Letters to the editor from March 03, 2023

semiconductor factories

Speaking of “India’s semiconductor ambitions are being led by big players” (March 3), India has the advantage of having a large pool of skilled engineers needed for chip design. But there is a need for semiconductor manufacturing facilities that require large investments. In recent times, the world has witnessed an intense struggle for control of the global semiconductor industry. Big industrial companies in India should join forces, bring in technology partners from countries like South Korea, Taiwan, etc. and set up semiconductor factories in India.

As India is late in chip manufacturing, the government should consider setting up public-private partnership manufacturing facilities to speed up project implementation.

Kosaraju Chandramouli

Hyderabad

Adani shares in Nifty

This is in reference to “Needless to fret over Adani stocks in Nifty indices” (March 3). Hindenburg Research’s allegations of stock manipulation and fraud against the Adani Group have yet to be proven by a regulator. The Supreme Court has now formed a panel to investigate regulatory failures and report within two months.

Therefore, it is premature on the part of the so-called “experts” to propose the deletion of Adani shares from the stock market indices. What if it turned out that the Hindenburg Report was driven by an ulterior motive of making financial gains? It is alleged that Adani Group is over-leveraged which has led to the company’s financial problems and every effort is being made to reduce its debt to various financial institutions. This simply shows an imbalance in the capital structure. Although market capitalization is considered the primary metric for inclusion in the Nifty indices, the downside is that without solid evidence, any calculated attack on the group will result in market volatility and prompt delisting of stocks from the Nifty indices.

Srinivasan Velamur

Chennai

Investigation of regulatory gaps

This is in reference to the “SC Panel to Investigate Regulatory Gaps Leading to Market Crash” (March 3). Indeed, it goes against logic to set up a panel and on the same day ask the market regulator SEBI to conduct an independent investigation. And both have been given a two-month timeframe to finalize their report. There is no doubt that the findings of the panel and SEBI will settle many nerves as the truth will see the light of day. However, the SEBI should first have been allowed to communicate its findings to the Supreme Court and only if these were unsatisfactory should the panel be formed.

Bal Govind

Noida

Jan Vishwa’s initiative

Speaking of “Civilized Compliance” (March 3), productivity and economic growth invariably depend on the ease of doing business, and Jan Vishwas’ proposed law aimed at decriminalizing the compliance burden on companies would further support this. The current legal framework is designed in such a way that any non-compliance is punishable by penalties in the form of fines in addition to imprisonment for the person concerned. This can deprive the individual of the opportunity to restore company culture and permanently affect it.

The new initiative will only take effect if the drudgery associated with paperwork, sourcing specific requirements and submissions is properly addressed by creating an automated common platform.

Sitaram Popuri

Bengaluru