Corporate governance lapses

There are several instances of corporate governance failures in India on account of factors like internal nexus between management and the board, collusion of auditors with the management, corrupt business practices, regulatory failure, etc. The Satyam fraud, ICICI board failing in its fiduciary responsibility, IL&FS mismanagement, etc., are case in point. In spite of several such developments pointing at control failures, the remedial measures seem to be still ‘work in progress’.

The latest case involving NSE tops as far as mismanagement goes. Here is a case where the market regulator SEBI received a complaint from a whistleblower as far back as in 2015 but decided to put the case on the ‘back burner’ in spite of several warning signals like out-of-turn appointment of Anand Subramanian allegedly at the instance of a yogi, co-location scam leading to market manipulation, abuse of power favouring a select few etc.

The sudden exit of Chitra Ramakrishna should have put regulators on alert, instead she was awarded with an attractive severance package. All these actions ultimately led to the enrichment of ‘select few’ at the cost of common investors. The so-called ‘watch dogs’ like Internal board, SEBI and auditors had grossly failed to discharge their responsibilities in their fiduciary capacity. It is expected that the investigating agencies will bring all those involved to book and make them pay for the damages caused to the system.

Srinivasan Velamur

Chennai

Controlling inflation

This refers to ‘RBI must start focusing on inflation control’ (March 7). In the context of the unpredictable situation emerging from Russia-Ukraine conflict, the caution has not come a day earlier. At least since the pandemic started stalling economic growth and affecting the common man’s livelihood, in India, fiscal and monetary policies have been functioning in smooth harmony.

Though India cannot think of de-dollarisation or for that matter excluding any other major currency for cross-country transactions, time is opportune to realign the constituents of our domestic reserves. There’s no escape from digging out and mainstreaming domestic gold stock to make it part of productive assets in the system. This will bring down import bills and, in the long term, improve export income.

MG Warrier

Thiruvananthapuram

RBI must act

Time has come for the the RBI to introspect on its current accommodative stance in its monetary policy, which is focused more on boosting growth than controlling inflation. Of course, regaining pre-pandemic growth levels is vital and an easy money policy may augment the flow of bank credit. But private investment and consumption demand continue to be weak. As the Consumer Price Index is climbing, the MPC must focus on inflation control and hike the repo rate.

Russia’s invasion of Ukraine is causing disruptions in the global supply chain for oil, gas and agro commodities, and this is adding to inflationary pressures.

NR Nagarajan

Sivakasi, TN

Rising crude oil prices

Whenever there is an increase in global crude oil price, the government is prompt in passing it on to the public — but any decrease in prices is seldom passed on. India’s tax structure on petrol and diesel is flawed and complicated, aimed at exploiting the consumers. India has not reduced domestic fuel prices when international prices were at historical lows for years and oil companies were still earning profits. The ultimate losers are customers . Transport Minister Nitin Gadkari said that India would switch over to electric vehicles by 2030. Is it realistic and possible?

Girish R Edathitta

Pathanamthitta,Kerala

Impact of Ukraine conflict

In a globalised world, no nation is an island. The ripples created by the conflict in Ukraine is going to adversely affect nations like India more than the others. Consumption of edible oils is very high in India and the supplies of sunflower oil from Ukraine may take a long time to normalise, creating a situation which would be difficult for the government to handle.

The rise in world food prices however may benefit the Indian farmer in getting better prices for his produce. How much benefit reaches him is another matter. Unless the conflict ends soon, the prospects of further distress to the vast majority of Indians is visible on the horizon.

Anthony Henriques

Mumbai

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