Our Media Introspects Now
Updated: May 31 2004, 05:30am hrs
This refers to your article A message for media from mandate 2004 (May 28). One couldnt have expected a more candid expression of media introspection than Sanjaya Barus article. Nevertheless, one is not sure whether the middle class participated in the voting more than in previous polls. Farmers, religious minorities and other working classes could not be properly measured. It is the employee votes of the government that tilted the scales of power. All of them voted against incumbency with a vengeance be it Tamilnadu, Andhra, Karnataka or elsewhere and these voices were not captured either by the media or the soothsayers.
B Yerram Raju
This is in response to the news report on Arvind Virmanis lecture (May 12). Ever since independence, our economists have been trying to make India a developed country. But the situation was not suitable for us to adopt the capitalistic model. At that time, 40 per cent of the assets were in the hands of 5 per cent of the population.
Nehru along with Mahalanobis deduced a formula which would help the poor class of society grow along with the economy that of the 1st five year plan (1951-1956) dedicated to agriculture. In the 2nd five year plan (1957-62), emphasis was given to industries for, after food, next necessity was basic employment.
After this there came the problem of overpopulation and food requirement so the government went for Green Revolution. For the first time India achieved the target of 63 mt. This was followed by the white revolution (even today India is the highest producer of milk in the world).
In 1991, the government went one step forward towards economic reforms (8th five year plan). In 1997 (the 9th five year plan), the second generation economic reforms changed the overall scenario. Today, the government is doing its best to provide good governance for the public.
This refers to the news report May jitters see 40 per cent dip in demat requests (May 28). I wish to bring to the notice of the author that in February 2004, NSDL had come out with a notification withdrawing the transfer cum demat scheme, meaning company/RTA is henceforth not required to give an option to the transferees of physical share certificates to convert their scrips in demat form. This is could be one of the reasons for fall in demat requests.
Another reason could be that the companies whose shares are in compulsory demat mode, their share capital to the extent of 80 per cent or more has already been dematerialised. Those holding in physical form are people unwilling to dispose off their shares in the near future.
I think these are reasons why the demat requests have come down since February. Market movements seldom impact the dematerialisation process. This is more so because the people (such as FIIs) whose transactions are likely to make an impact in the markets, would have dematerialised their shares long back and would not wait until the markets are on a high. They would always prefer to hold their shares in the most liquid form. I think the whole idea behind the article is not well thought of.