Empower investors Kejriwal losing ground
Nilesh Shah’s “Economic future lies in financial markets” (May 22) recapitulates the events related to financial market development, its regulatory architecture, and proposes a reduced dependency on foreign capital with increased domestic investment for poverty alleviation. In sum, he stresses broadening and deepening of financial markets for a better future of the economy. He draws upon a key argument: does India’s stock market contribute to economic growth, and what proportion of stocks included in the index traded on exchanges can be a good representative of that growth?
To achieve sustained economic growth, judicial, executive and legislative processes embracing financial market development should be synchronised and made foolproof. This can reduce “free riding” and “information asymmetry” problems and enhance market transparency. The economy at large should benefit from a healthy interplay of the market, agents and participants. Regulators come to play when the economic behaviour of agents is tightened or monitored, for example, in case of capital gains tax evasion or insider trading. However, the regulator’s role is to make the participants aware of the complexity of financial market functioning and train them in prudent investments.
Financial engineering for complex innovative products such as hedge funds is not warranted, rather products should be broad-based and have the capacity to offer a risk-adjusted return to risk-averse investors. Meanwhile, investors should be empowered for a free choice and informed decision-making on investments.
Kushankur Dey Bhubaneswar decades of Left rule and what a grand entry she has made into state politics. And knowing how she takes her opponent head on and does not forget easily, her relations with the Left is not going to be smooth anytime soon. Yes, all opposition parties are trying their best to put up a common candidate for forthcoming President’s poll to take on the ever-rising Bharatiya Janata Party, which almost has the numbers to sail through. Her biggest strength has been her integrity which has been slightly hit, thanks to Narada and Saradha scams in her state. But the recent civic polls win will boost her morale. The question then is whether she has become mature enough to set aside her differences with the Left for the sake of a common presidential candidate. I have my doubts.
Bal Govind Noida It has been reported that the Union Finance Minister Arun Jaitley has filed a fresh civil defamation suit of ~10 crore against Delhi Chief Minister Arvind Kejriwal for use of derogatory words by his counsel Ram Jethmalani. Kejriwal has been in the eye of a storm for allegedly accepting ~2 crore besides facing a defamatory case for accusing Jaitley of financial irregularities in the Delhi and District Cricket Association when he was president from 2000 to 2013. Jethmalani is a seasoned lawyer.
He should have pondered over the implications of the utterances in open court. He should have refrained from using abusive languages. The language prompted Jaitley to fire a fresh salvo at Kejriwal. Irresponsible utterances not only take away the precious time of courts but also contribute to increase in the number of cases. Criticisms and counter-criticisms are common in political circles. But the serious allegations of corruption and personal cases involving a chief minister would divert attention leaving little time for the administration to concentrate on running the government efficiently.
That Kejriwal has not been able to concentrate on good governance is manifest in the Aam Aadmi Party losing successive elections. Kejriwal has squandered away the opportunity given to him by the Delhi electorate in 2015. He has not only failed to prove his mettle but also let loose his tongue without pondering over the implications of his and his counsel’s outbursts.
K V Seetharamaiah Hassan