The recent news about Sahara seeking the Supreme Court’s nod and an exemption from probe to sell 88 properties to Adani [CNBC TV18] brings to the forefront a persistent challenge in our financial landscape: how do we integrate large, complex asset pools, often mired in historical irregularities, back into the productive economy effectively and transparently?
It makes me reflect on discussions I've had years ago about the intricate relationship between capital, regulation, and the public good. In 2013, I wrote about the Pakistani government's innovative step of allowing a "no questions asked" incentive for investors buying stocks, provided they held them for over 120 days. At the time, I suggested extending such "no questions asked" incentives in India for funneling undeclared wealth into vital areas like building educational institutions, infrastructure projects, health and sanitation, and eco-friendly green energy Learning from Anywhere Everywhere. This concept also aligned with my earlier thoughts on how to effectively "Convert Black to White: The SEBI Way" Convert Black to White: The SEBI Way. My belief was that such measures could unlock colossal capital—potentially "Rs 50 lakh Crores"—without necessitating direct foreign investment. The core idea was about shifting stagnant, undeclared funds into a dynamic, productive cycle.
Contrasting this with Sahara's current plea for exemption from a probe highlights the ongoing tension. This isn't a new conundrum; discussions around entities like Sahara, including ideas such as "Be Sahara Shree" Be Sahara Shree and considerations in the "Sahara Refund Case" Sahara Refund Case, demonstrate a long history of complexities in managing such large asset pools. While the need for judicial oversight is undeniable given the history, it also underscores the very complexities I touched upon. The goal should always be to bring capital into the light, ensuring it serves a constructive purpose, rather than being caught in prolonged legal entanglements.
My earlier thoughts on P2P lending, too, explored the potential for "Foreign Direct Investment by Individuals (FDII)" as a way to bring "money that Indians have secretly stashed abroad" back into the economy by reducing "red tape" Red tape grounds P2P startups as investors stay clear of space. Though different in context, the underlying philosophy remains: simplify legitimate pathways for capital to flow, and foster an environment of transparency, rather than allowing it to stagnate or remain under a cloud.
Seeing how the Sahara case has unfolded, it’s striking how relevant those earlier insights still are. I feel a sense of validation for having brought up the idea of proactive mechanisms to deal with such situations. Had we devised clearer, more incentivized channels for capital regularization, perhaps some of these assets could have been integrated into our growth story more smoothly. Reflecting on it today, there is a renewed urgency to revisit these ideas, because they clearly hold value in the current context of seeking efficiency and transparency in India's vast and intricate financial landscape.
Regards,
[Hemen Parekh]
Any questions? Feel free to ask my Virtual Avatar at hemenparekh.ai
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