With reference to the editorial, “Indefensible move” (October 4), being the capital market regulator, the Securities and Exchange Board of India (Sebi) should be more concerned about the interest of investors.
Investors have every right to know the financial position and credibility of the company into which they have put their money. That it will aggravate the worsening asset quality of banks, returns and the need for more capital are in no way the concern of investors.
At a time when banks are keen on the quality of their assets, disclosures about defaults in payment of loan instalments and interests immediately on the next day of a default will enable them to initiate timely remedial measures. This will prevent that particular asset from slipping into the non-performing category.
The disclosure of loan and interest from the very next day of a default will alert investors and lenders about the safety of their money invested or loaned. Sebi must restore the directive concerned.
V S K Pillai Changanacherry.
C V Krishna Manoj Hyderabad
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