Curbing insider trading

With reference to ‘Strike a balance’ (November 13), the proposed regulatory initiatives on alignment of disclosure of “material events” by listed companies, on the same lines of insider trading regulations, would help usher in healthier reporting and compliance standards. Though some of the proposed terms may increase the compliance burden of the listed companies, it would support establishment of a robust stock market mechanism and prevent unethical corporate actions, if any. To achieve more transparency, the scope of UPSI should be enlarged to include disclosures on company valuations, investments and trading transactions of high net worth and overseas investors, external borrowing commitments undertaken by companies and the interests of related parties in major transactions, keeping in view the issues that cropped up in the Hindenberg-Adani episode.

Sitaram Popuri

Bengaluru

Skilling the interns

Apropos ‘Internships’ efficacy’ (November 13), the internship programme started by the government intended to develop skills and make the youth ready for employment is expected to bring about a revolutionary change in reducing the skill gap that has been persistently observed by the industry. However, the youth need to be well-tutored by educational institutions to exploit the full potential of these IPs and attain the skills required by the industry. As such, the educational curriculum and teaching methodology need to be tweaked to suit the needs of the industry towards this end. Students should be taught the necessary soft skills also, including the basic ability to communicate in English, during their educational career itself so that they would be able to participate in IPs without any inhibitions and handicaps on that account. Industries participating in the IP should give the internees all the opportunities and freedom for learning , provide mentorship and oversee their progress.

Kosaraju Chandramouli

Hyderabad

Performance of PSBs

This refers to ‘PSBs post 26% jump in H1 net on all-round improvement’ (November 13). Public sector banks, despite human capital constraints and social banking-oriented activities, are delivering better returns, which indicates that the quality of governance has improved. As a consequence of growing economic activities, capacity creation is expanding, and funding opportunities are also growing ; however, lenders, especially banks, need to be more vigilant while originating credit and disbursements.

Asset quality and asset-liability matching are critical factors for ensuring credibility of and trust in banks. Banks and their stakeholders should not be complacent. They must sustain their governance standards, to prevent their assets from becoming non-performing.

VSK Pillai

Changanacherry, Kerala

Machine de-weeding

Apropos ‘Excess rain spurs use of more herbicides this kharif season’ (November 13). Obviously more weeds grow when there is excess rains. However, when weeds are shredded using a brush cutter, they get evenly spread over the farmland, which enhance soil carbon and organic matter. Use of herbicides only degrades soil pH and affects crop yield.

Rajiv Magal

Halekere Village, Karnataka