Directed fund management: The Hindu Business Line
Directed fund management*
M G Warrier
July 18, 2019
Directed fund management
This refers to the reports “Jalan Panel moots transfer of RBI's surplus in tranches over 3-5 years” and "Rethink surplus transfer, SEBI chief urges Centre"(The Hindu Business Line, July 18). There may be reasons for certain quarters to selectively leak out the "thinking" of Jalan Panel giving an opportunity for media and analysts to speculate, when the report is being finalized. Let's wait till the report appears in the public domain.
The expectations and 'directions' being expressed/issued by GOI in the recent past regarding fund management and appropriation of income by organizations in which government has majority stake, affect the functional freedom (not to be confused with autonomy) available to them under statutes. The reference here is to forcing RBI to transfer advance against future surpluses and fixing a percentage (75 in SEBI's case) for transfer of surplus income.
In the fitness of things, statutory bodies should have functional freedom to manage their funds in a professional and transparent manner within the statutory provisions.
M G Warrier, Mumbai
*To read the published version, please use the link below and go to the caption
"Directed fund management"