Keep a tab on PN route

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: It is heartening to note that the government has asked the National Institute of Public Finance and Policy to prepare a report on capital flows and its consequences to the country (‘Worried, govt monitoring stock markets’, Oct 17). We definitely need to know whether promoters of Indian companies are misusing the participatory notes (PN) route to plough back funds. The quality and character of foreign funds coming in via the PN route is a big issue that needs to be thoroughly investigated. In this context, the Finance Minister has rightly observed that the Sebi move (‘Sebi to ban participatory notes’, Oct 17) is to moderate the inflow of capital in the interests of stock markets.

—Vijay Mullaji

A gambler’s market

It is a myth that our economy upholds fairplay and market forces are allowed a free hand. This enduring myth has once again been shattered on Wednesday when the Sensex plunged by nearly 1,800 points (‘Markets reel under Damodaran effect’, Oct 18). To check further fall in the share index, all trading was suspended for some time. On the other hand, the Reserve Bank of India does not allow the rupee to strenghten against the US dollar. The plain truth is that many investors in shares are gamblers ready to take all sort of risks. So, there should not be any intervention to control market movements. Let there be free rise and free fall of share prices. Gamblers need no protection.