Oil imperatives

Given India’s oil imports at $74 per barrel in September, down from $83-84 in March, ICRA’s hopes of of ₹2-3 cut in retail price of petrol and diesel may not fructify.

In fact, Union Petroleum Minister Hardeep Puri may not let it happen as his heart beats for the state owned OMCs alone. The ₹2 cut in March had to do more with the Lok Sabha elections. However, the Oil Minister’s ‘generosity’ did not pay any electoral dividends. So it is unrealistic to hope for any cut in petro prices now, especially in the context of the Oil Minister’s remarks on the Oil Minister’s remarks on the financial condition of oil marketing firms.

SK Gupta

New Delhi

FAFT plaudits

Apropos the Editorial ‘Pat on the back’ (September 26), it is good to note that the Financial Action Task Force (FATF) has been appreciative of India’s recent efforts in dealing with illicit financing with improved skill sets through successful implementation of AML and Counter Terror Financing (CTF) and has certified India of the most credible destination for doing business.

However, India needs to focus more on the three critical areas stressed by FATF — addressing the inconsistency in identifying Politically Exposed Persons (PEP) through banking system, replication of AML and CTF in Payment Bank, RRBs, Rural Banks and NBFCs and to chalk out plans in curbing financial transactions of non profit organisations.

Also the number of convictions under the Prevention of Money Laundering Act needs to be enhanced and the pending cases need to resolved quickly.

RV Baskaran

Chennai

Compliance burden

This is with reference, ‘SEBI’s MF Lite should give retail investors a leg up’, (September 26). SEBI is proposing allowing asset management companies to offer hedge fund-like products for mom-and-pop investors as it steps up efforts to curb proliferation of unauthorised investment products.

SEBI has proposed a “new asset class” that will lie between a traditional pooled investment vehicle like a mutual fund and discretionary portfolio management service, according to a consultation paper on its website.

The capital markets regulator is engaged with the mutual fund industry to introduce ‘MF Lite’ regulations for passive funds, a move that will reduce the compliance burden and foster innovation.

A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Fund of Funds investing in ETFs. It is a welcome move.

S Muthulakshmi

Virudhunagar (TN)