11 April 2006 ~ 0 Comments

Dalal Street- bound


Dalal Street- bound The Postal babus will soon be following the sensex with more interest than they have ever done in their lives. The North Block, after much debate, has decided to allow the Department of Post (DOP) to deploy funds from its insurance schemes in the stock market through mutual funds. Given their lack of experience on the uncertain tracks of the Dalal Street, the postal babus will of course need outside help, at least during the early part of their market entry. In fact the DOP will soon be scouting for Asset Management companies (AMCs) who will be deploying the funds in the market. The babus further reveal that though the bidding process to select the AMC is likely to start by the end of the first half of the current fiscal, investments would begin only next year. The Postal babus insist that involvement of AMCs will only be a temporary affair and DOP’s own special cell will gradually takeover the investment activity from the AMC. But the moot point is whether the inexperienced babus would be able to develop the requite skills to execute the grand design of Chidambaram’s men. North Block’s idea of linking Postal Life Insurance (PLI) and Rural PLI funds to the market has been dictated by a buoyant stock market and of course its own desire to bring down government debt. But given that the hard earned savings of an estimated 69 lakh subscribers will be at stake, the Postal babus need to tread carefully on this ‘tricky path’.

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