Fed moves
Following the hint from US Federal Reserve Chair Jerome Powell about the possibility of rate cut, equity markets had surged world over, including India’s Nifty and Sensex.
While the Fed rate actions usually set off a chain reaction, it remains to be seen if the RBI will follow suit, as its policy actions are usually determined by domestic factors.
Though the lower rates in advanced economies like the US will help increase capital flows into markets like India, investors need to exercise caution as the valuations of Indian equities are stretched.
M Jeyaram
Sholavandan (Tamil Nadu)
New AMFI rules welcome
The lead news ‘AMFI sets new rules to curb front running at AMCs’, (August 28), coming in the aftermath of unsavoury reports of front running at fund houses, based on detailed confabulations among various stakeholders and authorities is welcome.
That the authorities are alive to the need for vigilance at all levels is appreciable. The phased manner of implementation of the new norms will surely give time and space to review and revisit, if need be, any measures.
Jose Abraham
Kottayam
Bengal on boil
Apropos of the news ‘Kolkata rally turns violent as protestors and police clash’ (August 28) highlights uncontrolled Bengal. Public outrage was waiting for outlet to express anger over the young doctor’s horrific rape and murder.
The Chief Minister had herself marched on streets in this episode fully knowing beforehand that the entire nation, not just Bengal is beyond boiling point. Mamata Bannerjee has lost public support and particularly youth across the country is furious.
The previous Sandeshkhali rape cases involving TMC leaders, the violent Assembly, Lok Sabha and even panchayat elections, lack of development, ignored North eastern part of Bengal, all sum up the public wrath with ferocity.
Mamata Banerjee’s government is fast losing its credibility.
Vinod Johri
New Delhi
Advantage shareholders
Apropos ‘Right suggestions’ (August 28), a rights issue benefits existing shareholders, as they get shares at a discounted price and retain their voting rights. It is also the quickest method of raising additional capital and honouring the loyalty of the existing shareholders towards the company and not diluting the equity base of the company.
But the undue delay in processing the rights application is a stumbling block, so companies now are keen on making allotment to qualified institutions to raise funds.
But in the larger interest of the shareholders, procedural delays must be avoided and flexible norms must be adopted in rights issues.
Facilitating promoters to renounce their rights in favour of strategic investors in rights issue will ease the rights issue route further.
NR Nagarajan
Sivakasi