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This is with reference to the report that the Finance Minister has stated there are ‘no immediate plans to curb ‘foreign capital inflows into the country. It is welcome news as we do need funds for various infrastructure projects and other economic activities.

But entry into the stock market and trade in large volumes of equities is a matter of some concern since unloading them at specific times for booking profits will cause instability on the bourses.

Such activity is seen in the stock market these days which has resulted in the volatility.

The remedy lies not in curbing their entry but to phase and monitor their activity by setting up a trading platform in corporate form, but scrutinised by the government, to check any large-scale selling or buying. This will also add strength to the market.

T. R. Anandan, Coimbatore

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