MSCI acted in haste

This refers to ‘Falling short’ (February 21). Though the Hindenburg report had indicted Adani group for following dubious accounting and business practices the same is under investigation by SEBI, the local regular. Under the circumstances the decision of global index provider MSCI to reduce the weightings of Adani group companies is hasty. Considering the negative impact, it would have on Adani stocks, MSCI should have waited for the outcome of the investigation ordered by SEBI.

The suspicion raised by MSCI on designation of some Adani group shares as ‘free float” is purely based on speculation without any corroborative evidence. As stocks with low float is expected to lead to lesser trade volume, it is bound to immensely help short sellers like Hindenburg group to reap huge profits. As such there is a possibility of the group acting with some “hidden agenda”. With MSCI being a leading guiding force on global stock indices, it is expected that its moves are based on some solid evidence through an independent investigation.

Srinivasan Velamur


Securing the boardroom

Apropos ‘Four steps to building board cyber security’ (February 22), cyber attacks can be done from any place and it’s difficult to track. The corporate world is equally vulnerable to such attacks and all stakeholders must prepare for such onslaught in a more cohesive fashion. Including an independent director with the knowledge of cyber risk would be a great help. And, indeed, a deeper engagement between the board and company’s IT staff is also equally critical. In general, companies can ensure that they regularly share updates and information to all their staff so that they are aware about potential risks.

Bal Govind


Revamp pension system

This refers to ‘Switching back to old pension scheme will create huge liability’ (February 21).

Time is opportune for a comprehensive review of retirement benefits in government and the public sector, considering them as a wage component. The argument that restoring the old pension scheme will be more expensive is no answer for the larger issue of accepting retirement benefits as a component in the overall wage structure. Just as wages in private sector are negotiated taking into account cost-to-company and market realities, the Central/State governments should factor in living wages, social security ingredients and market realities while deciding the wage structure.

MG Warrier


Organic farming

This refers to ‘Budget should energise green growth’ (February 21). The rampant use of chemical fertilisers in the last 50-60 years in our eagerness to maximise yields has caused immense damage to both soil and water. There is an urgent need to guide farmers away from chemical fertilisers and towards the organic and bio-fertilisers to improve the soil’s nutrients content and make farming sustainable.

Manure made from animal droppings is the most suitable and important organic fertiliser that has the potential not only to enrich the soil, but also can be used to produce bio-fuel to energise rural homes for lighting and cooking. Farmers need to be encouraged to increase their livestock, so that enough manure is produced for smooth transition to organic farming. profitable to the farmers.

Kosaraju Chandramouli