Letters to the editor dated Oct 1, 2019

With reference to ‘Social enterprises freed of funds constraint’ (October 1). The proposal to set up social stock exchangesis a novel idea, which gives large-scale impetus for garnering high impact investments into India. The SEBI Alternative Investment Funds guidelines pave the way for capital investments by social venture funds under category-I in socially viable projects. The ‘Stand-up India’ scheme and many other innovative financial products have been designed for the benefit of social enterprises in the SME segment to have institutional access for working capital & long term funds. However, these entities are still facing liquidity problems due to their inability to provide collateral securities and establish viability standards to the satisfaction of banks and investors. Proposed SSEs would augment hassle-free fundraising by these entities and entail good market reach for prospective investors in social projects.

Bengaluru

This is with reference to ‘Financial regulation should be more nimble’ (October 1). The author vividly brings to fore that the regulatory bodies of the financial markets are not up to the mark in their regulating mechanism and they ought to be re-engineered or replaced to do away with inefficiency and turmoil in the controlling of the financial markets and to augment the strict compliance of the rules of the concerned regulating body. Of course, as is advocated by the author, inadequacy of knowledge, ability and willingness of the parties are the causes for non compliance. The deregulation of tariff rate by the IRDA with general insurance companies was a wrong move, and eroded the margin of insurers by moving for lowest premium in the name of retaining the market.

Sivakasi

This is with reference to ‘Innovation and teamwork will fuel India’s growth: PM’ (October 1). Despite the vast potential in terms of intelligence and youth power, we have not contributed much to the world in terms of inventions and new ideas. The birth of Skype 11 years ago in Tallinn, Estonia, has led the way for the small country to become a world leader in technology. Why then, can a vast country like India not progress in innovation and research. There are many reasons for this failure, one of the most important being that our education system does not encourage innovation and research. Second, the lack of government support for research and innovations also puts constrains on talent. Our government/leaders mostly believe in short term gains and hence are not able to tap the potential of youngsters/innovators and scientists and invest in research and technology. Due to lack of government support and other hurdles, many of our scientists/engineers are migrating to foreign lands and contributing to their advancement.Fourth, our Prime Minister should prove that he is different from his contemporaries in encouraging invention and innovation. Finally, if we want development, economic growth and create employment opportunities for millions of young people of the nation, we cannot go rely on age-old methods. There is no dearth of talent in India, but a giant push is required to tap this talent.

Thane

This refers to ‘Small savings’ interest rate to remain unchanged for Oct-Dec quarter’ (October 1). It was nice to learn that the government has decided not to change the interest rate on various small saving schemes like the NSC, the Public Provident Fund, and the Kisan Vikas Patra. In fact, this development must have come as a relief for the senior citizens of the country, who were apprehending the lowering of the interest rates at least by 10 bps, in keeping with the earlier recommendations of Shyamala Gopinath Panel.

However, if the forthcoming elections in Maharashtra and Haryana ‘prompted’ the Centre not to cut the interest rates, then those largely dependent on the interest from these small savings schemes, should not expect any rate cut in the next quarter either, as other forthcoming elections may once again come to their immediate rescue.

Panchkula

COMMENT NOW