Dear Madam,
First let me congratulate you for your achievements.
I am a proud Tamilian. Mr P Chidambaram has been a Finance Minister for a long time and now another Tamilian is Finance Minister.
On top of being a Tamil, we are also proud that a Tamil Woman is a Finance Minister.
Now let me come to the point straight.
As a Finance Minister, you should have been briefed about state of stock market.
We are in the worst bear grip, Real Estate, PSU Banks, Infra all gave negative returns even after a decade.
Baring few large cap stocks, overall market is in a pathetic state.
At this juncture, Budget recommended SEBI to consider 35% minimum public share holding.
This one later clarified is not an immediate measure, but assuming that it is implemented over a period of 5 years, companies will have to come out with issues worth Rs 4 lakh crore and along with Govt divestment, the new issues will be to the tune of Rs 8 lakh crore over a period of 5 years.
I do not know who advised you that this kind of money can be raised.
So all stocks that are affected by this 35% share holding fell immediately. So the over all market fall was not much.
Budget proposed additional tax for people who earn above Rs 2 crore.
That is a good measure and no one will deny the fact that a person making too much money should contribute more towards nation building.
Budget itself, I assume, did not intend to tax FPIs, later the intrepretation by some officials, FPIs were included.
That triggered a sell off in the next day and markets fell significantly.
Markets stabilised after some times as there were reports that you will be clarifying in Parliament.
But before you clarify in Parliament, Income Tax Dept clarified by saying it will apply to FPIs and if they want to avoid they can form a company.
Still FPIs were waiting for your clarification.
I am sure, FPIs would have given their point of view, Pension Funds by the constitution can only be a Trust and can not be a company, large amounts of money come from Pension Funds.
But you just repeated what Income Tax Dept said few days earlier, the next day FPIs presses the selling button, markets fell drastically.
I am proud that your office is following me in Twitter.
There are many people like me who are strong supporters of BJP started giving our views, do not know whether you got those views.
Kotak Bank Chairman Mr Uday Kotak said, "Respect Market"
20% Tax on Share buyback only added fuel to fire.
Your reply in Parliament is seen as 'arrogant' in some circles, though it is not true.
Some market participants think this is a show down between FPIs and Govt.
FIIs have sold for about Rs 15,000 crore in last one month but DIIs have bought for Rs 17000 crore.
This elevated buying by DIIs, more than what FIIs are selling can be seen in two different ways.
1. It is the responsibility of DIIs to make sure too much volatility is not there in market.
2. Govt instructs DIIs to buy aggressively so that markets do not fall and hence FPIs surcharge problem will be forgotten.
Many people think second one is happening.
But despite DIIs buying for Rs 2000 crore more than what FIIs have sold, markets fell about 8%.
Auto index trading at 52 week low.
Auto sales going down, many companies are cutting productions.
Dealers have lot of inventories, Banks refusing to extend any loans to Dealers for fear of default.
So overall Auto sector was in a terrible situation.
Govt asked two wheeler companies to come up with EVs in few years, for EV Cars since GST was reduced from 12% to 5%, registration charges increased.
Recently I saw two news. One, a new company MG booked 20000 cars and two, Hyundai booked 120 EV Cars.
Is there any relation between the loss in GST and additional registration charges?
Even rich countries could not shift to EVs due to cost.
EV cars cost about double the price of normal cars, India is a price sensitive market.
Everyone, including me, said if there is a stable Govt. markets will go up.
Why?
A stable Govt. can bring stable policies and can help the sectors which are in trouble.
I am sure you should have watched the Tamil Movie, "Thangappadakkam".
I remember a dialoge, "If people have trouble as a last resort they go to God, if God himself is in trouble, what can be done?"
People go to Govt as a last resort if they have big problem but if the Govt itself in creating big problems where can they go?
What was seen as a big positive, absolute majority for (y)our party, now the same thing is seen as a big negative.
Many start thinking that the Govt is becoming insensitive due to its comfortable majority.
To add fuel to fire, an entrepreneur committed suicide, blaming squarely Income Tax authorities.
After Nirav Modi and Vijay Mallaya kind of cases, this is another terrible thing that nobody expected.
Now market is thinking, "Where is the end?"
The most important thing for a good stock market is a good Government.
The opposite is also unfortunately true.
Many people may think why I am worrying about stock market. There is a perception that people who invest in stock market are only rich people.
Without a good stock market, entrepreneurs can not raise money, can not create additional employment.
I am sure you know the importance of healthy stock market more than what I know.
This message may or may not reach you. Though I have ways of communicating to you directly, I do not wish to do that.
As I always feel the Govt is not only for people who are like me who has some influence but for every common man who does not have any influence.
I will be very happy if stake holders are consulted and some remedial measures are taken before it is too late.
Thank you.
-P R Sundar.
( A common man who think about common men)
First let me congratulate you for your achievements.
I am a proud Tamilian. Mr P Chidambaram has been a Finance Minister for a long time and now another Tamilian is Finance Minister.
On top of being a Tamil, we are also proud that a Tamil Woman is a Finance Minister.
Now let me come to the point straight.
As a Finance Minister, you should have been briefed about state of stock market.
We are in the worst bear grip, Real Estate, PSU Banks, Infra all gave negative returns even after a decade.
Baring few large cap stocks, overall market is in a pathetic state.
At this juncture, Budget recommended SEBI to consider 35% minimum public share holding.
This one later clarified is not an immediate measure, but assuming that it is implemented over a period of 5 years, companies will have to come out with issues worth Rs 4 lakh crore and along with Govt divestment, the new issues will be to the tune of Rs 8 lakh crore over a period of 5 years.
I do not know who advised you that this kind of money can be raised.
So all stocks that are affected by this 35% share holding fell immediately. So the over all market fall was not much.
Budget proposed additional tax for people who earn above Rs 2 crore.
That is a good measure and no one will deny the fact that a person making too much money should contribute more towards nation building.
Budget itself, I assume, did not intend to tax FPIs, later the intrepretation by some officials, FPIs were included.
That triggered a sell off in the next day and markets fell significantly.
Markets stabilised after some times as there were reports that you will be clarifying in Parliament.
But before you clarify in Parliament, Income Tax Dept clarified by saying it will apply to FPIs and if they want to avoid they can form a company.
Still FPIs were waiting for your clarification.
I am sure, FPIs would have given their point of view, Pension Funds by the constitution can only be a Trust and can not be a company, large amounts of money come from Pension Funds.
But you just repeated what Income Tax Dept said few days earlier, the next day FPIs presses the selling button, markets fell drastically.
I am proud that your office is following me in Twitter.
There are many people like me who are strong supporters of BJP started giving our views, do not know whether you got those views.
Kotak Bank Chairman Mr Uday Kotak said, "Respect Market"
20% Tax on Share buyback only added fuel to fire.
Your reply in Parliament is seen as 'arrogant' in some circles, though it is not true.
Some market participants think this is a show down between FPIs and Govt.
FIIs have sold for about Rs 15,000 crore in last one month but DIIs have bought for Rs 17000 crore.
This elevated buying by DIIs, more than what FIIs are selling can be seen in two different ways.
1. It is the responsibility of DIIs to make sure too much volatility is not there in market.
2. Govt instructs DIIs to buy aggressively so that markets do not fall and hence FPIs surcharge problem will be forgotten.
Many people think second one is happening.
But despite DIIs buying for Rs 2000 crore more than what FIIs have sold, markets fell about 8%.
Auto index trading at 52 week low.
Auto sales going down, many companies are cutting productions.
Dealers have lot of inventories, Banks refusing to extend any loans to Dealers for fear of default.
So overall Auto sector was in a terrible situation.
Govt asked two wheeler companies to come up with EVs in few years, for EV Cars since GST was reduced from 12% to 5%, registration charges increased.
Recently I saw two news. One, a new company MG booked 20000 cars and two, Hyundai booked 120 EV Cars.
Is there any relation between the loss in GST and additional registration charges?
Even rich countries could not shift to EVs due to cost.
EV cars cost about double the price of normal cars, India is a price sensitive market.
Everyone, including me, said if there is a stable Govt. markets will go up.
Why?
A stable Govt. can bring stable policies and can help the sectors which are in trouble.
I am sure you should have watched the Tamil Movie, "Thangappadakkam".
I remember a dialoge, "If people have trouble as a last resort they go to God, if God himself is in trouble, what can be done?"
People go to Govt as a last resort if they have big problem but if the Govt itself in creating big problems where can they go?
What was seen as a big positive, absolute majority for (y)our party, now the same thing is seen as a big negative.
Many start thinking that the Govt is becoming insensitive due to its comfortable majority.
To add fuel to fire, an entrepreneur committed suicide, blaming squarely Income Tax authorities.
After Nirav Modi and Vijay Mallaya kind of cases, this is another terrible thing that nobody expected.
Now market is thinking, "Where is the end?"
The most important thing for a good stock market is a good Government.
The opposite is also unfortunately true.
Many people may think why I am worrying about stock market. There is a perception that people who invest in stock market are only rich people.
Without a good stock market, entrepreneurs can not raise money, can not create additional employment.
I am sure you know the importance of healthy stock market more than what I know.
This message may or may not reach you. Though I have ways of communicating to you directly, I do not wish to do that.
As I always feel the Govt is not only for people who are like me who has some influence but for every common man who does not have any influence.
I will be very happy if stake holders are consulted and some remedial measures are taken before it is too late.
Thank you.
-P R Sundar.
( A common man who think about common men)
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