Prof. Jayanth R. Varma's Financial Markets Blog (comments) http://www.iima.ac.in/~jrvarma/blog/index.cgi A Blog on Financial Markets and Their Regulation en Copyright Prof. Jayanth R. Varma blosxom simplerss20 modified http://blogs.law.harvard.edu/tech/rss <![CDATA[Re: Long hiatus ending soon]]> Comment relating to Long hiatus ending soon (posted Mon, 20 Aug 2018 15:40:00 +0530)
abhishek wrote on Sat, 25 Aug 2018 22:16

great to hear that news sir. !! hope to read your views soon

]]>
Sat, 25 Aug 2018 22:16:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2018-19/hiatus.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2018-19/hiatus.discuss#0
<![CDATA[Re: Long hiatus ending soon]]> Comment relating to Long hiatus ending soon (posted Mon, 20 Aug 2018 15:40:00 +0530)
Sahil wrote on Tue, 04 Sep 2018 16:07

Sir, Glad to see a new post on the blog today!

Your article on proprietary software is very relevant and an interesting read. Due to dominance of platforms like the Windows OS, MS Office applications, Adobe PDF most of the files used in corporate world or academia are now ppt/pptx/doc/docx/xls/pdf etc. A large repository of information can become unusable if any of these proprietary application softwares lose tech support. It brings to mind a similar situation in which due to ubiquity and ease of Whatsapp, many informal groups within private and public sector use whatsapp to communicate information. Not only does this lead to legal risk but also to potential information security risks.

]]>
Tue, 04 Sep 2018 16:07:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2018-19/hiatus.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2018-19/hiatus.discuss#1
<![CDATA[DevOps Tutorial]]> Comment relating to Corporate pivots and corporate ponzis (posted Wed, 21 Mar 2018 18:41:00 +0530)
Sonam Jain wrote on Wed, 20 Jun 2018 16:09

I appreciate your work on Blockchain. It's such a wonderful read on Blockchain course. Keep sharing stuffs like this. I am also educating people on similar Blockchain training so if you are interested to know more you can watch this Blockchain tutorial:-https://www.youtube.com/watch?v=KvK5-_JKQjw

]]>
Wed, 20 Jun 2018 16:09:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/pivots-and-ponzis.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/pivots-and-ponzis.discuss#0
<![CDATA[Re: Do we need banks?]]> Comment relating to Do we need banks? (posted Sun, 18 Mar 2018 16:06:00 +0530)
Non Contextual Stats wrote on Mon, 19 Mar 2018 14:56

Using the findings from a study done on US Banks to pronounce that Banks in India are not relevant?

Can you try calculating the RoA for the Indian Banking system and see if that holds true? Otherwise, it seems like a sweeping generalisation done with just a phrase saying " this is more relevant in India". That is a HUGE leap of faith!

]]>
Mon, 19 Mar 2018 14:56:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/do-we-need-banks.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/do-we-need-banks.discuss#0
<![CDATA[Is financial system necessary?]]> Comment relating to Do we need banks? (posted Sun, 18 Mar 2018 16:06:00 +0530)
Durga wrote on Tue, 24 Apr 2018 12:46

I was going through one of the articles in ET and found your name in association with IIM-A.

Then Through your profile on the site. Needless to say, your profile was impressive.

However, there were certain things that did not seem to go well with the insistence of nature on human beings.

You seem to be part of many organisations (kind of board member and so on). How can you handle so many things or manage to be in so many positions at the same time. Human Being is not a Multi tasker by nature, so it is baffling to see u occupy so many positions. I have one question pertaining to this part. Are you doing justice to all the positions that you have occupied? I might be attracting your wrath at this point but it is necessary that the professors of our country are truthful to themselves atleast.

I saw the term 'research' in your profile. What does research mean according to you? Were you a science guy at any point in your life? I can take someone say they are researching on quantum electrodynamics or say microbiology- as both of them lead us to the bahaviour of the nature.

On the contrary, you call derivative, financial research. That sounds absurd as these financial instruments are more or less man made and they work on the way the consumers behave. Sometimes, they rig the behaviour of the consumer for better benefits.

So, finance, accounting are not some natural laws. They are there because there is money. Once the importance of money is gone may be some cryptocurrency usurps the traditional currency or the day food and comfort can't be bought by currency, financial system loses its importance, so do you people.

Regards, Sravan

]]>
Tue, 24 Apr 2018 12:46:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/do-we-need-banks.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/do-we-need-banks.discuss#0-0
<![CDATA[Re: Should Equifax be shut down?]]> Comment relating to Should Equifax be shut down? (posted Wed, 13 Sep 2017 21:32:00 +0530)
Maries wrote on Thu, 14 Sep 2017 13:57

They consider fine as fees. Dan Ariely in his Predictably irrational tells the difference between fine and fees.

]]>
Thu, 14 Sep 2017 13:57:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/equifax.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/equifax.discuss#0
<![CDATA[Re: Re: Should Equifax be shut down?]]> Comment relating to Should Equifax be shut down? (posted Wed, 13 Sep 2017 21:32:00 +0530)
Krishna iyer wrote on Tue, 03 Oct 2017 06:37

Wow, that's a radical way to see things. Strikes right at the heart of the Joint Stock Company. I wonder what 'shut down' would imply. Is it a sale to someone else? In that case it would be BAU under new management Is it change of management? Ditto Is it forced winding down of the company? Now that would shake the ground under capitalism. Imagine of there is a probability however small of a company being wound down and sold for its parts, the knock to the cumulative stock market valuation would be terrible.. Plus, the investors would have done nothing to deserve it. The management needs to pay a price and investors a fine to insist on better manager behavior I future.

Thus in fitness of things I imagine shutting down would be too drastic a step...

]]>
Tue, 03 Oct 2017 06:37:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/equifax.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/equifax.discuss#0-0
<![CDATA[Re: In the sister blog and on Twitter during January-July 2017]]> Comment relating to In the sister blog and on Twitter during January-July 2017 (posted Wed, 02 Aug 2017 14:15:00 +0530)
Prof. Jayanth R Varma wrote on Thu, 03 Aug 2017 17:50

Comments were not working for some time. Have been restored now.

]]>
Thu, 03 Aug 2017 17:50:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/sister-blog-n-twitter-2017-01-to-07.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/sister-blog-n-twitter-2017-01-to-07.discuss#0
<![CDATA[Re: Re: In the sister blog and on Twitter during January-July 2017]]> Comment relating to In the sister blog and on Twitter during January-July 2017 (posted Wed, 02 Aug 2017 14:15:00 +0530)
Prof. Jayanth R Varma wrote on Thu, 03 Aug 2017 18:15

Testing whether reply works

]]>
Thu, 03 Aug 2017 18:15:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/sister-blog-n-twitter-2017-01-to-07.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/sister-blog-n-twitter-2017-01-to-07.discuss#0-0
<![CDATA[Re: Equity Derivatives versus Cash Equities in India]]> Comment relating to Equity Derivatives versus Cash Equities in India (posted Mon, 31 Jul 2017 21:22:00 +0530)
Dilip Kumar Agrawal wrote on Mon, 07 Aug 2017 21:25

I have gone through the whole article and found it to be so good and to the point , that I am thinking why such people are not consulted by the regulators which are headed by IAS burocrats who don't have true knowledge of the subject . They don't know that a vibrant capital market is a must for the growth of an economy . And what ever the author has said if followed will lead to a vibrant capital market .

]]>
Mon, 07 Aug 2017 21:25:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/derivatives-v-cash.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/derivatives-v-cash.discuss#0
<![CDATA[Re: Why Aadhaar transaction authentication is like signing a blank paper]]> Comment relating to Why Aadhaar transaction authentication is like signing a blank paper (posted Wed, 19 Jul 2017 21:34:00 +0530)
Nirmesh Mehta wrote on Thu, 03 Aug 2017 08:41

With reference to your article, I have a fundamental doubt here - is there a difference between verifying identity and authenticating a transaction?

I think the real question involved is

If X is verifying identity of A, is it the same as saying that X has proof that it has verified the identity?

If I understand correctly, there are systems where X can verify identity but cannot prove the same - for instance, if

1. There is key that is shared only between X and A

2. X has a message signed with that key

3. X knows that it did not sign the message

Then X can be sure that A signed it but not prove the same to a third party.

However, the problem is that X needs to be a consistent, internally reliable person and cannot be a system - as far as I understand there is, currently, no way to prove that X did not do something.

Hence, my conclusion is that if a system claims to have verified the identity of a user U, it must claim that the user U has authenticated the transaction of the said verification. Alternatively, the only claim that the system may make is that there is an agent A who claims that he has verified the identity of U.

In practice, I dont think this second assertion is useful. For instance, Why would a business use Aadhaar to perform KYC if it couldn't later prove to law enforcement agency that the Aadhaar number of the customer is, in fact, what they claim it to be and not some random number created from the figment of imagination of one of their employees? If there is court case at some point, would the employee who carried out the authentication really be able to testify that he actually did it?

Just as an aside, I know of a few paranoid people who are very careful about self attesting PAN cards (or other identity cards) - they write on the photocopy what purpose they are attesting it for. The reason is the same that you had mentioned - the self attested identity document is sufficient for purchasing a SIM card.

]]>
Thu, 03 Aug 2017 08:41:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/adhaar.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/adhaar.discuss#0
<![CDATA[Re: Re: Why Aadhaar transaction authentication is like signing a blank paper]]> Comment relating to Why Aadhaar transaction authentication is like signing a blank paper (posted Wed, 19 Jul 2017 21:34:00 +0530)
Prof. Jayanth R Varma wrote on Tue, 29 Aug 2017 21:10

I agree with much of what you say. In cryptography, we draw two distinctions:

(1) between Entity Authentication and Message Authentication

(2) between Message Authentication and Non-repudiation

My blog post focused on the first while you have focused on the second. In practice, both distinctions are important.

An identity card for example provides an entity authentication

Suppose (a) I know you well and (b) you come to my office and (c) tell me something orally, message authentication has been accomplished. I am sure that you told me this, but you can repudiate it because I have no proof.

Now assume (b) and (c) but not (a). Instead, you use (a') an identity card to convince me that it was Nirmesh told me this. (a'+b+c) gives message authentication without non repudiation.

Now assume (a) or (a') and (b) and (c') instead of (c) where (c') is that you write everything down on a piece of paper, sign it it my presence and give it to me. This gives message authentication with non repudiation. Without (a) or (a') I do not know that the signature on the paper is that of Nirmesh.

Aaadhar can serve as (a').

]]>
Tue, 29 Aug 2017 21:10:00 +0530 https://faculty.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/adhaar.discuss http://www.iima.ac.in/~jrvarma/blog/index.cgi/Y2017-18/adhaar.discuss#0-0