidates is provided to the employers on request. The bio data of the members are also available on the website of the Institute for surfing by the prospective employers, who can shortlist the candidates suiting their requirements from the website itself. The vacancies for the post of Company Secretaries received in the Institute are also placed on the website for reference by the members seeking placement or change in employment. A placement folder is also maintained for reference by the members visiting the Institute for placement. The members can also upload their bio data directly on the website. Similar services are also provided by the Regional Councils and Chapters located in the various parts of the country. It may also be mentioned that the members of the Institute are occupying prestigious positions such as Managing Director, Executive Director, and Vice President etc. Some of the members are occupying senior positions in the Government departments and regulatory bodies. There are ample opportunities for the members to go for practice independently. Self-Employment Practice After obtaining a 'Certificate of Practice' from the Institute, Members of the Institute can go in for Independent Practice. Every company having a paid-up share capital of Rs. Ten Lakhs or more but less than Rs. Two Crores is required to engage the services of a Secretary in Whole-Time Practice for issue of Compliance Certificate. Company Secretary as independent professional A Company Secretary practice is recognized to issue certificates and attest documents under: Companies Act, 1956 SEBT Act, SCRA and regulations etc. made there under Depositories Act Exim Policy Company Secretaries in Practice also render the following Services: Legal, Secretarial and Corporate Governance Corporate Restructuring Foreign Collaborations and Joint Ventures Arbitration and Conciliation Financial Management Project Planning Capital Market and Investor Relations Due Diligence Corporate Advisory Services Membership After qualifying the Final examination and on completion of training as provided under the regulations, a candidate is

admitted as an Associate Member of the Institute and can use the letters "ACS" after his/ her name. Further Academic Pursuits The CS Course is recognized by the various Universities for admission to PhD Course appointment of Lecturers utilisation of services of members by various lCSI conducts Post professional/educational bodies for academic activities. Membership Qualification (PMQ) Course in Corporate Governance for its members For Further details log on to www.icsi.edu ( Amita Ahuja, Director (PR), Institute of Company Secretaries of India.)