Market fall triggers panic

Nifty and Sensex dropped by 1000 points to close below 22000 points causing panic in investors’ mind.

The reasons behind the drop is associated with increase in returns of US bond yields that led to outflow of foreign investment.

SEBI has a good surveillance system that categorises over valued shares.

Investors should follow SEBI guidelines as a broad indicator to reduce losses.

One should analyse the true value of the share by understanding the fundamentals of the stock.

The drop is driven by sentiments and one should not panic if

the business potential of the company is high.

Vikram Sundaramurthy

Chennai

Rising remittances

This refers to “Braving danger, for better pay” (March 13). Though there is a rise in the number of Indians working abroad, the NRIs constitute less than one per cent (13 million) of Indian population.

However, the increase in remittances shows the ties that NRIs maintain with their families back home.

Increase in the number of foreign employment has also been possible because of the better education and work experience in India now while increase in the amount of remittances to India is also due to the faith the Indians have in the economic strength and stability of the Indian government.

YG Chouksey

Pune

Banking for unbanked

With reference to the article ‘RBI’s role in financial innovation’ (March 13), the government’s financial inclusion mission has enabled the financially excluded to become contributors to growth.

But some fintech firms’ regulatory breaches have threatened the stability of the financial system, whcih could endanger financial inclusion.

Despite the penetration of banks, shadow banks, business correspondents and extensive availability of internet facilities and reasonably priced smart devices, still, a lot of people are not using the Jan Dhan accounts.

They are keeping themselves away from the formal financial system due to a lack of financial literacy and the persisting personal and social hurdles.

It is imperative to make the beneficiaries aware of the benefits and sustain them as active beneficiaries of this ongoing programme.

VSK Pillai

Changanacherry

May set a bad precedent

Apropos ‘Give Kerala one-time aid to defuse financial crisis, SC tells Centre’ (March 13). Although the Centre has the responsibility for safeguarding the State’s financial interests, what is more important is to examine the reasons for Kerala’s crisis.

Judicial intervention without recognising the fundamentals may set a bad precedent since most States are spending huge amounts on populist schemes. This direction from SC may possibly encourage financial mismanagement and wasteful expenditure by States.

Rajiv Magal

Halekere Village (Karnataka)

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