Sunday, October 21, 2007

Mr. Honorable Finance Minister....

After the recent p-note issue, BJP came up with an interesting idea of having a JPC enquiry of it. I have no idea what BJP's intention behind it is - which of course is politically motivated, but the way they are reacting is rather childish. However, thinking a bit further on this issue - Though BJP is wrong in its rationale the spirit isn't quite wrong. Having thought a bit more about it, even I have a few questions to our Honourable Finance Minister. Here's my list Mr. Chidambaram -

0. Is it part of your duty to make comments about Stock Markets or even for that matter 'Forex Markets' did you forget 'Bond Markets' by any chance?

1. Mr. Honourable Finance Minister (HFM) is SEBI not supposed to be an Independent Regulator outside the scope of broader politics? If then, why did you react to the SEBI's recent 'draft proposal' on P-Note indicating that it is a part of broader 'capital control' in view of the receint 'copious' inflows, while SEBI says it is primarily worried about the anonymity associated with P-Notes? Or should we assume that it falls within the broader spectrum of your duties as an FM to interfere with the day to day operations of 'independent regulators'? Should we just assume that your interference is limited to SEBI and to some extent RBI or are there any other regulators that we should be aware of?

2. Mr HFM, I remember you going on the records on a television channel asking the reporters - "Please do your homework, check who is buying on the NSE and BSE now? Some of the prominent FIIs are buying now. I don't want to take names, but you do your homework...." Does this mean that it is not unreasonable to assume that - as a part of priviledge of you being FM, you are aware of the 'actions' of certain market participants, the knowledge of which is not available to an ordinary investor like us? Is it not fair to assume that "Such knowledge can be potentially used in a manner that can be financially beneficial to you as an individual?" Is it not abuse of the priviledge you have? Or is it true that you are so naive that you forgot that you should not be atleast 'publicly speaking about it'?

3. Was LIC asked by someone prominent which is you Mr. HFM to buy on Wednesday? If that is true, I think your stomping is not limited to 'independent regulators'. Are there any other names that we should be aware of?

4. In view of this, should you be trusted with nation's money at all?

I am really surprised - not a single journalist (they are more like VJs) asked any of these questions to our honorable finance minister. Infact, I was even more surprised, some of the eminent editors at channels like CNBC, believed it is part of FM's duty to interfere with stock markets. One of them went to the extent " If I were a finance Minister today, I would ....." This is disturbing or should I say disgusting?

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