This refers to your editorial ‘The great divide’ (October 13). The mutual fund industry is on a fast track driven by a booming stock market and proper regulations by the SEBI. Mutual funds are now sold by a mix of banks, corporate agents, and individual distributors who earn 1 per cent commission on their business.

A few of these have registered as investment advisers and charge an advisory fee. The latest discussion paper of SEBI is an attempt to put an end to the conflict of interest by drawing a fine line of demarcation between distributors who execute transactions and ‘financial advisors’ who influence the choice of fund by the investors.

Now, the SEBI wants the intermediaries not to play double role but to define themselves either as ‘pure distributors’ or ‘financial advisors’. However, the provision is applicable only to individual distributors and corporate agents and banks are allowed to offer advise and execute transactions. This is restrictive, discriminatory and distorting. The reform may result in the killing of the financial advisor profession in the womb itself.

Philip Sabu

Mannuthy, Kerala

Money matters

This refers to “This money mountain’s no mole hill” by Anand Kalyanaraman (October 13), which is informative and interesting. The pursuit of black money and tax avoidance is not new to the country. The disclosure of ₹65,250 crore under the Income Declaration Scheme is not a small success. The tax income to government of ₹29,400 crore too cannot be considered small. To suggest that total success could be achieved in the initial effort itself is also not a justified thought. The hoarding of black money involves various steps which calls for serious efforts to unfold.

There should be a special wing in the IT department for discrete surveillance of huge tax payers and those involved in black money hoarding to identify methods employed for hoarding cash with informers in all departments in saving money is possible. The steps suggested in the article are pragmatic and workable.

TR Anandan


Politics over strike

Defence Minister Manohar Parikkar only echoed his party’s position on the “befitting reply” to Pakistan and gave the “major credit” to the Prime Minister for his decisive role in the army’s decisive victory. He was magnanimous enough to say that even “doubting Thomases” can share the credit. The message is coming through loud and clear that BJP is all set to use the surgical strikes as a political weapon in the upcoming Assembly elections in UP. The Congress must be ruing that it too could have publicised the military operations in its time and reaped the benefit.

G David Milton

Maruthancode, Tamil Nadu

No bad tradition

This refers to “Princes continue to rule the states of India” by NV Krishnakumar (October 12). Dynastic succession is rooted in the history and culture of our country. It is our culture also to groom the younger ones in the same profession of the family.

As such, it was no wonder that even after the establishment of democracy, we were not embarrassed in being governed by a single family for decades. In principle, there is nothing against family succession if the ruler is trained to rule and competes like common persons to come up in politics. When succession becomes entitlement (not ability), diminishes internal democracy and right of dissent by followers, it is the beginning of dictatorship.

Y G Chouksey


Destabilising PSBs

This refers to the report, “Mounting losses may hit PSBs’ ability to pay interest on bonds: Crisil” (October 13). The easiest way to kill a bank is to spread a rumour that the bank may not be in a position to meet its liabilities as and when demands come up.

This report in question suggests such an imminent possibility in the case of some Indian PSBs. The RBI needs to take cognizance of such planned moves coming from any quarters.

MG Warrier


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