Letters: Reversing reform

It is true that govt has invested huge amounts in IFCI, but move by financial managers is likely to work against privatisation

Contrary to the government’s reform agenda aimed at privatising financial services and banks, I am surprised to read that the government has been successful in getting clearance from the regulator, the Securities and Exchange Board of India, to go ahead with the conversion of debentures into equity so that its stake is increased to more than 51 per cent in the Industrial Finance Corporation of India, or IFCI (“The battle for IFCI”, BS Weekend, September 29).

This clearance has come as a shot in the arm for the government, even though the board of directors of the IFCI was not ready to hand over the baton. It is true that the Centre has invested huge amounts in the ailing institution, but the move by financial managers at the Centre is likely to work against privatisation.

 

Shrikanteshwara S Bangalore

Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number