Curb ‘front running’

This refers to to ‘Front running in Quant MF, SEBI’s action can undermine investor trust’ (June 25). It is very disappointing that the officials and dealers of Quant MF, which has been highly rated by the market and trusted by investors, have acted unethically by indulging in “front running”. SEBI’s action may “undermine investor trust” in the impugned MF entity, but the regulator’s action of conducting search and seizure operations on finding irregularities is necessary to initiate corrective measures and to send a message to the entire MF industry that violators of rules and regulations will be dealt with severely.

Kosaraju Chandramouli

Hyderabad

Delhi’s water crisis

This refers to ‘Who’s responsible for Delhi’s water crisis?’ (June 25). Delhi is in the throes of a severe water crisis exacerbated by scorching temperatures nearing 50 degrees Celsius. Since Delhi relies heavily on its neighbouring States to meet almost 90 per cent of its drinking water needs, unfortunately politics has taken centre-stage and blame games are on between the ruling and opposition parties. Population growth and economic development have together put pressure on water resources. Reports suggest half a century ago, per capita water availability in India was 2.5 times more than the current level — implying that authorities failed to keep the water supply apace with the growing demand.

N Sadhasiva Reddy

Bengaluru

Deposit insurance

This refers to ‘Bank deposits are growing, but how well are they protected?’ (June 25). With the rise in interest rates, deposits are also on the increase. However, depositors need to be assured about the safety of their money parked with banks. Statistics reveal that the coverage of deposits under DICGC insurance is not commensurate with their growth.

As per extant norms, if a bank goes into liquidation, DICGC is liable to pay to the liquidator the claim amount of each depositor up to the limit prescribed within two months from the date of receipt of claim list from the liquidator.

In the recent past, no public sector bank has gone into liquidation. Alternatively, the RBI finds a way to merge weaker banks with the stronger ones, as has happened recently.

RV Baskaran

Chennai

Effective governance

The Prime Minister’s call for consensus signals his commitment to honouring the people’s mandate. In the previous Lok Sabha, the government faced minimal opposition due to the disarray among opposing parties. The unity displayed by the INDIA bloc resonated with voters, who expect them to act as an effective check-and-balance in Parliament. Despite differing ideologies and occasional conflicts, their parliamentary performance must reflect the electorate’s wishes. The Prime Minister has rightly emphasised on the need for decisive actions, resonating with the public’s desire for effective governance amidst concerns like unemployment and inflation.

Vijaykumar HK

Raichur