Apropos the report "Investment 'grey market' rapidly growing, says Sebi chief" (April 4), the government has reduced the commission rate of postal agents to almost half on the collection of funds from ordinary people under various schemes. These agents are inclined to move to a sector where the commission rate is better. They, in turn, lure their existing clients to invest in the "grey market". Moreover, people hesitate to put their money in fixed deposits beyond a certain level, since banks deduct tax on interest when the interest income is more than Rs 10,000 in a year. At the existing market interest rate, an investment of more than Rs 1,20,000 attracts TDS. But no such restriction is applicable on the "grey market" of investment. This can be controlled by changing government policy, so that people do not hesitate to put their money in post offices and banks.
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S K Sur Kolkata
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number