Commodities trading

This refers to ‘Commodity catalyst’ (May 18). The recent notification of SEBI allowing FPIs direct market access (DMA) in the exchange traded commodity derivative segment is a welcome move and will ensure depth in the market. But giving direct market access to traders without the intervention of broking professionals and resorting to algo trading, which is capable of taking decisions on its own based on historical data, are fraught with risks.

Trading gets impacted by several factors, and last minute changes in market movements due to unexpected events on the political front would not get reflected in algo platforms, but would lead to sudden market fluctuations that too in the cash segment which are speculative in nature. Also, the risks related to equity trading in terms of illiquidity which exists in the case of certain stocks leading to rigging in stock prices may get cascaded to commodity trading too. SEBI needs to devise norms to curtail such commodity stocks and ensure transparency so that FPIs do not get into this trap.

Srinivasan Velamur


Retain skilled labour

This refers to ‘India’s huge labour export potential’ (May 18). The flip side of this theme deserves examination. China exploited its growth and job potential through large scale manufacture providing infrastructure for industrial and technical training. Industries were given assistance in imparting targeted skills. It is now the global manufacturing hub. Yet, China’s labour migration to other nations is the lowest in the world, as percentage of its total labour pool.

India is aiming at becoming a $5 trillion economy in a few years. With the dynamics of labour engagement changing relentlessly, we would need to retain our skilled workforce through innovative labour policies.

R Narayanan

Navi Mumbai

Curbing digital fraud

This has reference to ‘Curbing SMS frauds’ (May 18). While fraudsters may have become more sophisticated in the digital age, technological advancements have also brought about improved security measures. Banks, telecom operators and regulatory agencies are conducting awareness campaigns to educate users about fraud. The responsibility to protect cellphone users from fraudsters lies not only with these organisations but also with individuals who should exercise caution and employ security measures.

PD Sankaranarayanan

Palakkad, Kerala

Heavy price of freebies

This is with reference to ‘Cong freebies come with a heavy price tag for exchequer’ (May 18). People go for the goodies politicians give during elections and vote accordingly, without realising that such promises are short-lived and will not change their lives. The money which should have been used for the development of infrastructure and industry is being used to give freebies to the people. Poverty and freebies are a vicious circle. Our politicians/leaders believe developmental work is a long-drawn process and does not yield immediate results in terms of luring voters. Because of poverty and illiteracy, the poor do not understand that the freebies are a shortcut method used by politicians to come to power.

If people get used to freebies they will never feel motivated to work hard and be an asset to the nation. A country’s development, to a large extent, is determined by the quality of its people.

Veena Shenoy