The move could mark the beginning of a new chapter in the relationship between promoters and the FIs. So far, company promoters have clearly had the upper hand, using their political links to scuttle any attempt by the FIs to discipline them. In an environment where defaulters are mollycoddled by agencies such as the BIFR, any attempt to sell off the FI shareholdings to strategic investors is heresy. Luckily, that seems set to change, with this landmark offer of the FIs' Modi Rubber stake. The implications, provided the deal goes through, are enormous. It could pave the way for aquantum improvement in corporate governance as well as productivity. Companies must go to those managements which are best able to utilise their assets, and, given the fact that FIs own the largest chunk of corporate India, they are uniquely placed to enforce that elementary rule. The pressures of competition are forcing FIs to take steps to ensure that their loans are safe, and if changing managements is required, then that should be done without qualms. We must make the fullest use of the window of opportunity provided by the breakthrough in Modi Rubber. FIs must review their investments in all companies, and ease out non-performing managements. And in the interest of preserving the health of the financial system, the government must give the FIs a free hand.