Daily Quiz: UPSC Prelims Marathon- August 15

A shell company is a non-operational company that is used as a vehicle for various financial manoeuvres, or is kept dormant for future use in some other capacity. Interestingly, the term “shell company” is not defined under the Companies Act, 2013.

STATEMENT 2 IS incorrect:

A shell company is per se not illegal — as long as it is not used for an illegal act, such as manipulation of share prices, evading taxes, or financial fraud.

Explanation:

A capital account shows the net change in physical or financial asset ownership for a nation and, together with the current account, constitutes a nation’s balance of payments. The capital account includes foreign direct investment (FDI), portfolio and other investments, plus changes in the reserve account. A capital account may also refer to an account showing the net worth of a business at a specific point in time.

India is set to join Global Foreign Exchange Committee (GFXC) which is a newly-constituted forum of central bankers and experts working towards promotion of a robust and transparent foreign exchange (Forex) market.

The committee has been set up under Bank for International Settlements (BIS)

About Global Foreign Exchange Committee (GFXC)

The GFXC was established in London in May 2017.

The newly expanded and formalized GFXC, replaces a similar but more informal organization of eight FXCs from Australia, Euro area, Canada, Hong Kong, Japan, Singapore, UK and US and now it will also include structures in China, India, Brazil, Korea, Mexico, South Africa, Sweden and Switzerland.

The objectives GFXC:

(i) Promote collaboration and communication among the local FXCs and non-GFXC jurisdictions with significant FX markets

(ii) Exchange views on trends and developments in global FX markets, including on the structure and functioning of those markets, drawing on information gathered at the various FXCs;

(iii) Promote, maintain and update on a regular basis the FX Global Code (the Code) and consider good practices regarding effective mechanisms to support adherence.

EXPLANATION:

• Market regulator Securities and Exchange Board of India (SEBI) has set up a committee on ‘fair market conduct’. It will be headed former law secretary T K Vishwanathan.
• The committee will suggest measures for improving surveillance of the markets and strengthen rules for algorithm trades, among other norms.
• It would be responsible for recommending steps to align insider trading regulations with Companies Act provisions.
• The committee will suggest short term and medium term measures for improved surveillance of the markets as well as issues of high frequency trades, harnessing of technology and analytics in surveillance,”
• Besides, the committee will suggest evidentiary issues in anti-fraud enforcement

Explanation:

The economic survey has used the phrase “Helicopter Hoover” in the wake of demonetization. This term is, derived from the concept of Helicopter money which denotes printing large sums of money and distributing it to the public to increase money supply and stimulate the economy in deflationary periods. The survey has called demonetization as “Reverse Helicopter”

Statement 1 is incorrect because the scheme will be launched by Ministry of Rural Development
Important Learning:
 The main objectives of AGEY are to provide an alternative source of livelihoods to members of Self Help Groups (SHGs) under DAY-NRLM by facilitating them to operate public transport services in backward rural areas.
 This will provide safe, affordable and community monitored rural transport services like e-rickshaws, 3 and 4 wheeler motorised transport vehicles to connect remote villages with key services and amenities including access to markets, education and health for the overall economic development of the area.