Daily Quiz: UPSC Prelims Marathon – October 9, 2018

Recently, China has successfully tested its first photovoltaic (solar) highway based on home-grown technology in country’s eastern Shandong province. The road is constructed using solar panels which have a thin sheet of clear concrete on top of them, protecting the surface. The panels were built to transfer energy to electric vehicles passing on top of them. China has become the second country to construct a photovoltaic highway. France was introduced the world’s first photovoltaic road fitted with solar panels in late 2016.

As per Section 1(2) of FCRA, 2010, the provisions of the act shall apply to:

1. Whole of India
2. Citizens of India (living) outside India; and
3. Associate Branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India.

Both the statements are correct. With a view to improve the Governance of Public Sector Banks (PSBs), the Government had decided to set up Banks Board Bureau as an autonomous body consisting of eminent professionals and officials from public sector banks (PSBs). It has replaced the Appointments Board of Government. The bureau was announced by the Union Government in August 2015 as part of seven point Indradhanush Scheme to revamp the PSBs.

Functions:

Give advice to PSBs in developing differentiated strategies for raising funds through innovative financial methods and instruments and to deal with issues of stressed assets. Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs. Give advice to PSBs in developing differentiated strategies for raising funds through innovative financial methods and instruments and to deal with issues of stressed assets. Guide banks on mergers and consolidations and also ways to address the bad loans problem among other issues.

All the statements are correct. The objectives of disinvestment are:

1. Improve corporate governance.
2. Realize the productive potential of CPSEs through improved efficiency and profitability.
3. CPSEs’ wealth should rest in the hands of the people: Public Sector Undertakings are the wealth of the Nation and to ensure this wealth rests in the hands of the people, promote public ownership of CPSEs
4. Raise resources for the Government.

Union Government has renamed Department of Disinvestment as Department of Investment and Public Asset Management (DIPAM). The renaming decision aims at proper management of Central government’s investments in equity and also its disinvestment proceeds in central public sector undertakings (PSUs).

About DIPAM:

DIPAM will work under Union Finance Ministry. It has been mandated to advise the Union Government in the matters of financial restructuring of PSUs and also for attracting investment through capital markets. It will deal with all matters relating to sale of Union Government’s equity through private placement or offer for sale or any other mode in the erstwhile Central PSUs. Henceforth all other post disinvestment matters will continue to be handled by the Union Finance Ministry or concerned department in consultation with DIPAM on necessity.

Bonds and Commercial paper are instruments of the secondary capital market. Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange. Majority of the trading is done in the secondary market. Secondary market comprises of equity markets and the debt markets. Following are the main financial products/instruments dealt in the secondary market:

• Shares
• Government securities
• Debentures
• Bond

Initial Public Offering (IPO) is an offering of the primary market where a private company decides to sell stocks to the public for the first time.

Index of Industrial Production (IIP) is released by the Central Statistics Office (CSO) of the Ministry of Statistics and Programme Implementation. IIP is published monthly, six weeks after the reference month ends.