This refers to ‘Economy faces inflation and investment hurdles: FinMin Report’(October 2). India’s trade deficit remains a concern, FPI/FII outflows have pressured equities, and the rupee’s depreciation against the dollar has persisted.

Except for measures such as the special FCNR(B) initiative, there appears limited emphasis on restoring foreign investor confidence. LTCG and STCG taxes can discourage equity investment, while domestic investors cannot indefinitely support valuations without convincing growth prospects. FCNR(B) depositors received concessions, including RBI absorption of hedging costs, creating a “hidden cost” for the system/public finances,while domestic investors continue to face relatively less favourable conditions across debt, equity and bank fixed deposits. Overall, pragmatism on the economic front seems to have been the casualty.

Srinivasan Velamur

Chennai

Insurance sector reforms

This refers to ‘Taking stock of IRDAI’s distribution reset (October 2). These reforms are well-meaning and brook no delay in implementation once feedback is completed on October 25. They bring back the correct order of priority in the insurance ecosystem attaching much needed primacy to policyholder protection, followed by sustainable insurance business and fair distribution of cost structure.

After the good climate created for 100 per cent FDI through legislation by Parliament, the Indian insurance sector is being watched with interest by the world and the proposed reforms would well-align with the objectives of the legislation.

Angara Venkata Girija Kumar

Chennai

Reining in inflation

Apropos ‘RBI’s inflation-fix formula’ (October 2), the flexible inflation-targeting framework has given monetary policy a clearer anchor, while allowing room to respond to changing economic conditions. Its credibility, however, depends on transparent decisions and effective communication. Inflation is not driven by interest rates alone; food prices, supply disruptions and global energy costs can quickly affect households.

The RBI should therefore strengthen coordination with the government on supply-side measures while retaining its operational independence.

SP Suganya Devi

Coimbatore

A leg-up for PMS

Apropos ‘PMS promise’ (October 2). SEBI’s revised framework could make Portfolio Management Services accessible to a wider group of investors, but expansion should not come at the cost of investor protection.

Lower entry thresholds and greater investment flexibility are useful only when clients understand the risks and costs involved. PMS providers should disclose performance after all fees, compare returns with suitable benchmarks and clearly explain downside risks. Independent audits and stronger grievance redressal would also improve confidence. Investors should not be encouraged to treat PMS as a substitute for diversified mutual funds.

A Myilsami

Coimbatore

Published on October 2, 2026