Confiscating the personal assets of guarantors to meet the obligations of the borrowing firm is quite legitimate, though not completely in line with business ethics. The potential amendment to the IBC would undoubtedly benefit shareholders and provide a return to all stakeholders at higher valuations. However, the new regulation shouldn’t give a free hand to banks/FIs to provide unsecured credit or carry out subprime lendings.

Often, at the time of a credit sanction, the assets, liabilities, incomes, expenses and credit history of the guarantor are not considered part of the credit decision, thus sending a message to the guarantor that the unconditional promise is more of a routine procedure than a real contingent liability.

Moreover, the personal assets of the guarantor, not sourced by corporate earnings and/or reserves, shouldn’t be within the scope of the IRP.

Girish Lalwani


Give us change

The Government must put coins of all denominations in abundance in the market to enable the public to tender exact change without difficulty. Further, small change has lost relevance in the economy because of the high rate of inflation.

These days 50-paise coins are not being accepted by many people, and one-rupee and two-rupee coins are in short supply. Shopkeepers often give toffees in lieu of small change. It’s the same in post offices too, except that there they give postal stamps instead of change. Many shopkeepers even refuse to sell goods /if the exact amount is not paid for the purchases. Are toffees and postal stamps legal tender for monetised transactions?

Strangely, many shopkeepers and even restaurants make bills for amounts such as ₹152.26, ₹105.02 and so on. How can anyone tender 26 paise and 2 paise when the appropriate coins are no longer in circulation? The Government must direct all traders, business houses and others to round off their bills to the nearest rupee.

Mahesh Kumar

New Delhi

Loaded against women

This refers to your editorial, ‘All about optics’ (November 30). The theme of GES, ‘Women First, Prosperity for All ‘, is highly relevant in India where the women’s participation in the workforce is just 27 per cent compared to China and Brazil where it is between 67 and 70 per cent. What is worrisome is the fact that participation level has been steadily dropping since 2005 despite 42 per cent of Indian women being graduates.

Women entrepreneurship is not catching up in India due to a host of social, cultural and economic factors. Maybe Ivanka Trump’s Women Entrepreneurs’ Finance Initiative will provide a boost to Indian women by giving them access to business capital.

Philip Sabu

Thrissur, Kerala

Religion and politics

Rahul Gandhi’s visit to the Somnath temple in Gujarat has turned into a full-blown political row apparently because the BJP believes that it is its ‘sole prerogative’ to tap Hindu religious identity for political gain. To reach a situation where not being a Hindu is regarded as a disqualification to contest and win an election is to pronounce ‘secular politics’ dead. It is evident from the competition between parties “to capture the Hindu vote” that religion is an overriding consideration for voting preferences and that secularism is still to take deep root in India.

However, it should not be forgotten that voters care no less for material well-being.

G David Milton

Maruthancode, Tamil Nadu

An able leader

The best minister for civil supplies that Kerala has had is no more. E Chandrasekharan Nair was an able leader with strong vision and breadth of imagination. He was one of the architects of the Land Reforms Act in Kerala. He implemented several projects that were helpful to the unprivileged and underprivileged sections of society. Political leaders of his standing are fast becoming scarce in Kerala

KA Solaman

Alappuzha, Kerala

(This article was published on November 30, 2017)

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