AI-driven trading

This refers to ‘Will markets hop on the AI bandwagon’ (November 14). The growing use of AI in trading has provided a substantial advantage to certain institutional and high-net-worth individuals, often at the expense of retail traders. Colocation services, where servers are positioned close to exchanges, have further intensified this imbalance. Successful stock and derivatives trading depends on quick access to real-time trading data and supply-demand metrics that influence each other dynamically. When only a select few have the advantage of AI-driven algorithms, it creates a skewed playing field that enables faster decision-making and trade execution for those with access.

According to a recent SEBI study, one significant reason for over 90 per cent of retail investors incurring losses in F&O trading is the lack of a level playing field, an issue that requires careful attention to ensure fair and orderly trading practices.

Srinivasan Velamur

Chennai

Hiking property tax

This has reference to ‘Is boosting revenue via higher property taxes viable?’ (November 14). Increase in property tax is the favourite source of income for State governments just as all Union Budgets have a provision for increasing duty on cigarettes. These income streams keep increasing even if there is no change in tariffs due to sheer hike in volumes. However, tax on agricultural income is to be introduced one day, and to start with, a small tax may be explored only for cash crops, leaving aside staple crops like rice and wheat.

M Raghuraman

Mumbai

Halting bulldozer justice

At a time when bulldozers have become a symbol of summary justice, the apex court’s unequivocal reiteration and defence of the basic principles of natural justice while confirming that justice cannot be found at the end of a bulldozer, and that punishment without due process violates fundamental rights, came as a whiff of fresh air. Using its power under Article 142 of the Constitution, the court has laid down guidelines for the demolition of property, including providing a personal notice and time for appeal. It is time governments adhere meticulously to basic principles laid down in the Constitution.

M Jeyaram

Sholavandan, TN

Food management

This refers to ‘Food bites’ (November 14). The sharp rise in prices of edible oil and vegetables, especially tomatoes, has contributed to the spike in food inflation. With better supply of these perishable items, the prices of some food items prices will cool down. But what should worry policymakers is that core inflation was at a 10-month high and services inflation also rose steeply. Any hope of rate cuts by the RBI has been dashed for now. Policymakers need to focus on better food management to rein in prices.

Bal Govind

Noida

Financing MSMEs

The PLI platform to ease financing of MSMEs is a timely intervention. A contiguous fine tuning of the policy of lending ought to be the next step. Big companies created the NPA syndrome, but it was MSME borrowers who faced denial of additional credit limits. This was largely because MSMEs’ large customers, including public sector units, defaulted in paying for supplies made. The sector has long borne the yolk of indifferent financing.

R Narayanan

Navi Mumbai