With reference to the editorial, ‘Lessons on literacy’ (December 21), we would like to clarify that as per section 15JA of the SEBI Act, all sums realised by way of penalties under the Act are credited to the Consolidated Fund of India. It would be incorrect to say that SEBI deposits these into an investor protection fund. SEBI has, however, created an Investor Education and Protection Fund from its resources which undertakes the following initiatives.

Since 2010, we have implemented a unique model of empanelling resource persons with specific qualifications: they are given four days of intensive training covering many topics such as financial, banking and insurance products, need for financial planning, principles of compounding, time value of money, budgeting, investment, retirement planning, caution against Ponzi schemes, etc. They conduct workshops in the local language, free of cost for the participants, and also distribute booklets on financial education in local languages. So far, over 1,200 resource people have conducted over 30,000 such workshops across India, covering about 470 districts. This initiative has covered over 22 lakh people and the efforts are continuously made to reach more people across the entire country.

SEBI aims its financial education initiatives at specific target groups for an effective programme. The target groups include school children, college students, executives, homemakers, retired persons, etc. Separate material is available in Marathi, Tamil, Telugu, Hindi, Assamese, Bengali and Malayalam. Expenditure for the entire initiative is met from the SEBI Investor Protection and Education Fund.

N Hariharan

Chief General Manager, SEBI

Flip side

With reference to ‘Now, research in India’ by Shashank Tripathi (December 22), there is a flip side to India becoming the preferred R&D hub. Since India’s “global talent at competitive rates” is one of the reasons for this, it points to India’s inability to utilise such talent for its own R&D drive. It is like allowing foreign counties to dig our gold mines and take the gold for their use.

Are our national laboratories attracting the best talent available? Why are we, the second most populated country, bereft of Nobel prizes in science? With the government spending less than 1 per cent on R&D, the answer is obvious.

YG Chouksey

Pune

Silent death

This refers to your editorial, ‘Why write off Nairobi’ (December 22). The outcome of the Nairobi meet does not augur well for the depressed farmers and consumers stricken by extreme poverty. The development agenda of the Doha Round has been given a silent death by the rich countries. India has miserably failed to secure any commitments on Special Safeguard Mechanism and a permanent solution to the issue of public holding of foodgrains for food security.

The only silver lining is that developed countries have agreed to phase out farm export subsidies. But they have not made any commitment to cutting down the enormous subsidies they give for boosting farm production.

Philip Sabu

Thrissur, Kerala

RBI and NBFCs

This refers to, ‘RBI keeping close watch on systemically important NBFCs’ (December 22). During its existence, RBI has been performing the role of protector of India’s financial sector, going beyond its mandated role and assuming for itself a developmental role additional to the normal core functions of central banks elsewhere. This approach has had an impact on its resources, including manpower, and while RBI has to own up for the weaknesses of the financial sector, it has not been getting adequate support from the government or other stakeholders.

NBFCs, cooperatives and MFIs may need regulatory and supervisory support which may not be amenable to technology-enabled solutions that work in developed countries. By the time off-site financial statements show signs of incipient weaknesses in such institutional arrangements, it may be too late. The remedy may lie in more frequent on-site inspections and scrutiny of books.

MG Warrier

Mumbai

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