Beneficial ownership
This refers to ‘What the SC committee downplayed in Adani case’ (June 1). Establishing a breach in the maximum threshold limit of 75 per cent set by SEBI has always been challenging in view of corporates resorting to complex multi-layered structures to conceal the ownership pattern, and Adani’s case is no exception.
Unfortunately, FPI inflows being one of the important factors behind the rally in the Indian stock market, it is not surprising that the market regulator is turning a Nelson’s eye to this issue.
Offshore tax havens operate behind a veil of secrecy which makes SEBI’s task of ascertaining the shareholding pattern of corporates difficult. A parallel could be drawn here with the participatory note route used by FIIs, which operate behind the anonymity it offers to hoodwink taxes. Even though the RBI has been plugging the loopholes in the Prevention of Money Laundering Act, leading to more transparency in ascertaining “beneficial ownership”, the pressure exerted by influential corporates seems to override the reform process.
Srinivasan Velamur
Chennai
Independent probe
Since the Adani group is refusing any external independent examination, the creditors of the group should initiate a detailed probe, for which they could seek the support of ICAI or reputed global investigating agencies. With the clean chit given by some countries, the preliminary no-malfeasance observations made by the expert committee and SEBI’s new initiatives for granular disclosure requirements by high risk FPIs, an intensive and speedy probe would safeguard the interests of the creditors and stockholders of the group.
Sitaram Popuri
Bengaluru
SEBI steps up
The Congress party is piqued, and rightly so, that SEBI is hurrying to plug loopholes vis-a-vis FPI disclosures when the Adani conglomerate has already made the most of a slack monitoring system. However, SEBI’s intention to tighten the rules regarding FPI disclosures is a welcome step as that would make for greater transparency and alert investors as well.
CV Aravind
Bengaluru
GDP growth
This refers to ‘FY23 growth higher than expected but not broad-based’ (June 1). Belying expectations, the Indian economy grew at 6.1 per cent in the fourth quarter of the last financial year, and the result is that growth for the entire financial year (2022-23) has now been pegged at 7.2 per cent, marginally higher than the earlier estimate of 7 per cent.
As the full impact of tighter domestic and global financial conditions is likely to be felt in the coming days, growth momentum may take a beating. Under these circumstances, the RBI needs to be pragmatic in its monetary tightening measures. With inflationary pressures on the wane, the RBI can turn its focus to accelerating economic growth.
M Jeyaram
Sholavandan, TN
Aviation fuel quality
Apropos ‘India committed to achieving net zero carbon emission by 2070: Rajiv Bansal’, the Secretary, Civil Aviation, has rightly emphasised the importance of having sustainable aviation fuels in achieving the net zero goal. There must be a wider debate on the quality of the aviation fuel that is being used, the level of toxic content aircraft engines emit into the atmosphere and the need for bringing down the toxic level.
RV Baskaran
Chennai
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