ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Error message

  • Notice: Undefined variable: rendered_rows in include() (line 15 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/contrib/views_slideshow_cycle/theme/views-slideshow-cycle-main-frame.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 16 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_item in include() (line 17 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 22 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_rendered in include() (line 23 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 16 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_item in include() (line 17 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 22 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_rendered in include() (line 23 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 16 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_item in include() (line 17 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 22 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_rendered in include() (line 23 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 16 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_item in include() (line 17 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 22 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_rendered in include() (line 23 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 16 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_item in include() (line 17 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: css_id in include() (line 22 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: field_rendered in include() (line 23 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/theme/views-slideshow-pager-field-field.tpl.php).
  • Notice: Undefined variable: rendered_rows in include() (line 15 of /public_html/www.epw.in/public/sites/all/modules/views_slideshow/contrib/views_slideshow_cycle/theme/views-slideshow-cycle-main-frame.tpl.php).

H T Parekh Finance ColumnSubscribe to H T Parekh Finance Column

Force-Funding of Infrastructure

It is easy to force-fund infrastructure by persuading the banks and the RBI to lend money, but this is only likely to result in a fragile banking system. The gains will be greater if the projects are first made viable. Investors will channel resources into infrastructure once a market has been created, regulation put in place, and tariff reform implemented.

What Do Banks (Not) Do?

In many ways the banking system in India, including the regulatory apparatus, remains a product of the planning years. It seems to be a system that was conceived for a world where people were expected to do what they were told, and things happened as they were meant to. The real challenge, whether public control remains or not, is to create a banking system for a world where investors take risk and sometimes fail, where bankers need to take initiative and use their judgment. We need incentives for bankers that reward success but make allowances for bad luck, which at the same time guard against the temptation to be irresponsible or corrupt.

Liquid Secondary Markets for Corporate Debt

The extent of liquidity of financial claims (in particular, that of corporate bond markets) in an economy affects its ability to withstand systemic risk. What mechanisms are available to improve liquidity in the secondary market for corporate debt securities?

Monsoon Hedging

Most people in India might be adversely affected by the monsoons, but the rest of the world is hardly so. What seems like a huge aggregate uncertainty when seen from the point of view of one country is in fact only a small aberration on well-diversified international investors' radars. The risk of poor monsoon can well be passed on to international investors.

Insurance: Over the Transition

Notwithstanding the impressive record of the regulatory authority, there remain several areas in which the regulator needs to quickly move forward. A lot more still needs to be done before the Indian public can take full advantage of a competitive insurance market. Besides developing specific lines of the insurance business, the regulator needs to fine-tune the rules of the game. The success of competition in financial sector ultimately depends on the efficiency of regulation.

Contrarian Fund

When markets are behaving in a highly irrational manner governments/regulators often try to send appropriate signals to calm down market sentiments. The problem is to intervene in the markets without sending signals that they are over-protective of market players. Such intervention should be reserved mainly for situations that are really serious and highly destabilising in nature. One way to minimise official intervention is to encourage the setting up of a Contrarian Fund which should not impose anysubsidy on the government but would enjoy all the benefits to which a mutual fund is entitled.

Compliance Costs of Financial Regulation

A key benchmark for judging regulatory standards will be the balance struck between the interests of the various stakeholders in the financial industry in question. The most important aspect of regulation is that the regulator creates incentives for firms themselves to maintain standards and seeks continuous improvement in practices, so making it possible for the regulator to step back

Future of Development Finance

The financial model of the typical development finance institution has become obsolete, but the need that it fulfilled, i e, getting new enterprises across the broad swathe of industrial and service sectors, has not. We need a new model to replace the old, something that will combine a reasonable degree of efficiency in managing the risks of its loan portfolio with a nurturing orientation towards small and medium enterprises, while they grow towards the market.

On Privatisation

As early as the 1950s, H T Parekh, a doyen of the world of financial institutions, had argued for public-private partnership in such institutions as well as in oil exploration and other sectors, and saw the need to provide affordable financial support for basic needs such as housing. Fittingly, this first contribution to the H T Parekh Finance Forum is on privatisation and disinvestment

Pages

Back to Top