Financial stability

With reference to the Editorial ‘Stable picture’ (July 3), to ensure better monitoring and financial discipline in the NBFC sector, enhanced supervision and a risk-based approach are essential.

Regular on-site inspections and off-site monitoring, particularly for fintech-NBFCs, can detect early signs of stress and prevent evergreening. Loan-level data submission, standardised reporting formats, and regular stress tests can improve transparency and assess resilience to macroeconomic shocks.

Additionally, capital adequacy, liquidity requirements, and fit and proper criteria for management and directors can ensure NBFCs maintain sufficient buffers and expertise.

Continuously reviewing and refining the regulatory framework can address emerging risks and ensure its effectiveness. By adopting these measures, the NBFC sector can maintain financial stability.

Amarjeet Kumar

Hazaribagh, (Jharkhand)

Europe’s Right turn

The swing to the political Right, across Europe was on for a while. Affluence falsely claimed as an outcome of majoritarianism, is steering course in hubris to the Right, in the misplaced pursuit of ambitions.

That said, the counterweight to rightward dispensation has also been pulling up the scales of the Left. Sweden, Denmark and Finland have given the Nordic left a clean sweep. Further south in Europe, the socialists run Spain and Portugal and Germany has anointed social democratic Olof Scholz.

With proletarian strands fraying across the globe, the universal Left will amend its Red text book, to rise with the tide of the times. The cycle is ordained.

R Narayanan

Navi Mumbai

Gaps in surveillance

The saga of allegations, judicial and regulatory actions and the political impact of then Hindenberg stock short-selling episode, exposed the lacunae in the present surveillance systems covering the operations of overseas entities in the Indian securities markets.

In the absence of adequate co-operation from international regulators, the enforcement of regulatory rulings across overseas jurisdictions is impossible. SEBI’s persistent efforts on the disclosure norms insisting the FPIs to declare the ultimate beneficial owners of the investments, has come to a naught, thanks to its limited regulatory powers.

SEBI should explore the possibility of having a common information sharing platform with the global security regulators regularly and ensure strict enforcement of its punitive actions to prevent fraudulent and unfair trade practices henceforth.

Sitaram Popuri


PM-Kisan, a game changer

The article ‘Enrich PM-Kisan scheme’ (July 3) made for a good read. The Pradhan Mantri Kisan Samman Nidhi scheme, which guarantees ₹6,000 annually for the small and marginal farmers is indeed a game changer. It has increased the nominal and real income of the farmers, undoubtedly.

The article has correctly observed that the scheme should include tenant farmers and the State governments should buttress the Centre’s efforts to reach all eligible farmers.

Be that as it may, it is really heartening to learn that increase in rural spending has given a fillip to the nation’s economic growth.

S Ramakrishnasayee