The Monetary Authority of Singapore's (MAS) request of banks on dividends payable is more a directive than guidance (MAS urges banks to cap dividends in face of economic uncertainty, July 30).

It is seen more as interference in the marketplace and market mechanism.

Such a move would require retail shareholders' consent. This MAS directive bulldozes the rights of retail investors.

Yet there has been no change in interest rates for loans, mortgages and so on, which also fall under the purview of MAS.

The interfering in dividend mechanism without touching on loans, mortgage rates and the whole gamut of banking operations is grossly inappropriate.

MAS has failed to recognise the value of investments for retail investors and the income derived from such investments.

Retail investors who depend on dividend income to sustain and help pay for loans and mortgages suffer the most. Those stuck with lock-in period loans are even more badly affected.

The MAS request of banks is also a discreet directive to private enterprise and other public listed companies. It is not a fair equation.

Rajagopalan Krishnamoorthy