Letters to the editor dated March 19, 2021

This refers to ‘Households must scale up financial investing’ (March 19). As far as stock market investing is concerned, most of the investors in India still view it as a gamble due to erratic movement observed in Sensex/Nifty.

Though factors like liquidity, monetary stimulus, economic recovery, etc., are cited as reasons for the market boom, the predominant factor which accounts for the surge is the funds brought in by FIIs and FPIs. Also, this revolves around the policy decision taken by US Fed in terms of interest rates.

As far as stock market investments are concerned, there is a herd mentality and most of the investors resort to panic selling during the bear phase of the market which goes against the dictum advocated by Warren Buffet: “Be fearful when others are greedy and greedy when others are fearful.” The fact that hardly one per cent of investors resort to investing in the stock market proves that emerging markets like India need to undertake a massive literacy programme to harness the intrinsic strength in terms of huge investor base which has the potential to bring in stability to the market.

Chennai

Apropos ‘Small units are big growth drivers’ (March 19), MSMEs play a major role in both economic growth and employment generation. The government has provided many sops to assit this sector as much as possible in the last few years, especially during Covid.

But there are few more steps that the government can take to ensure that MSMEs’ growth remains on track and they continue to help the economy back on track. MSMEs belonging to certain sectors should be incentivised to set up base in coastal areas from where export/import becomes smooth and seamless for their operations. Also, unskilled workers should be imparted some training so that they are better equipped to take on bigger responsibilities.

Noida

This refers to ‘Compliance deficit’ (March 19). The timely survey piloted by a former chairman of SEBI on corporate governance aptly depicts the subdued levels of seriousness by majority of the listed companies in its effective implementation. Once corporates file the required reports mandated in the listing agreement, there is no cross-verification of the factual position, unless there is some whistle-blowing or serious irregularities are unearthed in the functioning of the entity by lenders, suppliers or aggrieved shareholders. Promulgating volumes of regulations is of no use, unless there is stricter mechanism to prune the lackadaisical attitude of the dishonest entities. Regular surveys of this kind would help in taking corrective measures.

Bengaluru

This is with reference to ‘Textile Ministry to push for tariff cut and market access’ (March 19). Encouraging traditional garment makers/handlooms will also give a boost to this industry. Also, textile workers should be encouraged to sell their products online. This would require educating them about the Internet, e-commerce companies and other modern means of selling. NGOs can be entrusted with this job. Once a good market, both domestic and overseas, is created, the smaller textile units need not depend on middlemen and can directly sell their products to the end-users, which will help them improve their profit margins as well.

Thane

It is unfortunate that when the country is fighting Covid with restrictions and vaccinations, the number of cases is increasing again, especially in Maharashtra, Tamil Nadu, Kerala and Uttar Pradesh. This can be attributed to the complacent attitude by the people of not wearing masks and not following social distancing.

Added to this is the political rallies without any safety protocols. Unless the government ensures safety norms are adhered to, the risk of a second wave will linger.

Chennai

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