In light of the recent IBC amendments, consistency demands that FRDI regulations be established to safeguard the interests of non-financial lenders too. In the event of a default by a bank/FI, the unsecured depositors should be compensated via liquidation of assets/securities and/or by EPS dilution. The guarantors — DICGC/RBI — should be liable to repay the creditors at risk. Although, compliance to lender-friendly IBC norms would diminish the need for FRDI regulations, total accountability towards depositors would be a proactive approach to curb sub-prime lendings and/or potential bad loans.
Girish Lalwani
Of bitcoins and such
This is with reference to the editorial, ‘Warnings aren’t enough’ (December 13). There are lot of uncertainties regarding crypto currencies, particularly bitcoin. The technicalities, and inherent strengths and weaknesses are not always understood by an investor for whom they are speculative investments that multiply within a short time. People who invest in bitcoins can often invest secretly; the benefits of such investments are tax-evasion, unaccounted existence and global acceptance and transfer.
Ordinary investors are not generally lured into investing in cryptocurrencies . It is a threat to financial transactions especially the money market where demand and supply is determined by flow of legal money supported by an accepted accounting and transfer system.
SEBI or RBI may control its use or bring it under certain rules. Perhaps its nature and global acceptance make it universally popular and globally accepted for payments. It is too early to predict the future of such currency, though many economists and financial analysts predict it as a bubble that could break. The only relief is that in such an event the losers are not small investors.
Mathew Abraham
Thiruvananthapuram
Inexcusable
That the Prime Minister of India could stoop to such a low level and accuse Congress leaders and Manmohan Singh of colluding with Pakistan against national interestsdenigrates the office he holds. It appears to be a reflection of his desperation to win the Gujarat polls at any cost. The allegations have dealt a blow to his image of being a strong, dignified leader. Maintaining decorum during the election campaign is an important trait of a mature leader.
M Jeyaram
Sholavandan, Tamilnadu
Shortsighted ban
The I&B ministry’s advisory to TV channels banning condom ads between 6am and 10pm because that they are “indecent” and can “impact children” is a short-sighted intervention that can undo the gains in public health. The mere fact that it is essential to ensure safe sex, avoid teenage pregnancies and succeed in family planning programmes validates condom ads. Condoms are a tribute to human ingenuity which has made it possible to have sex for pleasure without procreation.
In this day and age we cannot be so prudish . As for the embarrassment caused to an orthodox family watching a condom ad together, it is far less consequential than unprotected sex. To say that condom ads should not be erotic is like saying that food should not be seasoned to taste. In any case, porn is available on smartphones and laptops. Therefore it is better “to condom sex” than “to condemn sex”.
G David Milton
Maruthancode, Tamil Nadu
Jerk off
All new vehicles need to pass a speed-breaker test. They have to go over speed-breakers without a jerk. Is that possible in India? The Delhi High Court had directed agencies and civic bodies to remove all speed-breakers that do not conform to regulation or are unauthorised. It also said that plastic or PVC speed-breakers must be removed if they fail to conform to the guidelines and if they haven’t been cleared by the traffic police. Non- standardised speed-breakers are dangerous. They also aggravate back issues, even among young people, not to speak of the potential damage to vehicles.
Mahesh Kapasi
New Delhi
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