Good Idea bad Timing

Good Idea ,bad timing,
The move to increase the share of public holding to 25 percent is long overdue and the capital market and retail investors should welcome it and encourage.

As pointed out, the timing may not be very appropriate, but that should not be taken as an excuse to implement it. Compliance to the requirement may take a little longer time than what is envisaged because of the present highly volatile market conditions and tight liquidity environment due to pressing demand for funds from different corners which include funding infrastructure,the idea should not be diluted or shelved even for the time being.

This is an opportunity for widening and deepening the capital market and the benefits are very many for the economy and retail investors. The craze for investments in gold and real estate will cool down and it is an excellent move for creation and distribution of wealth for a vast segment of people. The volatility seen in the market will also gradually get eliminated to a great extent when the share holding pattern changes. Retailers will derive the satisfaction of being contributors towards capital formation for nation building activities.

This approach of the Government carries wisdom and should be accepted and implemented although it may appear to be ill timed.

Dr. T.V. Gopalakrishnan