Bond rush

With reference to your editorial 'Bond Rush' (May 30), a lot of activity seen in the market as regards issue of NCDs both by NBFCs and as well as by corporate houses. As is well known these NCDs carry a significantly higher rate of coupon rate (interest rate) than bank FDs that is why they are so popular and individual investors lap it up without going through the risk factors and credentials of the company/its promoters and so on. It is a fact that NBFCs resort to the NCD route for its borrowings because they are unable to get finance from banks. No doubt these NCDs are rated by agencies like ICRA but still there is a risk involved as in the past a number of reputed firms had defaulted on both interest payment as well as on repayment of bond amount on due date. NCDs’ listing on both BSE and NSE is a good suggestion as that provides liquidity to the investor. Another solution could be to allow for a premature withdrawal on some penalty. Unless the SEBI and other regulatory bodies keep a constant vigil it is difficult to ensure safety of investors.

Kolkata

The Thoothukudi incident is a lesson in how not to handle a popular protest. It is unthinkable and frightening to think that this kind of overreaction could happen in a democracy. The state government should give its decision to seal the Sterlite factory an irreversible finality by a Cabinet decision. It has become necessary to allay the fears that its decision in ‘deference to the sentiments of the people’ was an exercise in damage control and a knee-jerk reaction.

On their part, the courts should not overlook the incontrovertible fact that the Sterlite copper smelter polluted the air, water and land in Thoothukudi and reverse the decision for its permanent closure.

Proponents of re-opening of the factory make the flawed argument that the country cannot afford to lose a few thousand jobs and 40 per cent of copper production and put the so-called growth above the citizens’ quality of life. It would be folly to endanger the health of the local residents and the environment for the sake of “ease of doing business”. The “ease of living” with clean air and water cannot be subservient to profit-making by rapacious companies.

If the ruling elites are so keen on having polluting industrial units, they can have them in their backyard, not in localities where impoverished people live. For right-thinking people, the choice between “polluting industry” and ‘’the people” is not difficult to make. The ladder of development cannot be placed on coffins!

Maruthancode, Tamil Nadu

With reference to “Leave cantonment alone” (May 30), the writer has rightly pointed out the need for keeping the cantonment roads ‘out of bounds’ for general public stressing the need for security. As military personnel are posted elsewhere, their families live safely in the enclaves and it is not fair to disturb them. The political class wants to lay their hands even in prohibited areas to take credit by making it ‘thoroughfare’ by opening for general public without realising such an act is fraught with danger.

Bengaluru

The two-day nationwide strike resorted to by bank unions might have been avoided had the IBA initiated timely measures and undertaken fair wage negotiations with the unions. The digitalisation of banking transactions and availability of limited services from non-participating private and foreign banks may dent the impact, but the overall loss to the exchequer on account of disruption of high volume of trade transactions would be substantial.

Earlier, bank employees were considered to be the highest paid in the society and that position now has been taken over by central and state government employees, thanks to their collective bargaining strengths. IBA as a conciliatory agency of bank wage settlements should balance the present beleaguered position of banks and the sustainability of employees and amicably resolve the dispute immediately.

Bengaluru

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