Letters to the Editor dated December 12, 2019

Apropos ‘Incognito complaints’ (December 11). Earlier, the SEBI-appointed TK Viswanathan panel had given a report on fair market conduct and reviewing the key securities market laws. The follow-up has been slow, but constant vigil is the price of trust and stability of any market.

Mistrading is as old as modern markets and regulators have tried to keep pace by honing tools.

SEBI could do well with the power to intercept calls. The famed case of Rajat Gupta of McKinsey found quick closure and a prison term for him, essentially on intercepts.

Navi Mumbai

This refers to ‘Citizenship Bill is deeply disconcerting’(December 11). This Bill is not only discriminatory but also poses huge danger to our national security. As mentioned in the article, if this Bill becomes a law, then it may be quite easy for an Afghan, Bangladeshi or Pakistani spy to become an Indian citizen. Besides, how will the government and the officials deal with the bureaucratic nightmare of confirming the applicant’s religion in their country of origin? This government, which considers itself the better guardian of national security, will find itself on the wrong side of history if security establishments are compromised as a result of this short-sighted and discriminatory law.

Kozhikode

This refers to ‘SBI’s bad loans up by ₹11932 crore in FY19’(December 11). While on the one hand, the government and the banking regulator are working vigorously to clean the loan books of the banks, on the other, the Risk Assessment (RAR) carried out by the RBI has exposed considerable divergence in the accounting of NPA and profitability. Such large divergence in accounting and reporting of asset classification is negatively impacting the confidence of depositors and investors.

The concurrent audit, periodical inspections and statutory audits have failed to bring out the true picture of the income recognition and the classification of the assets. This denotes that the top management and the board of directors of the banks do not meticulously examine financial statements. Responsibility and accountability need to be fixed on the erring human capital to avoid the recurrence of such acts.

Instead of carrying out the risk assessment before, rather than after, the close of the financial year, as it will enable the bank to make necessary changes in the books in the current accounting period itself, and present a fair and true balance sheet.

Kottayam

Turkey is ready to export onions to India to fulfill the proportionate supply-demand stock. This could immediately reduce the price of onions. Importing is better than selling limited stock at a lower subsidised price. Either way, the government has to shell out taxpayers’ money.

A national seasonal timetable for growing vegetables, fruits, flowers to optimal stocks with coordination of all States and UTs can also help growers, consumers and sellers.

Secunderabad

The controversy surrounding the issuance of electoral bearer bonds used as an instrument for political funding needs immediate attention. Bearer bonds neither contain the holder’s personal information nor details of rightful owner, as they are freely transferable. Thus, these bonds may be used for tax evasion, money laundering and promotion of black money. If these bonds are introduced for the purpose of genuine political funding, it is not clear why they are made to be “bearer” instruments. In an era when corporates are trying to endear themselves with political parties to derive rich favours, a tint of anonymity attached to these bonds will lead to misuse of this instrument for gaining political favours.

To create a level playing field, it is suggested that a ‘public funding mechanism’ be created to eliminate the unholy nexus between corporates and politicians.

Chennai