Letters to the editor dated August 6, 2020

This refers to ‘Raising the bar’ (August 6). Presently, the role of advisory services in the form of expert reports, opinion, market forecast and research analysis is outsourced from reputed agencies by institutional investors. Likewise, promoters of big corporate groups utilise the services of family offices for investment and advice and management of portfolio. Retail investors in the capital market have no choice except to follow the disclosures made by the companies on the regulatory platforms. If the advisory services — either due to lack of experience or infrastructure or with biased motives — compromise on their recommendations, the shareholders are bound to suffer.

The new code of conduct proposed by the capital market regulator is a step in the right direction to protect the larger interest of companies, suppliers, creditors and shareholders. The regulations should provide for criminal penalties to avoid entry of unregulated and unauthorised agencies in this segment.

Bengaluru

This refers to ‘Milk co-ops to the rescue of marginal farmers’ (August 6). Due to the Covid pandemic, demand for milk has been very low. With the upcoming festival season also bound to be on a low-key, milk farmers are severely affected and there is no respite in sight. Like other crop growers, the government will have to support milk farmers by way of incentivising co-operatives. The Anand model has been tried and tested over the decades and hence needs to be replicated in all pockets of the country.

Noida

Apropos ‘Employees matter’ (August 6). The consideration of HR aspects in divestment decisions is important. In case of the divestment resulting in a transfer of management control, its success depends on deft management of the culture change that might arise from the new leadership style.

In addition, the assurance of job security becomes a major issue for the affected employees. If these HR matters are not given due attention in disinvestment strategy and are not handled dexterously during the transition stage, the strategy will fail. Involving employees in the change process paves the way for a smooth and swift implementation.

Pune

This has reference to ‘Gold breaches ₹55,000 mark’ (August 6). According to e India Bullion and Jewellers Association (IBJA), the rates of gold price per gramme were ₹5,301 on July 29 and ₹5,549 on August 5; that is, an increase of ₹1,984 per 8 grammes, in just one week. Gold has been the best performing asset so far this year.

Yet, it is to be noted that consumerism has been converted into conspicuous consumption at the cost of the layperson. Gold sellers trap incumbents through offer of EMI payments and buyers are made to spend huge amounts unnecessarily. In the name of convenience, additional time was given for loan payment amid Covid-19, during which the price of gold rose.

People are also not getting the actual value when they trade in gold, since buyers are more concerned about the quality, the seller, etc. Yet, gold is the best performing asset so far this year!

Palakkad

This refers to ‘Manoj Sinha appointed new Lieutenant Governor of J&K’ August 6). It was interesting to learn that Sinha has been chosen to replace Girish Chandra Murmu, who was ‘asked to resign’ from the post on Wednesday. The timing of such a high-profile administrative ‘switchover’ could not have come at a worse time.

The immediate trigger for Murmu’s exit could possibly be his recent public comments on the restoration of Internet services in the Valley against the wishes of the Home Ministry. Moreover, his views on the timing of the Assembly elections may have also played a role.

As regards the appointment of Sinha, it may be significant to point out that he had lost out to BSP’s Afzal Ansari by more than 1.20 lakh votes during the 2019 Lok Sabha elections. Will a candidate who failed to win the confidence of the voters of his long-held Ghazipur constituency, be able to win over the people of the Kashmir Valley?

New Delhi

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