The report on SEBI likely to make net worth certificate compulsory for retail investors (August 14) is a welcome move considering that the market is at a peek and highly volatile. While the recent IPOs have given more than 50 per cent returns in a short span, the trend stopped after the Reliance Power IPO. It’s strange that many people, in spite of investor guidance and warnings, still get into the trap of IPOs and other new IPO funds that promise very high listing gains. SEBI and AMFI, among others, have done their best to protect investors by better disclosures, and better format/presentation. But if as an investor we trust agents blindly and the past performance of any fund, then we can’t blame anyone.

Remember, CRISIL and other agencies provide ratings on the stability of companies. Since the market is providing better returns than fixed deposits, money is pouring into mutual fund and the market directly. Low brokerage and online trading facilities on smartphones have also made it much easier for investors to trade in the market.

Knowingly or unknowingly people get into futures and options as well and since these don’t have circuit limits, they can completely wipe off of one’s capital. In this context, SEBI’s move is welcome as it will protect people from losing money by taking unwanted risky positions.

Kamal Anil Kapadia

Mumbai

Leadership issue in TN

This refers to the article ‘Karuna leaves behind a political vacuum’ (August 14). The Dravidian-era, which began in 1967, has successfully seen through leadership issues. In 1969, the death of CN Annadurai saw M Karunanidhi take over as president of the DMK. And, even in the AIADMK, the demise of MG Ramachandran elevated J Jayalalithaa as its general secretary. Therefore, filling the current leadership vacuum is just a matter of time.

The main issue plaguing the two Dravidian parties now is very different. In the AIADMK, there is no legal heir or planned successor to succeed Jayalalithaa, whereas in the DMK, many legal heirs are vying for the party’s top post. Executive president MK Stalin, the frontrunner to the DMK president post, is no politically neophyte. He has been at the helm of party affairs for some time now has also given a new lease of life to the party’s youth-wing.

In the reckoning of political analysts, MK Stalin may not be a political- chanakiya like his father, but he follows a different style of leadership — trying to portray himself as trustworthy leader who believes in law of land. For the DMK, it is the right time to pass the baton to MK Stalin.

S Lakshminarayanan

Cuddalore, TN

Deposit insurance

This refers to the article ‘Time to scale up deposit insurance’ (August 14). Comparing government banks in India with banks in other countries is like comparing oranges and apples. We should not blindly apply what is prevailing in western countries. When major portion of deposits are with public sector banks and when the government has the wherewithal to come to the rescue of banks in any eventuality, why these deposits need insurance coverage? The DICGC is also a subsidiary of the RBI and practically this should be considered as owned by the government. For the past 50 years, the DICGC has used the premium collected from public sector banks to settle the claims of private and cooperative banks. This should be stopped at least now.

S Kalyanasundaram

Email

A tall leader

Former Lok Sabha Speaker Somnath Chatterjee will be remembered as a leader who rose above ideological trappings in the line of duty, made friends across the political spectrum and won the respect of his peers as an outstanding parliamentarian and orator.

As Speaker, while remaining accessible, he brought a certain gravitas to the chair. Somnath Chatterjee, the first Communist Speaker of the Lok Sabha, defied his party and refused to quit the post over the Indo-US nuclear deal in 2008. Politicians like him are in short supply these days.

JS Acharya

Hyderabad

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.