28-JUNE-2024-Daily-Current-Affairs

SEBI TIGHTENS NORMS ON FINANCIAL INFLUENCERS, EASES RULES FOR DELISTING 

TOPIC: (GS3) ECONOMY – SOURCE: THE HINDU 

The Securities and Exchange Board of India (SEBI) has implemented new regulations to curb the influence of unregulated financial influencers on investors. This move aims to ensure transparency and protect investors from misleading information. 

Key Points 

• Restrictions on Unregulated Financial Influencers 

• SEBI has prohibited brokers and mutual funds from using unregulated financial influencers for marketing and advertising. 

• This decision is to prevent investors from being misled by inappropriate claims made by unregulated entities. 

• Financial influencers focusing on investor education are exempt from these restrictions. 

Popularity of Financial Influencers 

• The rise in the Indian stock market has increased the popularity of financial influencers on platforms like YouTube and Instagram. 

• These influencers often have a significant following and provide advice on stocks and investments. 

SEBI’s Responsibility and Enforcement 

• Regulated entities must ensure their associates adhere to SEBI’s conduct rules, including not promising assured returns. 

Additional SEBI Measures 

Derivative-linked Stocks 

• New criteria have been introduced to determine which stocks can be linked to derivative products like futures and options. 

• The number of stocks eligible for derivative trading will slightly increase. 

Changes to Delisting Rules 

• SEBI has made it easier for companies to delist from stock exchanges. 

• Companies can now offer shareholders fixed prices for shares as an alternative delisting mechanism, replacing the reverse book-building method. 

Finfluencers 

Finfluencers are social media personalities who focus on financial topics. They use their platforms to share information and advice, often in an engaging way,  on a variety of financial matters. Here’s a breakdown of what finfluencers do: 

• Financial Content: They create content on various financial subjects like budgeting, investing in stocks and mutual funds, real estate, and even cryptocurrency. 

• Accessibility: They aim to make financial information understandable and approachable for a general audience. 

• Engagement: They use social media features like videos, posts, and live streams to connect with their followers and answer their questions. 

Benefits: 

• Finfluencers can potentially fill a gap in financial literacy, especially for younger generations who are comfortable consuming information online. 

• They can provide a fresh perspective and make financial topics more relatable. 

Listing: 

• This is the process by which a company’s shares become available for trading on a stock exchange. 

• Companies need to meet specific financial and compliance requirements set by SEBI and the stock exchange itself. 

• This ensures transparency and protects investors. 

Delisting: 

• This is the removal of a company’s shares from the stock exchange. 

• It can be voluntary or compulsory. 

• Voluntary Delisting: A company decides to go private or merge with another company. 

• Compulsory Delisting: This happens when a company fails to comply with listing regulations, such as minimum public shareholding or financial performance. SEBI also outlines the process for delisting and provides an exit mechanism for investors through a bidding process. 

Conclusion 

SEBI’s new regulations are a significant step towards enhancing market integrity and protecting investors from misleading information. These measures aim to ensure a more transparent and fair market environment. 

Multiple choice question: 

1. What is the minimum public shareholding requirement as per current SEBI regulations?

1. 10% 

1. 20% 

1. 25% 

1. 35% 

ANSWER: C 

EXPLANATION: 

SEBI regulations require listed companies to maintain a minimum public shareholding of 25% of their total equity capital. This means that at least 25% of the company’s shares should be held by public investors who are not promoters or controlling entities. 

WHY GOVT MUST CREATE A BUFFER STOCK OF ALL MAIN FOOD ITEMS 

TOPIC: (GS3) ECONOMY – SOURCE: INDIAN EXPRESS 

Open market sales of wheat and chana have effectively curbed inflation in cereals and pulses. Extending buffer stocks to other staples is crucial in the face of climate-induced supply shocks and price volatility. 

Impact of Buffer Stocks 

• Inflation for cereals stood at 8.69% in May, and 17.14% for pulses. 

• Government buffer stocks, particularly wheat and chana, helped prevent higher inflation rates. 

Wheat Market Intervention 

• In 2022-23, 34.82 lakh tonnes of wheat were sold from FCI stocks. 

• This rose to 100.88 lakh tonnes in the following fiscal year. 

• Retail inflation for cereals and wheat dropped significantly due to these sales. 

Chana Buffer Stock Benefits 

• NAFED’s procurement of bumper chana crops in 2021-22 and 2022-23 helped stabilize prices. 

• Chana prices would have been higher without these interventions. 

• Since July 2023, NAFED sold 14.06 lakh tonnes of chana through open market e-auctions. 

The Case for Expanding Buffer Policy 

• Overall CPI inflation was 4.75% in May, with food inflation at 8.69%. 

• Climate change exacerbates food price volatility, complicating RBI’s monetary policy. 

• Building buffer stocks of all essential food items could moderate market prices during crop failures. 

Proposed Expansion 

• Current MSP procurement focuses on rice, wheat, and select pulses and oilseeds. 

• Expanding procurement to include staple vegetables and skimmed milk powder is suggested. 

• This would ensure both households and bulk buyers do not drive up prices during shortages. 

Minimum Support Price. 

It’s a government intervention in the agricultural sector of India to protect farmers from sharp falls in the prices of their produce.  

• Who decides MSP? The Government of India, based on recommendations by the Commission for Agricultural Costs and Prices (CACP), announces MSP prices twice a year. 

• For what items? MSP is set for 22 crops, including major cereals like paddy (rice) and wheat, pulses (like lentils and chickpeas), oilseeds (like mustard and groundnut), and some commercial crops (like cotton and sugarcane). 

Key points about MSP: 

• Price Guarantee: It acts as a floor price, ensuring farmers get a minimum price for their covered crops if market prices fall below MSP. 

• Procurement Mechanism: The government agencies like Food Corporation of India (FCI) can directly procure grains from farmers at MSP if market prices are unfavorable. 

Objectives: The primary goals of MSP are to: 

• Support farmers’ income and prevent distress sales. 

• Encourage crop production for food security. 

• Maintain buffer stocks of essential food grains. 

Conclusion 

Extending buffer stock policies to more staples can stabilize prices and protect consumers from inflation. This strategy would enhance food security and market stability in the face of unpredictable climate impacts. 

Multiple choice question: 

1. Consider the following statements about MSP in India:

1. MSP is announced for all agricultural commodities grown in India. 

1. The government agencies are obligated to procure all crops at the announced MSP. 

1. MSP is based solely on the production cost of the crops. 

Which of the statements given above is/are correct? 

1. 1 only 

1. 2 only 

1. 3 only 

1. None of the above 

ANSWER: D 

EXPLANATION: 

MSP is indeed announced for 22 selected crops, not all agricultural commodities. 

Government procurement at MSP is not mandatory for all crops. It happens selectively when market prices fall below MSP, and agencies like FCI intervene to support farmers. 

MSP is determined considering various factors including the production cost of the crops. Other factors include: 

• Fair return to farmers for their investment and labor. 

• Price trends in the market for the specific crop. 

• Cost of living for farmers. 

WITH NEW BUDGET, CHANCE FOR NEW VISION FOR INDIA 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

In India, the annual budget is crucial for setting the government’s economic vision. Unlike advanced economies, where the budget is a routine event, India’s budget presentation has significant implications, influenced by its colonial legacy and current economic goals. 

Importance of the Budget 

• The budget outlines the administration’s vision for the economy. 

• Budget announcements at the start of a government’s term are particularly significant for setting long-term economic policies. 

Expected Vision for 2024-25 Budget 

• Aim: Transform India into a developed economy (“Viksit Bharat”) by 2047. 

• Achieving a per capita income growth from $2,500 to $14,000. 

• Sustaining 9.2% growth rate in nominal dollar terms to reach upper middle-income status by 2030 and higher-income status by 2042. 

Employment and Manufacturing: 

• Boost labour-intensive manufacturing to leverage the demographic dividend. 

• Enhance trade and competitiveness without compromising on services. 

• Implement factor market reforms to improve capital to labour ratio. 

Public Finance: 

• Shift fiscal policy towards a scientific approach with public debt to GDP ratio as a medium-term anchor. 

• Decrease India’s debt-to-GDP ratio and fiscal deficit. 

• Consider establishing an independent Fiscal Council for better fiscal management. 

Other Key Areas: 

• Develop agriculture markets. 

• Improve higher education and health outcomes. 

• Meet carbon emission limits. 

Conclusion 

The 2024-25 budget is an opportunity to set a long-term economic vision. Achieving 10% real GDP growth is feasible with sustained macroeconomic and political stability, and a push for physical and digital infrastructure. The budget should signal a commitment to comprehensive reforms to meet economic aspirations. 

Multiple choice question: 

1. With reference to the Union Budget of India, consider the following statements:

1. The Railway Budget was merged with the General Budget in the year 2017. 

1. The NITI Aayog is responsible for presenting the Union Budget to the Parliament. 

1. The budget differentiates between revenue expenditure and capital expenditure. 

Which of the statements given above is/are correct? 

1. 1 and 2 only 

1. 2 and 3 only 

1. 3 only 

1. All of the above 

ANSWER: C 

EXPLANATION: 

 The Railway Budget was indeed merged with the General Budget in the year 2017. This means there’s now a single unified budget for both sectors. 

The NITI Aayog is a think tank that provides economic and social policy advice to the government. It’s not responsible for presenting the Union Budget. The finance minister presents the budget to the Parliament. 

The budget makes a clear distinction between revenue expenditure (day-to-day expenses of the government) and capital expenditure (spending on creating assets like infrastructure). 

UNWARRANTED ARREST 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: TIMES OF INDIA 

The recent arrest of Delhi Chief Minister Arvind Kejriwal by the Central Bureau of Investigation (CBI) in connection with the Delhi excise policy corruption case has raised concerns about its timing and intent.  

This incident brings to light issues of judicial processes, the use of legal instruments, and the integrity of investigative agencies. 

Definition of Warrant 

A warrant is a legal document issued by a judge or magistrate that authorizes the police to conduct a search, seizure, or arrest. Warrants are typically required for: 

• Arrests in cases where the accused is not caught in the act. 

• Searches of private property without the owner’s consent. 

• Seizure of evidence in criminal cases. 

However, a warrant is not required in cases where: 

• An offense is committed in the presence of a police officer. 

• There is a risk of the accused fleeing. 

• Immediate action is needed to prevent the destruction of evidence. 

Types of Bail 

• Regular Bail: Granted to a person after arrest, allowing them to remain free until trial. 

• Anticipatory Bail: Sought before an arrest, providing protection from arrest. 

• Interim Bail: Temporary bail granted during the pendency of an application for anticipatory or regular bail. 

The Arrest of Arvind Kejriwal 

Timing and Context 

• The arrest occurred just before the Supreme Court was to hear an appeal against the Delhi High Court’s stay on his bail. 

• The High Court had reserved its detailed order, yet the CBI proceeded with the arrest on June 26. 

Investigation Duration 

• The investigation into the excise policy has been ongoing for nearly two years. 

• Several suspects have been arrested, with evidence primarily based on statements from approvers. 

Judicial Observations 

• The vacation judge granting bail believed indefinite incarceration was unjust without direct evidence. 

• The High Court felt the lower court did not consider all material and sufficient opportunity for the prosecution. 

Political Implications 

• The case reflects the perceived misuse of legal systems to target political opponents. 

• It suggests the need for impartiality and thorough documentation by investigative agencies. 

Conclusion 

The arrest of Arvind Kejriwal highlights the complexities and potential misuse of judicial and investigative processes. It underscores the importance of impartiality, thorough investigation, and adherence to legal principles in upholding justice and public trust in the legal system. 

BANNERGHATTA BIOLOGICAL PARK (BBP) 

TOPIC: (GS3) ENVIRONMENT – SOURCE: DOWN TO EARTH 

The Bannerghatta Biological Park (BBP), an integral part of the Bannerghatta National Park, recently inaugurated South India’s first and the country’s largest leopard safari.  

This park is a significant site for eco-recreation, eco-tourism, and wildlife conservation. 

About Bannerghatta Biological Park (BBP) 

• Establishment: Became an independent entity in 2002, initially part of Bannerghatta National Park. 

• Area: Initially 545.00 hectares, extended to 731.88 hectares. 

• Location: Situated 22 km south of Bengaluru city, Karnataka. 

• Units: Comprises a Zoo, Safari, Butterfly Park, and Rescue Centre. 

• Unique Feature: First biological park in India with a fenced, forested elephant sanctuary. 

Key Facts about Bannerghatta National Park 

• Location: Near Bangalore, Karnataka, in the Anekal range hills. 

• Declaration: Became a National Park in 1974. 

• Butterfly Enclosure: Inaugurated India’s first butterfly enclosure in 2006. 

• River: The Suvarnamukhi stream is the main water source. 

Vegetation Types: 

• Dry Deciduous Scrub Forests 

• Southern Tropical Dry Deciduous Forests 

• Southern Tropical Moist Mixed Forests 

• Flora: Includes species such as Narcissus latifolia, Schleichera oleosa, Sandalwood, Neem, Tamarind, Bamboo, and Eucalyptus. 

• Fauna: Home to endangered species like the Asian Elephant, Indian Gaur, Tiger, Sambar Deer, Leopard, Wild Dog, Sloth Bear, Pangolin, and more. 

Conclusion 

Bannerghatta Biological Park, with its diverse flora and fauna, plays a crucial role in conservation and eco-tourism in South India. The inauguration of the leopard safari further enhances its significance as a major wildlife attraction. 

BIOMASS BRIQUETTES  

TOPIC: (GS3) ENVIRONMENT – SOURCE: THE HINDU 

Biomass briquettes have emerged as a viable fuel alternative in the power and electricity generation sector.  

These eco-friendly briquettes are increasingly being utilized, particularly in developing countries with limited access to traditional fuel sources. 

About Biomass Briquettes 

• Composition: Made from compact blocks of organic materials such as agricultural residues, forestry wastes, and industrial by-products. 

• Applications: Used for heating, cooking fuel, and electricity generation. 

Advantages of Biomass Briquettes 

• Environment Friendly: Created from easily available biomass waste, often found in rural areas.Utilizes organic matter like invasive species and agro-waste. 

• Affordability: Can be produced by hand from freely available materials. 

• Carbon Neutrality: Release no additional carbon dioxide into the atmosphere when burned.Mitigates greenhouse gas emissions by reducing reliance on fossil fuels. 

Understanding Carbon Neutrality 

• Definition: Achieving a balance between emitting carbon and absorbing it from the atmosphere. 

• Carbon Sequestration: The process of removing carbon dioxide from the atmosphere and storing it in carbon sinks. 

Conclusion 

Biomass briquettes offer a sustainable and cost-effective fuel alternative. Their use not only supports waste management and reduces greenhouse gas emissions but also contributes significantly to achieving carbon neutrality. This makes them an essential component in the global effort to mitigate climate change. 

THE ULLAS-NAV BHARAT SAAKSHARTA KARYAKRAM (NEW INDIA LITERACY PROGRAM) 

TOPIC: (GS2) POLITY AND GOVERNANCE – SOURCE: INDIAN EXPRESS 

Ladakh has recently become the first administrative unit in India to achieve full functional literacy under the ULLAS-Nav Bharat Saaksharta Karyakram (New India Literacy Program).  

This significant milestone underscores the effectiveness of the ULLAS initiative, which is designed to promote literacy and lifelong learning across the nation. 

About ULLAS-Nav Bharat Saaksharta Karyakram 

• Overview: ULLAS (Understanding Lifelong Learning for All in Society) is a centrally sponsored scheme implemented from 2022-2027. 

• Alignment: The scheme aligns with the recommendations of the National Education Policy (NEP) 2020. 

• Aim: To empower adults aged 15 and above who missed formal schooling and mainstream them into society to contribute to the nation’s growth. 

Components of ULLAS 

• Foundational Literacy and Numeracy 

• Critical Life Skills 

• Basic Education 

• Vocational Skills 

• Continuing Education 

• ULLAS App: Facilitates registration of learners and volunteers through self-registration or surveys. It serves as a digital gateway to diverse learning resources via the DIKSHA portal. 

DIKSHA Portal 

A national platform for school education, initiated by NCERT under the Ministry of Education. 

Features: 

• Provides e-content for schools through an online portal and mobile app. 

• Developed on principles of open architecture, open access, open licensing, choice, and autonomy. 

• Built on open-source technology to support various teaching and learning solutions. 

• Core Building Blocks: Encompasses National Digital Education Architecture (NDEAR) components, including energized textbooks, online courses, content authoring, interactive quizzes, question banks, chatbot, analytics, and dashboard. 

• Support for CWSN: Offers audiobooks, ISL (Indian Sign Language) videos, and a dictionary to aid Children With Special Needs. 

Conclusion 

The successful implementation of ULLAS in Ladakh highlights the program’s potential to transform education and literacy across India. By integrating advanced digital tools and inclusive educational practices, initiatives like ULLAS and DIKSHA are paving the way for a more literate and empowered society. 

THE SPACE MAITRI MISSION 

TOPIC: (GS3) SCIENCE AND TECHNOLOGY – SOURCE: THE HINDU 

The Australian government recently entered into an $18 million memorandum of understanding (MoU) with NewSpace India Limited (NSIL), the commercial arm of the Indian Space Research Organisation (ISRO), under the Space MAITRI mission.  

This initiative marks a significant advancement in the strategic partnership between India and Australia in the space sector. 

About Space MAITRI Mission 

Space MAITRI (Mission for Australia-India’s Technology, Research, and Innovation) aims to strengthen the collaboration between commercial, institutional, and governmental space organizations from both nations. 

Focus Areas: 

• Debris Management and Sustainability: Promotes responsible space operations and addresses the threat of space debris. 

Key Agreement: 

• NewSpace India Limited will launch Australia’s Space Machines Company’s second Optimus spacecraft in 2026. 

• The 450kg Optimus spacecraft, the largest Australian-designed and built spacecraft, will be launched on ISRO’s Small Satellite Launch Vehicle (SSLV). 

Key Facts about NewSpace India Limited (NSIL) 

• Establishment: Incorporated in March 2019 as a commercial arm under the Department of Space (DoS), Government of India. 

• Purpose: Set up to undertake high-technology space-related activities in India. 

• Space Policy Reforms: Under the 2020 space policy reforms, NSIL is to undertake operational satellite missions on a “demand-driven” model, building, launching, owning, and operating satellites to provide services to customers. 

• Headquarters: Located in Bengaluru. 

Conclusion 

The Space MAITRI mission signifies a pivotal collaboration between India and Australia, emphasizing responsible space operations and sustainability. With the involvement of NewSpace India Limited, this partnership is poised to foster significant advancements in space technology and innovation, reinforcing the strategic ties between the two nations.