Apropos ‘SEBI moots trading without transfer of funds to brokers’ (January 18), the proposed system will give much-needed protection to investors. Every year quite a few stock brokers do the disappearing act, plunging their clients into heavy losses. The new system will definitely enhance the trust of investors in the stock market ecosystem. However, the system increases the workload of banks exponentially, as the number of daily trades on exchanges is huge and the process of blocking and clearing funds may necessitate software as well as hardware upgradation of banks’ computer systems to enable them handle the huge volumes of transactions.
Hence, it may be in order if banks are paid a small fee per transaction or a graded fee based on value of each transaction by the customer.
This refers to ‘Why a new law against BigTech?’ (January 18). The author argues that the existing competition law provisions are “adequate” to achieve the recommendations made by the House Panel on BigTech, which call for enactment of Digital Competition Act as an ex ante tool to regulate digital markets.
The experience gathered so far and the global policy approaches desiderate immediate enactment of Digital Competition Act on the lines of the Digital Markets Act of the European Union to provide for, on an ex ante basis, the binding obligations for gatekeeper platforms. Digital markets are dynamic and the extant post facto approach of competition agencies may be inadequate to respond to such markets in a timely manner. By the time interventions take place, markets may have already tipped distorting the field irreversibly.
The author also argues for ‘effects based’ approach in dealing with cases of abuse of dominant position. This is equally flawed. Once an entity is found to be dominant, it is not only unnecessary but superfluous to show any actual effects in the market.
By the time competition authorities demonstrate such effects, markets will be distorted and altered beyond repair. Any anticompetitive conduct needs to be examined based on its potential harm, than actual harm.
This refers to ‘Primary concerns’ (January 18). The move to revamp the co-operative system is praiseworthy.
Today, the situation is complex, as the growth of co-operatives in different States are at different levels, with multiplicity of political pulls and pushes adding to the problems.
But that should not deter the Central and State governments from moving forward with initiatives to reorganise co-operatives, to make them more efficient and amenable to regulatory control. There are successful experiments like Kerala Bank and Amul which can be adapted to suit different service needs.
This refers to ‘On a learning curve’ (January 18). The underlying purpose of higher education lies in enhancing the well-being of society and in supporting the development of relevant professional skillsets.
The government should allocate more funds towards the enhancement and development of higher technical and other professional education. Policymakers must prepare a curricula that nurture the young minds to meet the global needs.
P Sundara Pandian