Letters to the editor dated September 13, 2021

This refers to the editorial ‘T+1 the way to go’ (September 13). Effective performance of the stock market revolves around a robust technological platform which serves as the key when it comes to meeting the aspiration of investors, both retail and institutional.

Introduction of T+1 settlement is the right move in this context. The success of algorithmic trading, interoperability, smart order trading (SOR), high frequency trading, etc., revolves around technological upgradation.

Speedy implementation of various stock market techniques may sometimes lead to technical glitches impacting the trader community in different ways. Post implementation of ‘interoperability’, the shutdown of NSE due to system issues forcing investors to hurriedly close their positions a few months back is a case in point. The enhancement of server performance in terms of scalability, bandwidth, response time, interconnectivity, etc., are key to the success of T+1 settlement implementation. Several parallel runs need to be conducted before the system is fully operationalised.

Chennai

This has reference to ‘Set up regulator for hospitals, revise GST’ (September 13). There is no control or regulatory system for hospitals though there has been a huge spurt in business especially after Covid. There is no stipulation for the hospitals for essential services to be offered, type of diagnostic facilities to be provided, disposal of hospital waste, etc.

The only approval that is relevant for the sector is the permission obtained at the time of setting up of hospital under the Clinical Establishment Act, 2017 and thereafter the hospitals can run the way they want.

The fact that many hospitals do not have even oxygen facilities came to light recently. There is no control on the pricing by hospitals and the law of supply and demand works perfectly in this business. For in-patients the charges are very high and some of the tests and medicines can best be avoided.

While this sector should be more corporatised and flourish it is time they became service oriented too. There is a need for a regulator for hospitals from both service and pricing point of view and the government should look into this.

Mumbai

It refers to ‘Large scale privatisation of banks will hurt’ (September 13). Privatisation is not the panacea for all ills. If that was the case, no private bank would have faced bad times. YES Bank is the most recent example. Yes, depositors are comfortable with public sector banks and after the surge in private sector banks, the service standards of the former have also improved significantly.

Public sector banks have seen significant NPAs in the last few years but privatising them will not solve all their problems. A merger of a few smaller public sector banks have taken place in the last year or two and that should be given some time to revive and produce the results.

And privatisation should only take place with a bank or two rather than on a mass scale. Because not only public deposits should be protected but employees’ interests should also be taken into account.

Noida

This has reference to the report ‘BSNL’s 4G rollout: TCS may emerge as unanimous choice’ (September 12).The Telecom Ministry should not further delay the 4G rollout as it will hurt BSNL badly. Since the future of Vodafone Idea is right now uncertain, it is for BSNL to get ready to grab as many new customers (that is, of Vodafone Idea) as possible. In other words, BSNL has to gear itself for tough market competition in the coming years as RJio and Bharti Airtel will make efforts to capture as much market as possible.

Customers certainly do not wish that oligopolistic conditions are created in the telecom sector. They really wish that all four companies — BSNL-MTNL, Bharti Airtel, Vodafone-Idea and R Jio — do reasonably well and provide service to a growing market.

Pune

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