India takes steps to protect user privacy

India has the largest number of internet users in the world

By N.R.I. Problems/H. P. Ranina

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Photo for illustrative purposes only. — KT file

Published: Tue 13 Jun 2023, 3:49 PM

Last updated: Tue 13 Jun 2023, 3:50 PM

Question: India has the largest number of internet users in the world. Are there enough regulations in place to protect user privacy?

ANSWER: India has enacted legislation like the Digital India Act and the Digital Personal Data Protection Bill. India has also entered into an agreement with the US and the European Union to create trusted and resilient supply chains for electronics and in technologies covering semi-conductors, quantum computing and artificial intelligence. With the entering into of these agreements, several steps will be taken in the next eight to twelve months for strengthening regulations related to bias of algorithms and copyright. It is recognised that India’s presence on the global internet ecosystem is extremely significant. The Indian government expects that this will lead to several joint ventures being entered into apart from capital flows in semi-conductors and electronic goods.

Question: Cost of food is going up all over the world. Will India be able to provide adequate food security to millions of vulnerable citizens in the coming years?

ANSWER: One of the problems faced in India is lack of adequate storage facilities for grains and cereals leading to wastages. To address this problem, the Indian government has decided to create the world’s largest grain storage capacity which will entail an investment of Rs1 trillion. This will be done through convergence of different schemes which are monitored by the Ministries of agriculture, food & public distribution, and food processing. It is expected that this initiative will help reduce crop damage and strengthen the country’s food security. The cooperative sector will be involved in creating 70 million tonnes of grain storage capacity. It is also expected that this move will help the farmers to secure modern grain storage facilities in their blocks through primary agriculture credit societies. At present, non-availability of storage facilities has been forcing farmers to sell their produce at a low price. Thus, by setting up silos and warehouses in every block of each district of India, farmers will earn additional income by holding on to their stocks and selling them at the right time at market driven prices.

Question: While the mutual fund industry has come of age in India, some problems have still emerged which have rattled the confidence of small investors. Is the regulatory framework strong enough to prevent frauds?

H.P. Ranina is a practising lawyer, specialising in tax and exchange management laws of India.

ANSWER: The Securities & Exchange Board of India (Sebi) has been taking measures to penalise such mutual funds which have been found to act against the interest of investors. The chairperson of Sebi has directed the mutual fund industry to act decisively against their employees and executives who are guilty of misdemeanour. The Sebi chief has warned that if the fund houses do not act swiftly and strictly, Sebi will come down heavily and take action against them. In addition, in order to tighten disclosure norms for foreign funds with concentrated holdings, Sebi has asked for details and information to identify the ultimate owners of the stocks and securities. A consultation paper has been floated recently to ensure transparency primarily with a view to ascertain the final beneficial owner. In the case of some portfolio investors, it was found that a substantial portion of the equity portfolio was invested in group companies of a single promoter. There are at present minimum public shareholding rules which mandate that promoters should not hold more than 75 per cent stake in a listed company. As some promoters have been using the FPI route to bypass this limit, Sebi has been active in seeking information in order to determine the true amount of investment in publicly listed companies. This is being done to ensure that price manipulation is not resorted to by errant promoters.

H.P. Ranina is a practising lawyer, specialising in tax and exchange management laws of India.