Buyback of securities
The article ‘Implications of RBI’s securities buyback’ (October 28) discusses how securities buybacks can serve multiple economic purposes. In its recent monetary policy, the RBI maintained the repo rate, citing geopolitical factors that, if they escalate, could drive inflation through rising crude oil prices and supply chain disruptions. Introducing securities buybacks may counteract this stance, potentially fuelling inflation.
While buybacks can support government efforts in managing short-term interest rates and reducing overall short-term debt, thus aiding fiscal deficit management, other tools, like RBI dividends and optimised GST rate management, are also available to streamline fiscal policy. Consequently, securities buybacks are one of several tools at the RBI’s disposal and may be seen as an ad hoc approach to support government finances and to stabilise interest rates. Advance planning could minimise its necessity.
Srinivasan Velamur
Chennai
Delhi’s pollution blues
This refers to ‘Delhi air pollution persists in ‘Very Poor’ category, thick smog engulfs parts of city’ (October 28). It is rather unfortunate that the same old story continues to be repeated in the NCT of Delhi, with ‘no light at the end of tunnel’ and marked by the usual blame game. Notably, all this comes alongside persistence of toxic foam on the Yamuna River in the Kalindi Kunj area, indicating high levels of water pollution as well. It’s time for all those concerned to urgently conceptualise an action plan for a long-term solution to the problem.
SK Gupta
New Delhi
No clarity on ideology
The launching of a new political outfit (TVK) by actor Vijay was on expected lines. The first event of the party was successful if gathering of people is any indication. However, the ideology of the party is not clear. EVR is one of the mentors of the party but it was announced that the party does not support atheism, the main plank of EVR.
The party has expressed its reservation on NEET but has not spelt out its approach to teaching Hindi as a language. There is also no hint about its outlook on national issues.
M Raghuraman
Mumbai
Sell-off by FPIs
This refers to ‘FPIs’ $12 billion sell-off in Indian equities in Oct doesn’t warrant panic, say experts’ (October 28). The $12 billion sell-off may be small in percentage terms, but by itself it is a significant amount — in fact, the largest monthly sell-off in recent times.
While Chinese stimulus package coupled with attractiveness of cheap Chinese stocks is a major reason for the outflow, other factors such as valuation concerns of Indian equities, rising inflation, poor performance of some major companies, uncertainties arising from the US Presidential election and geopolitical tensions appear to have triggered the selling spree. .
Kosaraju Chandramouli
Hyderabad