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Crowdfunding could be good option for entrepreneurs with out-of-the-box ideas, as mentioned in the article “Time to look at crowd funding” ( Business Line , April 5).
This was the case in India during the 1990s, but the effort failed due to the absence of proper regulations to ensure the safety of funds of investors.
In the absence of proper regulations and legal framework, these ideas should not be taken forward.
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Vinay Singhal
Gurgaon
New entrepreneurship
This refers to “Promoter holding in BSE-500 Companies” ( Business Line , April 8). Many promoters hold less than 20 per cent in the equity of their enterprises.
To promote new entrepreneurship, the institutions and public bodies that held equity in such new enterprises have had an understanding that, in the normal course, if the managements are found to be doing their best to run the entity and are passing through a bad patch for some reason or the other, the promoters should be supported.
This implicitly meant that hostile take-over bids should be discouraged.
Most such units are in small-medium and medium sectors.
The Government, especially through its institutions and agencies such as the SEBI, should incorporate protective mechanisms so that temporary problems like mismatch in financing, market slowdown are not taken advantage of by resourceful bidders who have access to finance and can acquire the enterprises.
K. U. Mada
Mumbai
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