Keeping demat accounts active

This refers to ‘How to leverage the demat revolution’ (May 31). It is indeed encouraging and welcome news that as many as 5.1 crore new demat accounts have been opened in the last two financial years in India. But the bigger task would be to keep the majority of them active. Here, the role of depositories is more than critical, their sole aim should not be to earn commission, but engage more deeply with the small retail investors and educate them about all kinds of financial assets.

For becoming a more mature economy, the need of the hour is to have individual investors from Tier 2 or 3 cities and even semi-rural areas investing in all kinds of financial assets. These retail investors need to be taught that the stock market can be volatile and, therefore, need to know how to invest in other financial assets as well.

Bal Govind

Noida

Higher risk appetite

The young generation has a greater appetite for risk than the earlier generations. While the opening of crores of new demat accounts may be celebrated, it should also be noted that many of those who have opened the accounts are not investors but treat the stock market as an easy way to make easy money.

Notwithstanding the risks involved, the prospect of making huge amounts of money in the shortest possible time acts like a magnet to them. The crash of cryptocurrencies should serve as a warning to them. Therefore, G-secs with seven- and ten-year tenures will not appeal much to the new breed of investors. As for the risk averse older generation, bank deposits are the preferred destination for parking their money because of their safety and liquidity.

Anthony Henriques

Mumbai

Congress takes loyalty line

The Congress nominating Rajya Sabha seats to candidates who owe unqualified allegiance to the Gandhi family is true to its form. It is wishful thinking that the so-called Chintan Shivar shall bring any paradigm shift in the party’s governance, which pledged according meritocracy recently. This will further dent the credibility quotient of the leadership, which is already at its nadir. No party worker will take them seriously. In the coming days, jumping off the Congress’s sinking ship shall continue more speedily.

The Upper House and gubernatorial posts are invariably at the whims and fancies of top political masters and are, at times, snapped up by criminals with deep pockets. The outcome is that debate and discussions are supplanted by rowdyism in the House.

Deepak Singhal

Noida

IMD must get scientific

Apropos ‘Storm over IMD’s monsoon onset call’ (May 31). On several earlier occasions too, the IMD’s weather prediction has not matched well with the actuals. Moreover, the native farming community has its own method of planning their agrarian activities based on ancient calculations, learnt from their ancestors. It is, therefore, suggested that IMD base its weather prediction on confirmed scientific data, in order to ensure that its forecasts are taken seriously.

Rajiv Magal

Halekere Village, Karnataka

Predictions and forecasts

Apropos ‘Storm over IMD’s monsoon onset call’ (May 31), many a times, predictions and forecasts are based on information, assumptions and perhaps intuition which also evolves from past experience. Astrologers, weathermen and central bankers who are professionally authorised to make predictions and forecasts, while being transparent about facts and figures they reveal, do not normally give out all information they rely on for their observations.

The private weather agency joining issue here with IMD could have proved their sharper skills by making clear alternative predictions.

MG Warrier

Mumbai

The thrust of IPEF

This refers to ‘Tread with caution’ (May 31). Indeed, India’s consent to be a part of the Indo-Pacific Economic Framework, a grouping of 12 countries led by the US, is welcome. IPEF member-countries contribute to 40 per cent of the global GDP and the key objectives of the group are free and fair trade, supply chain resilience, data sharing, economic growth, clean energy, de-carbonisation, and anti-corruption measures. But it appears that the US’ intention is to overtake China and reduce the latter’s hold over the resourceful Indo-Pacific region.

Trump pulling out from the Trans Pacific Partnership and supporting bilateral agreements will make member-countries doubt the stability of the new agreement.

NR Nagarajan

Sivakasi, TN

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