Editorials

India Today, March 15, 1999
March 15, 1999

Guarding Dalal Street

Software and pharma scrips are exciting. But beware the fly-by-night operators.

Guarding Dalal Street For a stock market system that has become inured to false dawns, this may be just another. Nevertheless, at least some of the buoyancy and optimism caused by the continued -- and especially post-budget -- rise in the prices of shares of infotech and pharmaceutical companies is justified. To the layperson, the success of the two sectors is a matter of pride and a testament to the abilities of Indian enterprise. The investor's commitment goes deeper: he puts his money where his pride is. In recessionary times, with only a handful of industries in good health, there is the danger of too much money chasing too few quality shares. This happened in the mid-'90s -- when the financial services sector was seen as the golden goose. From mutual funds to primary issues of sundry merchant bankers, common investors poured their savings into this area in the hope of making a killing. Unfortunately, they also left themselves vulnerable to fly-by-night operators.

That was the time when every small-town businessman dreamt of setting up an NBFC. That was the time when financial firms with no more than a rented room to themselves -- and sometimes even less -- floated successful primary issues. Then one day the bubble burst. Promoters simply disappeared, investors were left staring at worthless share certificates and confidence levels plummeted. Software and pharma have given Indian bourses a last chance this decade. Inevitably, this will excite the price manipulators as well as the downright crooked who will seek to raise money for imaginary projects. A situation where shares of some companies have doubled in value in a matter of days is ripe for such mischief. It cannot but worry bona fide players who are running businesses profitably and honestly. The onus is on SEBI to perform its role as regulator -- whether in vetting new issue applications or curbing reckless trading. Dalal Street can do without a final crash this millennium.

Faith of the Nation

The Khalsa's 300th anniversary is a matter of collective pride. Don't politicise it.

Faith of the Nation April 14, Baisakhi, is just over a month away -- and so is the beginning of the tercentenary celebrations of the Khalsa. It was on this day in 1699 that Guru Gobind Singh created the modern Sikh faith and gave it its outward symbols and sense of destiny. Though one of India's youngest religions, Sikhism is a cornerstone of Indian nationhood. As such the Khalsa's 300th year should be a matter of collective pride and the functions at Anandpur -- the town where the Khalsa was born -- should be a national endeavour. Unfortunately, this is anything but the case. The commemoration has become part of Punjab's messy politics. In the Akali Dal, the feud between Parkash Singh Badal and Gurcharan Singh Tohra centres on a mutual desire to appropriate the anniversary. The clergy of course has been more than willing to play footsie. Religious leaders in Anandpur and Amritsar are engaged in their own one-upmanship. The CPI(M) has hailed the 300th birthday of the Khalsa but decided to stay away from the ceremonies because it is critical of the chief minister. The Congress, unable to decide whether it can snub official celebrations without risking Sikh wrath, is doing the usual: contemplating two stools.

It would be exasperatingly silly if it weren't so excruciatingly sad. The Khalsa festivities are part of every Indian's heritage. True, much of what will take place on April 14 and in the following days will be government organised but in spirit -- if not always in execution -- it will represent the popular will. To see politicians squabbling over and politicising what is a sacred duty must anguish the faithful. It is a measure of the times that some groups in Punjab see the tercentenary only as an occasion to milk the resourceful NRI Sikh community. Punjab's politicians suffered for a decade after betraying their people and playing false with faith. Must they repeat their sins?

Issue Contents | Write to us | Subscriptions | Syndication