Letters to the editor date October 21, 2020

| Updated on October 21, 2020

Protecting retail investors

Apropos ‘Retail investments aren’t dumb money’ (October 21), it is indeed true that knowledge is not limited to HNI clients and it is wrong to believe that retail investors don’t have an understanding of financial products. Entering the market through the accredited investor category is a good idea, especially for young retail investors from Tier 1 and 2 cities. There is no need for SEBI to be too worried about retail investors and deny them access to certain market products. SEBI cannot work on the premise that retail investors can be fooled easily. They are capable of making informed choices.

Bal Govind


Restrictions won’t help

Mis-selling of risky financial products is certainly worrisome. However, rather than prevent investors from buying certain products, SEBI needs to increase awareness of potential risks in such products among investors. SEBI can also hold the seller accountable and the latter should ensure that the buyer has been told the pros and cons of an investment opportunity before concluding a sale. Creating hurdles in buying certain investment products will only result in grey market activity by sellers and buyers who are determined to go ahead with such transactions.

Nandakumar V


Financial literacy

Irrespective of the category investors, trading in the capital market is speculative and risk-prone in the absence of financial literacy and market knowledge. Every time micro reforms are initiated, it is quite possible that one section of investors may benefit at the cost of others. Also, too much protectionism may dampen the investment spirit, beside loss of market opportunities. The root cause of the problem lies in limited knowledge of retail investors of the financial terms and their poor assessment before investing and trading in the capital market. The Investor Protection Fund created by government, provides for conducting awareness camps regularly by the regulator to educate the investors about the intricacies in market mechanism. However, of late such initiatives are seldom seen.

Sitaram Popuri


Festivities amidst Covid

Prime Minister Modi has rightly made a clarion call to the people to continue with Covid safeguards and exercise restrain during the festival season. Precaution will remain the only treatment until a vaccine is available. From the onset of the corona pandemic, there has been a tendency to either inflate or deflate its effects. It is imperative on the part of the government and social media to propagate authentic information. Physical exercise, yoga, and immunity-boosting food will help keep people fit in these pandemic times.

Vijay Singh Adhikari

Nainital, Uttarakhand

The Quad squad

Australia’s decision to join India, the US, and Japan in the Malabar naval exercises in the Arabian Sea and the Bay of Bengal assumes significance against the backdrop of the simmering Ladakh face-off. Australia’s participation in the naval exercises lends it the image of “the full Quad squad”. This is the first time that the Quad members are engaging at a military level and the development may be a harbinger of formation of a regional defence alliance.

Chinese aggression makes India explore and strengthen every international alliance. Given that China respects power and strength, strengthening the Quad is of paramount importance. Beijing believes that the Malabar naval exercises are aimed at undermining its influence in the Indo-Pacific region. The strength of the partnership that will be reflected in the Malabar exercises will enable India to broaden its option with China. There is no need for the Quad to elevate its status to that of a military alliance. Instead, it could be used to signal that quad nations intend to help each other in the event of tension or armed conflict with China.

Venu GS

Kollam, Kerala

Published on October 21, 2020

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