9 PM Daily Current Affairs Brief – February 16th, 2022

Mains Oriented Articles

GS Paper 2

• The Yogi, The CEO & The Lesson – On Algo Scam
• Gaming and banning: On ban on online games
• The pathology of school closure in India
• The importance of caste data
• India must prioritise stability in Myanmar

GS Paper 3

• The cryptosphere needs amplified risk warnings
• Power of giving: Fund-starved sectors like science, health, education, rural development need generous HNIs
• Engel’s law and Pandemic’s impact on our food expenditure

Prelims Oriented Articles (Factly)

• Anti-mob lynching bills passed by 4 Assemblies at various levels of non-implementation
• Phensedyl smuggling a challenge for BSF
• Explained: The Ravidassia identity
• PM Gati Shakti National Master Plan(NMP)-22 Greenfield Expressways, 23 key infrastructure projects among others
• Mapping of 6 lakh villages under the SVAMITVA scheme and pan-India 3D Maps for 100 cities undertaken, which will be a game changer for India
• Novel tools for deciphering mechanisms associated with learning and memory developed by Indian Scientists
• Social Justice and Empowerment Ministry to launch a Scheme for Economic Empowerment of DNTs (SEED)
• Cabinet clears setting up of G20 Secretariat
• Everyday Economics: What is an IPO?

Mains Oriented Articles

GS Paper 2

The Yogi, The CEO & The Lesson – On Algo Scam

News: Recently, the Securities and Exchange Board of India (SEBI) has issued the final order on the “Algo scam” at the National Stock Exchange (NSE).

What is “algo scam” and what has happened?

Read more here: https://forumias.com/blog/governance-breakdown/

What does this reveal?

One, even if the information shared wasn’t price-sensitive, had nothing to do with trading positions, and the leak did not hurt investors, it was still a data breach from the corner office.

Two, NSE was formed to counter BSE, which in the early 90s had become a gamblers’ den. But now SEBI is dealing with a case where professional managers were acting as servants of ‘outsiders’ while NSE’s board of directors did not report it.

What is the way forward?

The matter was hidden as long as the exchange made money and stocks rose. This scam is a curious case that should be added as a chapter in the B-School syllabus. It is a story of personal flaws which shadowed transparency, the excesses of a company as it gains power, the pitfalls of monopoly, and inroads that outsiders like godmen or politicians can make in a business.

Gaming and banning: On ban on online games

News: Recently, legislative attempts to prohibit online gaming have failed under judicial scrutiny.

What was the issue?

First, the amendments brought to existing regulations on betting and gambling in Karnataka have been struck down by the State’s High Court. Also, last year, the Madras High Court invalidated similar amendments that targeted online rummy and poker.

Second, the law was called a ‘public order’ law, but the Karnataka High Court has rejected this. The law also referred to “the menace of cyber games” and the registration of about 28,000 cases by the police in the State in the last three years.

Third, the government said that many have taken their own lives and families ruined as a result of gaming addiction and indebtedness.

Why the judiciary has struck down the amendments brought to the existing regulations on betting and gambling in Karnataka?

One, the provisions of the laws failed to make a distinction between games of skill and games of chance and sought to bring under the proscription all games played online, regardless of the extent to which skill was required. It attempted to make all online gaming punishable, even if they involved skill.

Two, in both cases, the legislature assumed a paternalistic role with the aim of protecting the people, especially the youth, from the temptations of online gambling.

Three, the court has pointed out, if the objective was to curb the menace of gambling, the government should prohibit activities that amount to gambling and not the games of skill. The government did not consider the option of regulating betting on games of skill.

Four, the idea of betting and gambling have an element of ‘information, expression and entertainment’ that has constitutional protection. Gaming platforms are also legitimate businesses that enjoy the freedom of trade when used for online versions of games of skill.

Five, the ban has not targeted the gambling part but the ‘online’ part. Hence, it is clear that an absolute ban could not have been upheld by the court.

The pathology of school closure in India

News: According to a United Nations report, India has become the country with the second longest COVID-19 pandemic-linked school closure in the world.

Why Indian schools remain reluctant to reopen?

First, misinformation such as ‘the third wave would affect children’ made by influential individuals have scared parents.

Second, occasional incidents of children being hospitalised are shown repeatedly on television channels to sensationalize the matter and gain target rating point (TRP).

Third, the small section of privileged parents is being treated as representatives of all parents. The surveys had indicated that poor and middle-class parents from all parts of the country want schools to be open. But they are not involved in decision-making, and hence it deprives children from marginalized backgrounds of their right to education.

Fourth, the Government has not responded to misinformation timely and the matter of reopening schools has been politicized. Also, the experience of the second wave has shaken the trust of the average citizen in the Government.

What has been done by the government?

In the Union Budget 2022-23, government has proposed ‘one class, one TV channel’ programme under Pradhan Mantri eVidya. It aims to impart supplementary teaching. It will change the perception of equating learning with syllabus completion.

However, the School Children’s Online and Offline Learning (SCHOOL) survey in India has shown that TV-based education programs are completely ineffective.

How adoption ‘PERI’ can help?

To ensure that schools start functioning at full capacity, a structured approach of P-E-R-I: Prepare; Engage; Reimagine and Innovate needs to be adopted. Also, the necessary planning and perspective on the risk of COVID-19 are essential.

In case of rise in COVID-19, every State needs to develop a road map to prevent avoidable disruptions. The objective criteria for school closure need to be developed and such a decision should be implemented in a decentralised manner at the block or the district level.

Also, engaging with key stakeholders including parents, and raising awareness about the importance of in-person education and the concept of holistic child development is required. It will help in countering any misinformation and bring learning on track.

What is the way forward?

First, Anganwadi, Pre-nursery, and nursery schools should be opened urgently and immediately to recover from learning and nutrition loss.

Second, Special initiatives and socio-political engagement need to be started so that every single child who is in need of education or who has dropped out or has been pushed into child labour can return to in-person learning.

Third, there is a need to revive school health services and institutionalize regular counselling and mental health services for school-age children.

Fourth, there is a need to prepare a medium to long-term plan to compensate for the learning loss, with a focus on overall child development through strategic and innovative thinking.

Fifth, hesitation in reopening institutions is the symptom of a flawed education system and shows the value that is attached to school education. Hence, it is a socio-political responsibility to ensure the safe return of every child in the country.

The importance of caste data

News: Recently, the Supreme Court upheld the 27% quota for Other Backward Classes (OBC) in the All-India Quota seats for the National Eligibility-cum-Entrance Test.

What does the judgement say?

One, the judgement reiterated that reservations for backward classes were not an exception but an extension of the principle of equality under Article 15(1) of the Constitution.

Two, the SC also pointed out that disparities are not limited to the issue of access to good education or financial constraints alone. It also extends to psychological and social development due to the inherited cultural capital of castes.

Read more here: Supreme Court upholds validity of OBC quota in NEET admissions 

Why there is a need for caste data?

First, many believe that affirmative actions increase caste differences and that’s why there is a need for a “casteless society”. But, Justice D.Y. Chandrachud pointed out that “castelessness” is a privilege that only castes, which are developed, can afford. Because they have already translated caste-related benefits, into social, political, and economic capital.

On the other hand, individuals who belong to the lower castes need to retain their caste identity in order to claim the benefits of measures such as reservation.

Second, many times political parties promise reservation for communities to get votes without any credible data collection exercises. For instance, Supreme Court struck down the reservation for the Maratha community.

The court has observed that when more people aspire for backwardness instead of forwardness, the country itself stagnates, which does not fulfill constitutional objectives. Hence, credible data will help in addressing the rising demand for reservations.

Three, the data concerning the Scheduled Castes and Scheduled Tribes have been included in the Census, but there is no similar data on OBCs. Hence, there is a need for credible exercise to retain the faith of citizens. T

Four, the Socio-Economic and Caste Census (SECC) conducted in 2011 has been called “faulty” and “unreliable”. The Mandal Commission’s recommendations were also criticised as being based merely on the “personal knowledge” of the members of the commission and sample surveys.

Five, in the Indra Sawhney case, the Supreme Court held that the States must conclude the “backwardness” of a particular class of people only after proper assessment and objective evaluation. Hence, there should be a periodic review by a permanent body of experts.

Also, the National Commission for Backward Classes Act, 1993, provides that the Central government should revise lists every 10 years to exclude those classes which have ceased to be backward and include new backward classes. However, all these exercises have not been done to date.

Six, caste data will enable independent research and ensure effectiveness. Thus, people who support or oppose reservation will be more informed of their views. It is not reservation that creates the current divide in our society, but the misuse or the perceived misuse of reservation.

What is the way forward?

If reservation results from violent agitations and political pressures, then it will always be under the shadow of caste and class politics. Hence, impartial data and subsequent research can save the most backward classes from caste and class politics.

India must prioritise stability in Myanmar

News

One year ago, the military in a coup attempted to take over power from the elected civilian government and installed a caretaker government. A lot has changed since then in Myanmar and this requires a diplomatic shift from New Delhi’s side.

What has been situation in Myanmar?

After the coup, the deposed civilian lawmakers put together their own government known as the National Unity Government (NUG), which commands the support of the majority.

Apart from this the coup faced popular resistance from the first day including a wide scale civil disobedience movement. The military in response to this has been firing openly at unarmed protestors, conducting violent night time raids in residential areas, and blocking social media sites. There has also been an armed resistance that has gripped the whole country mainly under the civilian militias, called People’s Defence Forces (PDF).

This has forced military to fight on multiple fronts and powerful ethnic armed groups in the north, northwest and east have joined forces with the PDFs. There have been thousands of clashes between these groups and the army, much more than in Syria or Afghanistan.

What has been India’s approach to deal with Myanmar so far?

Since the coup, India has taken a balanced diplomatic approach on Myanmar, calling for restraint, restoration of democracy and release of political prisoners, but also maintaining its lines of communication with the military. Delhi has also firmly stayed away from imposing sanctions on the junta.

Why India’s approach needs a shift?

The approach that India must maintain its relationship with the junta to counter China and secure its national interest is no longer efficient.

This is because the military is no longer a force for stability in Myanmar. It is incapable of providing the political, economic and social stability that India needs in Myanmar to advance its interests, including development projects.

Economy is rapidly sinking and public faith in the military as a state institution is at its lowest. Military has been facing armed resistance almost in the entire country.

Under the current military regime even the North eastern area of India which shares its border with Myanmar has seen massive decline in security. Chin state, bordering Mizoram and Manipur, has seen dramatic military offensives in civilian areas, which have forced thousands to flee into India. At least four Indian insurgent groups have re-established their camps inside Myanmar, which could act as staging posts for attacks inside India.

India must adopt an approach that can not only provide a stable political environment overall, but also effectively secure its security interests along the border.

What is the way forward?

India can engage more with the NUG as it enjoys much more mass popularity than the military, which means it is in a position to restore calm. It can also engage with the PDFs and ethnic armed organisations , they have also demonstrated sufficient capability in countering the military’s strategic dominance.

Even China realises the new reality and has publicly communicated with pro-democracy forces in Myanmar. However, China does not have strong links with the new PDFs. So, if India really wants to offset Chinese influence in Myanmar, it needs to take this opportunity to forge new friendships.

GS Paper 3

The cryptosphere needs amplified risk warnings

News: RBI officials have done well to caution crypto enthusiasts by talking about tulip mania and Ponzi schemes. While the case for a digital-token ban remains weak, risk awareness must rise.

Offer documents of public offerings give an insight into the associated risk factors to potential investors. But there is no such equivalent in Cryptocurrency. Hence, in this context, the voices of our central bank’s top officials need to be amplified.

Is Cryptocurrency a threat to monetary policy?

If digital coinages widely replace rupees as tokens of exchange, it would blunt our tools of monetary policy. This can endanger the management of our economy, but this worry seems overblown right now because the cryptosphere is too crowded for any single ‘stablecoin’ to emerge as a winner.

Is a ban on Cryptocurrency imminent?

With top RBI officials coming out with strong views against Cryptocurrency and with Finance Minister stating that taxing Crypto is not equivalent to legalising it, a ban is a possibility.

Moreover, a ban on Crypto will not hamper the Blockchain led innovation in any manner.

What is the way forward?

Threat to the monetary policy can be taken care of if RBI keeps inflation under control and by deploying its own Central Bank Digital Currency (CBDC).

Further, a crypto ban would be hard to enforce, given the secrecy with which password ‘keys’ can be held.

Also, there’s no sense in forgoing a source of tax revenue.

To make the public aware of risks associated with investing in Crypto assets, public-warnings need to get even louder. Suitably alerted to risk factors, people should be left at liberty to buy the tokens they want.

Power of giving: Fund-starved sectors like science, health, education, rural development need generous HNIs

News: Recently, families of IT firm Mindtree’s co-founders Subroto Bagchi and NS Parthasarathy donated Rs 425 Crore to Indian Institute of Science. IISc.

It should be noted that last year, IISc broke into the top 100 band in Times Higher Education’s Reputation Ranking of global universities. The donated amount will utilized to set up medical facilities focussed on cutting-edge clinical research and innovation.

Philanthropy in India is growing, but the fund flows are too miniscule, despite the country boasting many high net-worth individuals (HNIs).

How do Indian foundations fare as compared to global foundations in terms of assets and spend rate?

A Harvard Kennedy School study of nearly 1.6 lakh foundations across 22 major countries revealed that

– 97% of foundation assets totalling $1.5 trillion are concentrated in the US and Europe.

– Not only are Indian foundations’ ranking abysmally low, their spend rate (expenditure versus assets) was a low 3% against 9% in the US and 37% in Spain.

What is the present situation wrt philanthropy in India?

The India Philanthropy Report 2021 by Bain and Dasra notes philanthropic funding in 2020 rose 23% to Rs 64,000 crore.

– Foreign contributions, CSR and retail donations have stagnated at 80% of inflows. Family philanthropy accounted for most of this increase.

An Edelweiss study predicts 4 lakh Indian HNI families by 2025 with assets totalling Rs 360 lakh Crore, against 1.5 lakh families with Rs 140 lakh crore assets in 2018. This reveals high growth potential for family philanthropy.

The tech sector accounted for 26% of family philanthropy, despite boasting only 9% of HNI families.

Why funding by domestic HNIs is essential?

Domestic HNIs funding local causes could help offset the pressure applied by FCRA restrictions to global non-profit contributions to India and the pandemic’s severe blow to those in lower income brackets.

India’s public spending in areas like science and technology, health and education is abysmally low in proportion to GDP compared to other countries. Hence, philanthropy can help bridge this gap.

Engel’s law and Pandemic’s impact on our food expenditure

News

The recent budget has seen a reduction in the amount allocated for food subsidy, mid-day meals and for the Mahatma Gandhi National Rural Employment Guarantee Act. These steps may worsen the situation of the poor who have been struggling to even cope with the disruption to their food budget as shown by a recent analysis.

What is this study?

An analysis was done on the basis of Centre for Monitoring Indian Economy monthly data. Experts studied the data based on Engel’s law and analysed pandemic’s impact on the food budget of the households.

What is Engel’s law?

The poorer a family, the greater the proportion of its total expenditure that must be devoted to the provision of food.

What were the causes for Nutritional disruptions in the pandemic?

Nutritional disruptions arose from both the production side (food production, processing and distribution) and demand side (economic and physical access to food) during the pandemic.

Food supply chains were interrupted by restrictions on the movement of food and closure of wholesale and retail outlets. The hikes in food prices, along with unemployment and loss of incomes led to a decline in overall demand.

How these disruptions affected food expenditure of households?

Pandemic-induced lockdowns resulted in a sharp increase in the share of food in total expenditure across rural and urban India.

The share of food in total expenditure in rural India ranged from 45% to 50%, and, in urban India, from 41% to 45% before the Pandemic.

However, the corresponding shares rose to 61% in rural India and 59% in urban India during the first wave and even reached higher levels in the second wave.

In rural areas the before(pandemic)-versus-after gaps in food-budget was widest for the poorest. That the poorest in rural areas were worst affected by the lockdown.

Although overall Engel curve shifted downward once lockdown restrictions were lifted but there was no reversal to pre-pandemic levels. This shows that the income levels have not fully recovered and changes in relative food prices induced substitutions within the household consumption basket.

This means that households may have been prompted by the massive price and income shocks due to the pandemic to shift from good-quality nutritious food to inferior food.

Prelims Oriented Articles (Factly)

Anti-mob lynching bills passed by 4 Assemblies at various levels of non-implementation

What is the news?

The bills passed against mob lynching in the past four years by four states have not been implemented with the Union government taking a view that lynching is not defined as a crime under the Indian Penal Code (IPC).

What is Mob Lynching?

Mob lynching is a term used to describe the acts of targeted violence by a large group of people.The violence is tantamount to offences against human body or property- both public as well as private.

Is Mob Lynching defined under Indian Penal Code (IPC)?

In 2019, Union Home Ministry informed Parliament that there was “no separate” definition for lynching under the IPC. Lynching incidents could be dealt with  under Sections 300 and 302 of the IPC pertaining to murder.

Note: In 2017, the National Crime Records Bureau (NCRB) collected data on mob lynching, hate crimes and cow vigilantism, but it was not published and discontinued as these crimes are not defined and the data were found to be unreliable.

Which States have passed Anti Mob Lynching Bills?

Rajasthan, Jharkhand, Manipur and West Bengal has passed Anti Mob Lynching Bills.

Why are the Bills pending?

Most bills are waiting for the President’s nod as some punishments laid down in the Bills were higher than those in the Central statutes.

The President has to go with the advice given by the Council of Ministers, in the case of such legislation, represented by the Ministry of Home Affairs (MHA) .

The MHA examines the State legislations on three grounds: repugnancy with Central laws, deviation from national or central policy and legal and constitutional validity.

What are Supreme Court views on Mob Lynching?

In 2018, the Supreme Court asked Parliament to make lynching a separate offence. 

But the Home Ministry informed Parliament that the government has decided to overhaul the IPC framed in 1860 and the Code of Criminal Procedure (CrPC) and mob-lynching would also be examined by the committee. 

The suggestions received by the Committee for Reforms in Criminal Laws would be examined by the Ministry before the changes are adopted.

Source: This post is based on the article “Anti-mob lynching bills passed by 4 Assemblies at various levels of non-implementation” published in The Hindu on 16^th Feb 2022.      

Phensedyl smuggling a challenge for BSF

What is the news?

Phensedyl (a cough syrup) Smuggling remains a challenge for the Border Security Force (BSF) along the India – Bangladesh border.

What is Phensedyl?

Phensedyl is a codeine-based cough syrup.It has been banned in Bangladesh as it was used as an intoxicant in a country that follows liquor prohibition.

It was consumed by youngsters in large quantities against the recommended small dose to get high.

Due to this, the Phensedyl is being smuggled from India. One bottle of Phensedyl costs about Rs. 200 in India and the moment it crosses the border, the price goes up to thousands. 

What is being done to stop Phensedyl smuggling?

BSF is developing a network of ascertaining information on smuggling and attempts are being made so that nothing can be hidden from the eyes of the troops.

Source: This post is based on the article “Phensedyl smuggling a challenge for BSF” published in The Hindu on 16th Feb 2022. 

Explained: The Ravidassia identity

What is the news?

The birth anniversary of Ravidas, a major religious event for lakhs of devotees will be celebrated on February 16, 2022.

Who was Guru Ravidas?

Guru Ravidas was a mystic poet-saint of the Bhakti Movement from the 15th and 16th centuries. He founded the Ravidassia religion. 

He is believed to be a disciple of the bhakti saint-poet Ramananda and contemporary to the bhakti saint-poet Kabir.

He is also considered as a spiritual Guru of the Meera Bai.

His idea of “Begampura” was considered as his moral and intellectual achievement.Begampura was a city conceived by him. In that city, there will be no sorrow, no caste and class.

Note: Train no. 12238, Jammu Tawi-Varanasi Begampura Express takes its name from the ‘Begampura’. 

The Panch Vani text of the Dadupanthi tradition within Hinduism also includes numerous poems of Guru Ravidas.

Click Here to read more about Guru Ravidas

Source: This post is based on the article “Explained: The Ravidassia identity” published in Indian Express on 16th Feb 2022.      

PM Gati Shakti National Master Plan(NMP)-22 Greenfield Expressways, 23 key infrastructure projects among others

What is the news?

The Ministry of Road Transport and Highways (MoRTH) has made significant progress under the PM Gati Shakti National Master Plan (NMP).

What is PM Gati Shakti?

PM Gati Shakti was launched in 2021.

It is a digital platform that brings together 16 Ministries, including railways and roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects.

Click Here to read more

What are the projects under implementation under PM Gati Shakti?

The Ministry of Road Transport plans to develop 22 Greenfield Expressways, 23 infrastructure projects & other highway projects and 35 Multi-Modal Logistics Parks (MMLPs) as part of the Bharatmala Pariyojana.

Some of the major Expressways and Corridors which are under construction stage are Delhi – Mumbai Expressway, Ahmedabad — Dholera Expressway, Delhi-Amritsar-Katra Expressway, Bengaluru-Chennai Expressway among others.

Some of the major key infrastructure projects which are under construction stage include construction of Zojila Tunnel (Ladakh), roads to connect Krishnapatnam Port (Andhra Pradesh), a major bridge over Middle Strait Creek (Andaman & Nicobar Islands), Lalpul-Manmao changing road (Arunachal Pradesh) among others.

Further, several MMLP projects identified for development under the Bharatmala Pariyojana Phase I are: MMLP at Jogighopa(Assam), MMLP Nagpur, MMLP Chennai and MMLP Bengaluru.

Source: This post is based on the article “PM Gati Shakti National Master Plan(NMP)-22 Greenfield Express ways, 23 key infrastructure projects among others” published in Indian Express on 16th Feb 2022.

Mapping of 6 lakh villages under the SVAMITVA scheme and pan-India 3D Maps for 100 cities undertaken, which will be a game changer for India

What is the news?

On the ​​1st Anniversary of the Release of Geospatial Data, the Union Minister has said that the SVAMITVA scheme with the help of drones will survey all the over 6 lakh Indian villages.At the same time, Pan India 3D Maps Program will prepare 3D Maps for 100 Indian cities.

What is the SWAMITVA Scheme?

SWAMITVA is a Central Sector Scheme of the Ministry of Panchayati Raj.

Aim: To provide clear ownership of property in rural inhabited (Abadi) areas by mapping of land parcels using drone technology and providing ‘Record of Rights’ to village household owners with issuance of legal ownership cards (Property cards/Title deeds) to the property owners. 

Ministries Involved: The Scheme is implemented with the collaborative efforts of the Ministry of Panchayati Raj, State Revenue Department, State Panchayati Raj Department and Survey of India.

What are the updated guidelines on SWAMITVA Scheme?

The updated guidelines help private companies to prepare a variety of maps without needing approvals from a host of ministries.

They aim to make it easier to use drones and develop applications via location mapping.

What is a Pan India 3D Maps Program?

It was launched by private technology firm Genesys International.

Aim: To create pan-India 3D maps for 100 Indian cities.These 3D maps would depict reality as it is.

The maps will be available in a freemium model which will be partly free and partly paid.

Significance: This would benefit a huge number of start-ups, private enterprises as the 3D maps will unlock the potential of augmented reality and new areas of growth.

Source: This post is based on the article “Mapping of 6 lakh villages under the SVAMITVA scheme and pan-India 3D Maps for 100 cities undertaken, which will be a game changer for India” published in PIB on 15th Feb 2022.

Novel tools for deciphering mechanisms associated with learning and memory developed by Indian Scientists

What is the news?

Indian Scientists have developed a first-of-its-kind tool for understanding the process of long-term memory consolidation in the brain by capturing the neural signals from the rodent brain.

What is the study conducted by scientists?

Learning and memory are the fundamental processes of the brain. Learning is attributed to the acquisition of new data and memory. Retention of the acquired data leads to long-term memory (LTM) formation.

This study is being conducted to understand long-term memory (LTM) formation.

How is the study being conducted?

This study is being conducted under the “Promotion of University Research and Scientific Excellence (PURSE)” program.

It uses the behavioural tagging model to understand the LTM consolidation through behavioural analysis. It has also used the In Vivo Electrophysiology technique to explore the latent features of memory consolidation

The findings of this study could help in finding a direct link between the memory consolidation pathway and memory impairment mechanism in a diseased state.

What is the PURSE Program?

PURSE is one of the flagship Infrastructure programs of the Department of Science and Technology, which commenced in the year 2009 exclusively for the University sector. 

The main objective of the scheme is to strengthen the research capacity of performing Indian Universities and provide support for nurturing the research ecosystem and strengthening the R&D base of the Universities in the country.

Source: This post is based on the article “Novel tools for deciphering mechanisms associated with learning and memory developed by Indian Scientists” published in PIB on 16th Feb 2022. 

Social Justice and Empowerment Ministry to launch a Scheme for Economic Empowerment of DNTs (SEED)

What is the news?

The Minister of Social Justice and Empowerment will launch the Scheme for Economic Empowerment of DNTs (SEED).

Background

De-notified, Nomadic and Semi-Nomadic Tribes are the most neglected, marginalised and economically and socially deprived communities.

In 2014, the Ministry of Social Justice & Empowerment constituted a National Commission for Denotified, Nomadic and Semi Nomadic Tribes for a period of three years. This commission gave recommendations and prepared draft lists of DNT/NT/SNT Communities. 

Based on the Commission’s recommendations, the Development and Welfare Board for Denotified, Nomadic and Semi-Nomadic Communities (DWBDNCs) was setup in 2019. The Board has been mandated to formulate and implement welfare and development programmes for these communities.

What is the Scheme for Economic Empowerment of DNTs (SEED)?

Aim: To economically empower De-notified, Nomadic and Semi Nomadic Communities. 

Duration of the Scheme: The scheme will be for a period of 5 years starting Financial Year 2021-22 to 2025-26.

Eligibility: The scheme has been formulated for families having income from all sources of Rs.2.50 lakh or less per annum and not availing any such benefits from similar Scheme of Centre Government or the State Government.

Components of the Scheme:

– To provide coaching of good quality for DNT/NT/SNT candidates to enable them to appear in competitive examinations.

– To provide health insurance to DNT/NT/SNT Communities.

– To facilitate livelihoods initiative at community level to build and strengthen small clusters of DNT/NT/SNT Communities institutions.

– To provide financial assistance for construction of houses to members of the DNT/NT/SNT Communities.

Implementation: The scheme will be implemented through a portal that has been developed by the Department of Social Justice & Empowerment. Portal comprises of two modules:

– One for registration of applicants with details of his family, income, Aadhaar & bank details, occupation, caste certificate, etc.Upon completing the registration, the applicant will be assigned a unique ID(UID) number.

– Second part consists of a scheme component for which the applicant wants to seek benefit with his UID.

Note: The other implementing agencies of the scheme are Ministry of Rural Development, National Rural Livelihood Mission (NRLM) and National Health Authority (NHA).

Source: This post is based on the article “Social Justice and Empowerment Ministry to launch a Scheme for Economic Empowerment of DNTs (SEED)” published in PIB on 16th Feb 2022. 

Cabinet clears setting up of G20 Secretariat

What is the news?

Cabinet has approved setting up of a G20 Secretariat to put in place arrangements required for India’s presidency of the prestigious grouping.

Note: India will hold the Presidency of the G20 from December 1, 2022 to November 30, 2023.

Why is the G20 Secretariat being established?

As per practice, a G20 Secretariat is being established to handle work relating to various aspects of India’s G20 Presidency.

The secretariat will be handled by officers and staff from the Ministry of External Affairs, Ministry of Finance and other relevant ministries.

The Secretariat will be functional till February 2024.

It will be guided by an Apex Committee headed by the Prime Minister and comprising the finance minister, home minister, external affairs minister, and G20 Sherpa (Commerce & Industry Minister).

Further, a Coordination Committee will also be set up to oversee all G20 preparations and report to the Apex Committee. 

Source: This post is based on the article “Cabinet clears setting up of G20 Secretariat” published in Indian Express on 16th Feb 2022

Everyday Economics: What is an IPO?

What is the news?

The initial public offering(IPO) of Life Insurance Corp of India (LIC) is likely to run from March 10 to 14,2022.

What is an IPO?

An IPO or initial public offering is the process by which a privately held company, or a company owned by the government such as LIC, raises funds by offering shares to the public or to new investors.Following the IPO, the company is listed on the stock exchange.

How can a company file an IPO?

While coming with an IPO, the company has to file its offer document with SEBI.The offer document contains all relevant information about the company, its promoters, its projects, financial details among others.

Which companies can come out with an IPO?

In order to protect investors, Sebi has laid down rules such as: a) company must have net tangible assets of at least Rs 3 crore b) net worth of Rs 1 crore in each of the preceding three full years and c) it must have a minimum average pre-tax profit of Rs 15 crore in at least three of the immediately preceding five years.

The per-share price of the public issue is fixed by the issuer in consultation with the merchant banker. 

Who can invest in an IPO?

There are various categories of investors who can invest in an IPO:

– Qualified institutional buyers (QIBs) is a category of investors that includes foreign portfolio investors (FPIs), mutual funds, commercial banks, insurance companies, pension funds, etc.

– All individuals who invest up to Rs 2 lakh in an issue are classified as retail investors. 

– Retail investors investing above Rs 2 lakh are classified as high net worth individuals.

Note: You have to be 18 years of age to become an investor. A brokerage account is needed to invest, and you have to be at least 18 years old to have one.

Where do the proceeds of the IPO go?

If the issue raises fresh capital, the proceeds of the IPO go to the company, and can be utilized for future growth, expansion, debt reduction, etc. 

If the issue involves an offer for sale by promoters or existing investors, then the money goes to them and not to the company. 

What are the advantages of listing a company?

Listing on the stock exchange calls for additional disclosures by companies on a regular basis, leading thereby to more stringent compliance requirements. But it may also help a company raise capital, and diversify and broaden its shareholder base.

Source: This post is based on the article “Everyday Economics: What is an IPO?” published in Indian Express on 16th Feb 2022.