Assorted Links

1.  TK Arun in ET says we should not worry about Rupee getting stronger. His summary is:

The short point is that a stronger rupee right now would help the economy consume and invest more and to enhance Indian ownership of assets in India and abroad.

I don’t really agree to his viewpoint. Firstly, we do not really know what is the right level of rupee. As India has current a/c deficit, the rupee should depreciate but because of capital flows the new effect is appreciation of the rupee. This means worsening of the deficit as imports become cheaper. And then we have RBI intervention which is done in an opaque manner and it is only of Friday we come to know how much RBI intrevened in the markets. More clarity is needed.

2. Super economics blog from WSJ. Thanks to Marginal Revolution for the pointer.

3. Mutual Funds business is a mess. SEBI Chairman says the growth is mostly in liquid funds and that too from corporates. It is hightime something is done about the Mutual Fund business- lot of schemes by one AMC with similar objectives, mostly used by corporates, high expenses, no idea about number of individual investors etc are some very important issues which have to be answered.

4. SEBI takes out a consultative paper for listing and trading securitised paper. Here is ET’s view . Here is the paper. I am a bit confused after reading ET’s view. SEBI should do something about its website.

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