Economic Times Story on 20.12.12: I-bankers no better than matchmakers: UK Sinha, Sebi chief
Comments of MILAN K SINHA (PATNA)
20 Dec, 2012 07:00 PM
The issues raised by SEBI chief deserve to be complemented, further deliberated and finally addressed by initiating matching actions to make and keep the primary market investment friendly for retail investor. In our country, the equity market in itself is not the sought after investment destination for large section of middle class people who, though wish to associate with the market, yet is apprehensive of losing even his hard earned principal amount. The transparency, objectivity, data integrity etc. which should be the hallmark of any progressive, dynamic and investor friendly primary equity market can be put in place with more seriousness by the collective efforts of promoters of IPO company, investment bankers, equity traders/brokers, market watchers/analysts, auditors/statutory bodies and above all SEBI authorities. We all know that no IPO can withstand the test of the dynamic equity market until and unless having strong fundamentals besides strict compliance of norms of the capital market regulator. The merchant banker can't simply shift the blame to others for any wrong doing as every functionary is expected to perform its duty with due diligence and prudence to ensure safety of investors money and consolidation of investor confidence in the market.
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Economic Times Story on 20.12.12: Govt needs to revisit priority sector lending policy for more effective financial inclusion
Comments of Milan K Sinha (Patna, India)
20 Dec, 2012 10:00 PM
The Govt. must revisit its policy of Priority Sector Lending(PSL) by Indian Banking Sector to make it more inclusive and effective for ensuring sizable contribution of Agriculture & MSME to overall GDP growth of the economy in coming years. Dwindling growth of Agriculture over the last couple of years is a real cause of concern not only for the food security of the country but also for the well being of majority of our population who are still dependent on agriculture and allied activities for their livelihood. Similarly, to sustain and further improve the growth rate of MSME sector is very necessary for employment generation as well as balance growth of our economy which is passing through a rough weather for quite some time. Constant monitoring of PSL figures of Banks by RBI atleast on month to month basis together with its discreet checking and analysis to ensure data integrity and correctness is a must for directing individual Banks for achievement of set targets suitably. NPAs in PSL can very well be contained by need based lending with prudence and transparency. The Govt. machinery must also come forward to help disburse the farm loan etc. by granting various certificates quickly and genuinely wherever required and also lend active support in the recovery efforts of lending institutions. Moreover, as a ground reality, it is easier to recover loans in rural areas as the rural people are still comparatively honest in repaying their loan dues.
Will meet again with Open Mind. All the Best.
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