Securities Services & Issuer Services

IIM Lucknow Presentation

Aashish Mishra
January 2015

Citi India- 112 year old legacy

1

112 year old legacy in India

Represents one of the largest foreign direct investments

in financial services in India ($4 Billion + of Capital)
Ludhiana
Chandigarh

44 Citibank branches in 28 cities across India;

550+ ATMs across the country

Delhi
Gurgaon
Noida
Jaipur

Lucknow

1.7 million credit card customers and 1.2 million retail

customers
Ahmedabad
Bhopal

Over 1,600 large local corporate and multinational clients

Indore

Baroda
Surat

Vapi
Nasik

Mumbai

Over 52,000 Corporate Clients (including SME / MME

/Citi Business)

Akola

Kolkata
Bhubaneswar

Nanded
Pune
Hyderabad

Employer of choice to 11,000+ employees, 4500 + employees

engaged with centers of excellence (COEs) supporting global
businesses

Kurnool
Citibank Branch
Citi Back Offices

Bangalore

As the largest Foreign Bank in India, Citi moves ~6% of

Indias payment flows, ~13% of FX flows and~8% of trade
flows

Chennai
Coimbatore

Citi Front Offices

Citi Non Resident Indian Offices1

Kochi

Citi continued its leadership into a dominant market share

position in 2014 in both Equity Capital markets and USD
Bond issuance

Centres of Excellence

Citi India Desks

Korea Desk
Japan Desk

Citi Structure- Securities Services & Issuer Services

Global Consumer Banking

Regional Consumer Banking
Retail Banking

Institutional Clients Group

Capital Markets Origination

Corporate and
Investment Banking

Treasury and
Trade Solutions

Private Bank

Citi Branded Cards

Citi Retail Services

Markets and
Securities Services

Citi Structure- Securities Services & Issuer Services

Global Consumer Banking

Regional Consumer Banking
Retail Banking

Institutional Clients Group

Capital Markets Origination

Corporate and
Investment Banking

Treasury and
Trade Solutions

Private Bank

Citi Branded Cards

Citi Retail Services

Markets and
Securities Services

Markets and Securities Services

Commodities

Equities

Retail Structured
Products

G10 Rates /
Risk Treasury /
FI Finance

Global Securitized
Markets

Municipals

FX and EM Local
Markets

Investor Services

Direct Custody
and Clearing

Credit Products

Investor Services
Prime Finance
Prime Finance

Futures, Clearing,
and Collateral

Global Custody and

Alternative Investor Services

Global Fund Services

Prime Finance
Delta One
Agency Securities Lending

Futures
OTC Clearing
Collateral Management

Global Custody
Private Equity Services

Fund Administration
Transfer Agency
Middle Office Services

Citi Structure- Securities Services & Issuer Services

Global Consumer Banking

Regional Consumer Banking
Retail Banking

Institutional Clients Group

Capital Markets Origination

Corporate and
Investment Banking

Treasury and
Trade Solutions

Private Bank

Citi Branded Cards

Citi Retail Services

Markets and
Securities Services

Capital Markets Origination

Debt Capital Market

Syndicated Loans

Equity Capital Market

Issuer Services

SS & IS: Client and Solution Set

Issuer
Services

Direct Custody &

Clearing

Investor
Services

Specialized, but highly linked product set integrated into client solutions

Value Proposition

Clients

Products

Pensions/SWF
Asset Managers
HFs, FoF, PE
Insurance Cos.
Central Banks

Middle Office
Fund Services/ TA
Agent Sec. Lending
Global Custody & Alternative
investor Services
Prime Finance
Futures, Clearing & Collateral

Solutions orientation, tailored

service, best of-breed platform
Open architecture with modular
approach

Broker-Dealers
MTFs/Infra
HFT/ Algo Trader
Global Custodian

Settlement (cash & securities

movement in the securities
depository)
FX/Funding Services
Corporate Actions Processing
Income Processing
Proxy Voting Services
Market Information services

Local presence in 61 markets

Deep market expertise & influence
Widest network- global in-market
presence in 98 countries
5 Regional securities finance desks

Corporate
Governments
Financial Institutions

Conventional Debt
Structured Finance
Specialized Paying Agent
Depositary Receipts

Expertise in solution engineering

for complex transactions
Supporting cross-jurisdiction
ECM/DCM transactions

Investment Services Product Portfolio

Modular solutions tailored to firms specific requirements

Fund Services
Comprehensive fund administration, accounting,
middle office and investor recordkeeping
Award winning hedge and private equity solutions

Fund
Services

Global Custody
The worlds most extensive proprietary settlement
and cash processing network
Prime Finance

Custody

Investor

Prime Brokerage, Delta One & Securities Finance

including Agency Securities Lending
Futures, Clearing & Collateral Management
Market access and expertise in 100+ countries
through our global network
Agnostic connectivity to viable clearing houses
throughout the world

Investment services designed from an investors

perspective

Futures, Clearing
& Collateral

Prime
Finance

Direct Custody & Clearing Product

Direct Custody & Clearing provides post-trade processing for equities and fixed income

Post-Trade

Pre-Trade and Trade

Research,
Analysis &
Risk Mgmt

Order
Entry &
Execution

Clearing and
Settlement

Other Services

Custody and Asset

Servicing

Exchanging Cash for Securities (or vice

versa) in Local Markets

Financing

Accounting,
Admin &
Trustee Svc

Investor
Services

Holding and Managing Securities

Positions for Clients

Pre-matching of settlement details (e.g., quantity,

amount, date) with counterparties

Safekeeping of holdings in the local market

Corporate Actions Processing (e.g., rights, splits, tenders)

Settlement (cash & securities movement in the

securities depository)

Income Processing (e.g., dividends, interest)

Credit extension to facilitate settlement

Tax Reclamation Services

FX/Funding Services

Proxy Voting Services

Fails Coverage Services (temporary lending of

securities to clients to cover settlement obligations)

Cash & Liquidity Management

Market Information services

These services are provided to all Direct Custody & Clearing clients, though some clients may require
more clearing and settlement, while others require more custody and asset servicing

Issuer Services Product Portfolio

Global A&T & DR Services
Debt Issues/MTN
program

Note Trustee
Debenture
holders
representative
Issuing & paying
agent
Security trustee
Common
depositary
Fiscal/Principal
Paying agent
Registrar/
Transfer agent
Calculation
agent

Mergers &
Acquisitions

Escrow Services

Escrow agent
(cash,
securities etc.)
Calculation
agent
Closing agent
Accounts bank
Real estate
property trust

Tender agent
Escrow agent
Registrar
Exchange
agent
Accounts bank
Closing agent
Paying bank
Institutional
acceptance
facility agent

Structured
Finance

Trustee
Paying agent
Accounts bank
Calculation
agent
Bond analytics
Investor
reporting
Transaction
administrator
Back-up
servicer

Project Finance

Facility agent
Security
trustee
(offshore and
onshore)
Collateral
agent
Escrow agent
Accounts
bank
Real Estate
Property Trust

Depositary
Receipts

Capital
markets
solution to
facilitate trade
execution
and
settlement
Account
management
&
administration
Investor
relations- IR
advisory &
intelligence

Citi provides issuers with an end-to-end solution to execute their strategy

SS & IS Career opportunity

Roles

Snapshot of a typical day

Product
Manager

Client Sales
Manager

Plan for market changes in the next quarter

Meet with SEBI & Ministry of Finance for new capital market products and related
regulations

Monitor business P&L for the current month

Analyze client revenue trends to detect deviations and take corrective action

Keep a lookout on competitor activities for identifying opportunities for Citi

Present business strategy to a Global business head

Meet with top-tier fund manager to understand their market asks

Represent Citi on various committees set up by regulators and provide feedback on

expected regulations

Engage with Legal, Compliance and internal control functions for managing the product

Plan for Roadshows in next quarter to US, Europe and Japan

Call the Regional Prime Brokerage & FX Sales teams to co-ordinate Prospect pitches

Meet an Indian fund manager advising an international pension fund for client contacts

Speak with the Lead trader of an international mutual fund for India opportunities

Structure solutions for an international investor keen to invest in Indian Debt

Pull together colleagues across Equities, Debt, FX teams for structuring solutions

Engage actively with clients for managing implementations of large mandates

Jointly pitch on Level 1 ADRs along with Investment Banking or Commercial Banking team
to local corporates

Keep in touch with intermediaries like law firms, brokers, tax consultants on a regular basis
for sourcing new clients and deals

SS & IS Case Studies

Overseas Pension Fund
A multi- billion dollar pension fund wanted to take exposure in Indian equity market

Citi India helped the pension fund in obtaining an FPI licence and advised the investment
manager on the best way of accessing India market
Citi India managed their transactions through custody & safekeeping offering, monitored
income processing along with corporate action processing on their India portfolio

Local Corporate
A local corporate wanted to access US capital market
Citi India offered a Level 1 American Depositary Receipt program which will be listed
in OTC exchange and provide the local corporate access to US equity market at
relatively low cost and practically no SEC compliance

Domestic Mutual Fund

A domestic mutual fund wanted to outsource their asset and NAV valuation across
30+ schemes
Citi India provided the comprehensive fund accounting and NAV valuation offering for
managing their NAV computation, reporting, corporate action servicing and income
processing requirements. Further, Citi India also provided custody and safekeeping
offering for managing their capital market transactions on a daily basis

Hedge Fund
A leading hedge wanted to access Indian market with leverage

Citis local Delta1 desk provided a synthetic access to India while the Citi on-shore
desk helped in providing futures exposure for creating leverage

Securities Services in India

30%
Share of FII trade
volumes

50%
Custodian to 50% of
Indian asset managers

Citi Market Advocacy Efforts Key Influencer

16%
No. 1 in USD / INR
FX flows

13
Top-rated by Global
Custodian for 13 years

Citi India SFS Overview

Citi is the leading provider of custodial services in India

SEBIs
Foreign
Investment
Committee
SEBIs Core
Committee of
Market
Intermediaries
Advisory
committee of
NSCCL (NSE
Clearing
Corporation)

FICCI
Capital
Markets
Committee

PASLA and
Regulators on
Securities
Lending
NSDL
(central
depository)
executive
committee

Citi SFS by numbers

100%
Settlement Rate

2
Live processing from two cities

>99%
STP Rate

185
AUC (USD Billion)

70%
Capacity kept below 70%

875,000
Transactions per year

Market Leadership
Dominant market share across FPIs & local mutual funds
Comprehensive suite of services Custody, QDP, SLB, FX,
Futures Clearing (Equity, Interest, FX), Fund Admin, Escrow
Won the largest fixed income & largest equity mandates in
India in 2014 with assets of over $15bn now being held by Citi
Largest team of 200 people split across two cities
Client Focused Innovation
Most flexible funding and margining solutions first to enable
margin netting and non-cash collateral for equities
First-to-market FX benchmarking, netting & 3rd party FX
First custodian QDP to enable erstwhile QFI regime
First & only custodian providing a program based securities
lending solution (OpenLend)
First custodian to offer e-voting services in India
First Custodian DDP to register Foreign Portfolio Investors
(FPI) in India on 1st June 2014
Awards & Recognition
Awarded Best Direct Custody Bank for India by Asian
Investor Magazine for four consecutive years (2010-13)
Top rated by Global Custodian for consistently 13 years

SS & IS: Industry Recognition & Client Testimonies

Citibank's service is unparalleled. Market
knowledge is exceptional, responsiveness
excellent and Citi has great market influence.

Citibank India demonstrated their always proactive approach in getting the information to the
client.
Citibank is our preferred provider in this
market and is viewed by us as the gold
standard. They are proactive on issues and
initiatives as well as forward thinking and
flexible.

Excellent service, responsiveness and giving us

a feeling that they are always there

It takes very special people to put aside their

work or personal life to assist in helping us get
our requests completed on time and in an
efficient manner
The Service provided by Citi at all times has
been exceptional from account statements to
Query resolution

Consistently Top Rated for 13 years in Global Custodian Emerging Markets Survey

Awarded AsianInvestor's Best Direct Custody Bank in India for four consecutive years, 2010-13

TALENT DEVELOPMENT AT
CITI

A Galaxy of Leaders

Mike Corbat, CEO,

Citigroup

Ajay Banga- CEO,

MasterCard

Jerry Rao- Founder

Mphasis

Sally KrawcheckEx CEO Smith

Barney

Jamie DimonCEO, JP Morgan

Aditya Puri- CEO,

HDFC Bank

Jane Fraser- Head

Consumer Bank N.A.
Citi

Pramit JhaveriCEO, Citi India

Gunit ChadhaCEO, Deutsche

APAC

Antony Jenkins,
CEO, Barclays

Sanjay NayarCEO, KKR India

Victor MenezesVice Chairman, Citi

The Essence

GLOBALITY
BREADTH
INNOVATION

What we stand by?

Citi Mission Statement and Principles:
Citi works tirelessly to serve individuals, communities, institutions and nations. With 200 years
of experience meeting the world's toughest challenges and seizing its greatest opportunities,
we strive to create the best outcomes for our clients and customers with financial solutions
that are simple, creative and responsible. An institution connecting over 1,000 cities, 160
countries and millions of people, we are your global bank; we are Citi.
The four key principlesthe values that guide us as we perform our missionare:

Common Purpose
One team, with one goal: serving our clients and stakeholders.
Responsible Finance
Conduct that is transparent, prudent and dependable.
Ingenuity
Enhancing our clients lives through innovation that harnesses the breadth and depth of
our information, global network, and world-class products.
Leadership
Talented people with the best training who thrive in a diverse meritocracy that demands
excellence, initiative and courage.

What we stand by?

Leadership Standards:
The Leadership Standards create a common language for
what great leadership looks like at CIti

DRIVES CLIENT VALUE

DELIVERS RESULTS

Leaders create unique value for

internal and external clients based on
expertise and in-depth knowledge of
the stakeholder environment

Leaders raise the bar and create a clear

path forward towards sustainable results

ACTS AS AN OWNER

LEADS CHANGE

Leaders
take
responsibility
for
addressing problems, finding solutions
and making prudent decisions

Leaders
pioneer
and
accelerate
productive and innovative changes that
support Citis vision and global strategy

WORKS AS A PARTNER
Leaders collaborate and partner to
break down silos and create One Citi

BUILDS GREAT TEAMS

Leaders
create
a
competitive
advantage
by emphasizing talent,
learning and apprenticeship

MANAGEMENT ASSOCIATE
PROGRAM

Management Associate Program

A-Max - 14
Day Induction
for all
Management
Associates

Cross functional
rotations

International
Training
program MAGIC

2 Year Program

Networking
Opportunities

Final Role
Allocation

Development Approach
Development needs can be addressed by any one or more of the three learning
actions i.e. Learning On the Job, Learning From Others and Training. Following
activities in these actions help achieve the development objectives
On The Job
Experience

Special Projects
Cross functional / business
assignments
Stretch assignments
Job Rotations
Innovation opportunities
Teaching others

Development
Plan

Knowledge, Skills &

Behavior learning programs
Self paced learning
programs through e learning
External programs for
advanced functional
knowledge / skills

Training

From Others

Education

Exposure

Exposure to leaders
Mentoring / Coaching
Performance feedback
360 Feedback
Cross business forums
Industry / functional forums

Thank You