Letters to the editor dates February 8, 2021

This refers to ‘Limits to an accommodative monetary policy’ (February 8). Though the onus to control inflation rests with the RBI, there are many economic indicators which are in conflict to each other, which makes the task of the RBI a challenging one. With fiscal deficit estimated at 6.8 per cent of GDP and market borrowing budgeted at ₹12-lakh crore, interest rates need to be kept under control for the government’s borrowing programme to go smoothly.

Though the MPC had decided to pursue an accommodative policy, the policy measures indicate conflicting signals. On the one hand, through a calibrated increase in the CRR, liquidity is squeezed out of the system. And, on the other steps like relaxation in the MSF and in TLTRO facilities are seen as measures to further ease liquidity. The rise in 10-year paper yield post the MPC announcement proves the point. Hence, it is time for the government to act on fiscal side of the policy by ensuring that tax revenues are streamlined and non-tax avenues like disinvestment receipts and monetisation of assets are given a fillip to bring fiscal deficit under control

Chennai

The devastating glacier burst in Uttarakhand, apart from the flooding and calming of many lives, has severely damaged hydroelectric projects and left behind a trail of destruction. Geologists point out that such glacial bursts are quite common. There are huge lessons for humanity to learn from such occurrences. Humans, in their quest for economic development, have paid scant regard for climate change, global warming, and greenhouse effects.

Right now, serious measures are required to thoroughly check the feasibility of ecosystems in areas like Uttarakhand and elsewhere across the world. Himalayan nations like Nepal and Bhutan have been following eco-friendly growth models. Without any question, greater focus on environmental issues is needed to make the planet liveable for the generations to come.

Mumbai

SEBI (Listing Obligations and Disclosure Requirements) Regulations mandate public listed companies to update investor-related information on its website. The information include those related to their business, code of conduct, directors’ details, whistleblower policy, grievance redress mechanism, etc.

There a suggestion to amend regulation 46 of SEBI (LODR) Regulations 2015 to include press releases, archives/transcripts of webcasts, and earning calls as an optional requirement to be uploaded by the companies. This will benefit analysts, investors, the media, and other relevant stakeholders.

Bengaluru

This refers to ‘Markets on a roll’ (February 8). Indeed, the stock market does not reflect the pessimism prevailing in the economy after the outbreak of the pandemic. However, consumption demand slowly moving towards normalcy and the government’s relief package, capex and budgetary support have boosted the morale of both domestic and foreign institutional investors.

Also, the commencement of the Covid vaccination process has boosted the overall confidence of the investors and the corporate sector.

Sivakasi

This refers to ‘Selling family silver is a lazy allegation, says Sitharaman’ (February 8). How can the Finance Minister justify the proposed divestment of successful PSUs like BPCL and LIC. Does this not tantamount to selling its ‘family silver’? However, one can appreciate the government placing Air India, a white elephant, on the disinvestment list. But, sadly, it is still seen struggling hard to find a buyer.

More importantly, why solely blame state-run companies. What about our public sector banks? Has the government not always been ensuring uninterrupted supply of ‘financial oxygen’ to them?

Bengaluru

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