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

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Set for New Peaks

interest income without bearing any of the risk when the undertaking is not making profits and, as soon as its profits grow, of converting the loan into equity so that they may get a share of profit. As one of the participants cynically remarked, perhaps, in times like the 1968-68 recession, when equity investment became risky and non-yielding, Government might ask for the right to reconvert equity into loan. Finally, would not conversion of loans into equity entail locking up of financial institutions' loanable funds in risk capital for long periods,with the result that the resources will cease to rotate?

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