Month: July 2023

Categories
Economics

Offer-for-Sale (OFS)

Institutional investors reacted positively to the government’s offer-for-sale (OFS) of a stake in Rail Vikas Nigam Ltd (RVNL).

Concerning the Offer for Sale (OFS)

  • OFS is a share sale technique adopted in 2012 by India’s securities market regulator SEBI.
  • The major goal was to make it easier for promoters of publicly traded firms to reduce their interests and meet the minimum public shareholding requirements within the time frame specified.
  • As a means of complying with SEBI’s rule, this approach gained favour among both state-run and private listed enterprises.
  • Following that, the government accepted OFS to divest its stake in public-sector enterprises.

Key Features of Offer for Sale:

  • Shareholding Dilution: In an OFS, the promoters of a company reduce their shareholding by selling existing shares through an exchange platform to retail investors, companies, Foreign Institutional Investors (FIIs), and Qualified Institutional Buyers (QIBs).
  • Fresh Issuance Restriction: Unlike a follow-on public offering (FPO), in which corporations can raise capital by issuing new shares or promoters can sell their existing ownership (or both), an OFS is only used to sell existing shares.
  • Criteria for Eligibility: An OFS can only be conducted by promoters or shareholders who own more than 10% of a company’s share capital.
  • Only the top 200 companies are eligible: The OFS mechanism is open to the top 200 corporations in terms of market capitalization.
  • Institutional Quota: A minimum of 25% of the shares available in an OFS are designated for mutual funds (MFs) and insurance firms. Furthermore, no one bidder, with the exception of MFs and insurance companies, can be given more than 25% of the offering size.
  • Participation of Retail Investors: A minimum of 10% of the offer size is reserved for retail investors to encourage their participation in the share sale.
  • Discount Provision: Sellers may offer a discount to retail investors on either the bid or the final allotment price.
  • Timely Notification: At least two banking days before the event, the company must notify the stock exchanges of its plan to execute an OFS.
Source: https://www.hdfcsec.com/offer-for-sale-ofs#:~:text=Offer%20for%20Sale%20%2D%20OFS,bidding%20platform%20for%20the%20Exchange.
Categories
Uncategorized

Regime of Free Movement along the India-Myanmar Border

  • The ongoing ethnic conflict in Manipur between Meiteis and Kukis is worsened by the question of illegal tribal Kuki-Chin migration into India from Myanmar.
  • In the midst of this tense and delicate debate, doubts have been raised about the Free Movement Regime (FMR), which permits tribes along the Indo-Myanmar Border (IMB) to travel without a visa into each other’s territory.

Understanding the Regime of Free Movement

  • The FMR was implemented in 2018 as part of the Act East programme to strengthen Indo-Myanmar connections.
  • It permits tribes living along the IMB to go up to 16 km into the neighbouring country without a visa.
  • Ethnic and Cultural Ties: The border between India and Myanmar was drawn without taking into account the views of the people who live there, dividing individuals of the same ethnicity and culture into two nations.
  • The FMR aims to facilitate people-to-people contact, local trade, and business, all of which are necessary for livelihoods and sustenance.
  • Discontinuation: As the Myanmar issue worsened, India suspended the FMR in September 2022.

FMR-created challenges

  • Unintentional Aid to Illegal Immigration: Because the Indo-Myanmar border is porous and unfenced, there are concerns about illegal immigration, drug trafficking, and gun smuggling.
  • Refugee flood: The military coup in Myanmar sparked persecution of the Kuki-Chin peoples, resulting in a large influx of Myanmarese tribals seeking refuge in Manipur and Mizoram. Despite concerns from the Union Ministry of Home Affairs, Mizoram established camps for approximately 40,000 refugees.
  • Tensions and deforestation: The Manipur government accused village leaders of illegally placing Myanmar migrants in new villages, resulting in deforestation.
  • Eviction resistance: An eviction drive sparked violence between Kukis and the authorities.

Potential Solutions

  • Better FMR Regulation: Experts concur that the FMR requires improved regulation to overcome the issues posed by unlawful activities and cross-border movements.
  • Middle route: A middle route could be pursued to accommodate Myanmar’s shifting sociopolitical and economic realities, as well as the region’s dynamic demographic composition.
  • Addressing the Issue: India must find a way to fight illicit operations and border crimes while also taking into account the concerns and requirements of the local population.
Source: https://indianexpress.com/article/explained/free-movement-regime-india-myanmar-border-manipur-migration-explained-8865348/#:~:text=The%20border%20between%20India%20and,other%20country%2C%20without%20a%20visa.
Categories
Polity

Concerns about Lynchings and Mob Violence at the Supreme Court

  • The Supreme Court has ordered the Centre and six states to respond to a petition concerns lynchings and mob violence.
  • It emphasised the importance of holding the government machinery accountable for protecting the lives of victims, including members of the minority group.
  • Currently, the National Crime Records Bureau (NCRB) does not have separate data on religious minorities and mob lynching.

Mob Lynching through Judiciary’s Lens

  • The Supreme Court issued a warning in the Tehseen Poonawala Case (2018) against the rising tide of frenzied mobs fueled by fake news, feigned morality, and misleading claims. The court considered these occurrences as “creeping threats” that needed to be addressed immediately.
  • Demand for Punishment and Special Law: The 2018 judgement declared mobocracy abhorrent and urged for new legislation and harsh fines to adequately address the issue.

What is Mob Lynching?

  • Mob lynching is a terrible form of extrajudicial killing committed by a group to punish an alleged transgressor or to terrify a community.
  • The lack of a separate definition for lynching in the Indian Penal Code (IPC) and insufficient provisions to deal with such crimes have prompted worries about the country’s increasing mob violence.

Filling the Legal Gap with an Anti-Lynching Law:

  • An anti-lynching law would address the weaknesses in current criminal jurisprudence by creating a specialised legal framework to deal with such horrific acts. The IPC already provides provisions for unlawful assembly, rioting, and murder, however there is no express legislation against mob lynching.
  • Limiting Lawlessness: An anti-lynching law would hold individuals involved in lynching instances accountable, offering a strong deterrent to such acts of violence.
  • Addressing the Rise in Lynching Incidents: Mob lynching cases have escalated over the years, needing a concerted and comprehensive judicial approach to address this scourge.

Factors Contributing to the Increase in Lynchings Impunity:

  • Lynch mobs frequently act confidently, assuming they will escape punishment. The state’s lack of decisive response has contributed to their arrogance.
  • Communalism: Political reasons influence the incumbent government’s response to cow-related lynchings, affecting the crackdown on such attacks.
  • Fake News: The rapid dissemination of misinformation via social media platforms drives spontaneous outbursts of hostility and contributes to mob violence.
  • Unemployment and alienation: Modernity has weakened associational life and a sense of fraternity, resulting in emotions of alienation. High unemployment rates also detach millions of young people, making them susceptible to manipulation.

Impact of Lynching

  • Lynching has a negative impact on the state since it violates fundamental rights entrenched in the constitution, resulting in a law and order problem.
  • Economy: International organisations have expressed cautions against mob lynching, which has harmed foreign and local investments as well as sovereign ratings. It also impedes internal movement and places additional strain on the state budget to deal with such situations.
  • Lynchings exacerbate caste, class, and communal tensions by instilling fear of radicalization, disrupting communal harmony, and promoting intolerance.
Source: https://www.thehindu.com/news/national/supreme-court-seeks-centre-states-response-on-nfiw-plea-sounding-the-alarm-on-lynchings-mob-fury/article67131163.ece
Categories
Art & Culture Culture of India

Muharram and Ashura

  • On the 8th of Muharram, the Jammu and Kashmir administration approved a Muharram parade in Srinagar for the first time in over three decades, attracting thousands of Shia mourners.
  • The ruling has received widespread acclaim.

What exactly is Muharram?

  • Muharram is the first month of the Islamic lunar calendar and has religious and historical significance for Muslims all over the world.
  • The word “Muharram” means “forbidden” in Arabic, indicating the month’s hallowed aspect.
  • It is one of Islam’s four sacred months, during which combat and disputes are usually prohibited.
  • It is observed by both Sunni and Shia Muslims (as well as Hindus), albeit each group has a different historical and religious significance.

Celebration of Ashura

  • Ashura, the tenth day of Muharram, is the most important day of the month.
  • Shia Muslims observe the martyrdom of Prophet Mohammed’s grandson, Imam Hussain, in the Battle of Karbala in 680 AD. During this time, the prophet’s son-in-law, Ali, and Ali’s elder son, Hassan, are also recalled as having suffered and perished.  Shia Muslims perform distinctive mourning rites on Ashura, including as self-flagellation, chest-beating, and, in certain cases, forehead cutting with sharpened knives and chains with connected blades. The Shia Community also holds a ‘Taziya,’ a tableaux parade.
  • Sunni Muslims celebrate Ashura as the day when Prophet Moses and the Children of Israel were delivered from the oppression of Pharaoh by crossing the Red Sea.
  • Hindus observe Muharram by getting themselves painted in tiger stripes, visiting families, and performing “huli kunita” as part of their “harake” (promise).

Kashmir Celebrates Ashura

  • Dogra Rulers’ Prohibition: Muharram processions were either outlawed or permitted only at night under the reign of the Dogra rulers, citing tensions between the Shia and Sunni people.
  • Despite the Dogra mandate for early processions, mourners marched during the day in the 1920s, with both Shias and Sunnis joining the procession. This became connected with the Kashmiri Muslim liberation fight.
  • Selective Permits: Later, specific people and families were granted permits to participate in processions, but the major Muharram procession was banned when militancy broke out.

The Importance of Allowing Processions

  • After a long restriction, the approval for the Muharram parade in Srinagar is an important milestone, indicating progress towards religious freedom in the region.
  • It emphasises the importance of respecting people’s religious beliefs and upholding the values of inclusivity and unity among the valley’s various groups.
Source: https://www.indiatimes.com/events/muharram-ashura-2023-date-history-observation-significance-of-fasting-on-ashura-islamic-festival-610422.html
Categories
Environment & Biodiversity Governance

The Biodiversity Act and What modifications to the law has the Lok Sabha approved?

On July 25, the Lok Sabha passed a Bill amending some provisions of the Biological Diversity Act of 2002.

The Big Idea

The bill’s recent adoption by the Lok Sabha is an important step towards preserving India’s biological variety and fostering sustainable utilisation. The measure is intended to resolve issues voiced by central ministries, state governments, researchers, industry, and other stakeholders about the implementation of the Biological Diversity Act of 2002.

What is the Biodiversity Law?

  • The Biological Diversity Act of 2002, often known as the Biodiversity Law, is a key piece of law in India.
  • Its primary goal is to protect the country’s biological diversity, which includes animals, plants, microbes, gene pools, and the habitats in which they live.
  • The law was enacted in response to the worldwide need to conserve and preserve biological resources that were under threat from human activity.

Exemption for Indian Systems of Medicine:

  • Certain consumers of biological resources, such as practitioners of Indian systems of medicine, are exempt from making contributions to the Access and Benefit Sharing (ABS) mechanism.
  • Treatment of Indian enterprises with Foreign Equity: Companies incorporated in India and controlled by Indians are treated as Indian enterprises, even if they have foreign equity or partnership, and their operations involving biological resources are subject to fewer limitations.
  • Streamlining the Approval Process: Provisions have been made to accelerate approval for biological research and the submission of patent applications.
  • Penalty Provisions Rationalisation: Penalties for misbehaviour by user agencies have been rationalised.

The Importance of the Biodiversity Law

  • Biological Diversity Conservation: The Biodiversity Law is critical for preserving India’s unique range of animals, plants, microbes, and ecosystems.
  • Addressing Global Issues: The legislation is a global response to the need to protect and conserve biological resources that are under threat from human activity. It aligns India with global efforts to protect biodiversity.
  • CBD Commitment Implementation: In 1994, India ratified the Convention on Biological Diversity (CBD). The Biodiversity Law contributes to India’s fulfilment of its obligations under this international framework agreement by promoting biodiversity conservation and sustainable usage.
  • Sustainable Resource Utilisation: The law emphasises the sustainable use of biological resources, ensuring that they are not depleted or harmful to the environment. This strategy encourages careful resource management.
  • Traditional Medicine Supported: The law recognises the importance of traditional medicine systems like as Ayurveda, Unani, and Siddha, which rely on medicinal plants and biological resources. It advocates for the protection of these resources and traditional knowledge.
  • Access and Benefit Sharing (ABS) system: In accordance with the Nagoya Protocol, the Biodiversity Law includes an Access and Benefit Sharing system. It guarantees that the advantages derived from the use of genetic resources are shared equitably with local populations.

Reasons for the necessity for changes

  • Responding to Stakeholder Concerns: Various parties, including traditional medicine practitioners, the seed sector, pharmaceutical corporations, and the research community, raised reservations about specific aspects of the original statute over the years.
  • Supporting Traditional Systems of Medicine: One of the primary goals of the changes was to promote Indian systems of medicine such as Ayurveda. The modifications sought to offer exemptions or favourable conditions for traditional medicine practitioners to gain access to and utilise these resources.
  • Attracting Foreign Investment: By simplifying and streamlining processes, the government hoped to make it simpler for foreign organisations to do biodiversity research and business in India.
  • Promoting Research and Innovation: The modifications seek to speed up the approval process for biological resource research and simplify the submission of patent applications.
  • Penalty Provisions Rationalisation: The revisions most likely involved rationalising the penalty provisions for misbehaviour by user agencies. This was done to verify that the penalties imposed for law violations were fair and adequate.
Source: https://indianexpress.com/article/explained/explained-law/biodiversity-act-amendment-lok-sabha-8863004/#:~:text=The%20Biological%20Diversity%20(Amendment)%20Bill%20seeks%20to%20address%20concerns%20of,to%20ensure%20its%20sustainable%20use.
Categories
Economics

Maitree Super Thermal Power Project

  • Bharat Heavy Electricals (BHEL), a state-owned engineering corporation, has reached a critical milestone in Bangladesh with the Maitree Super Thermal Power Project.
  • The 660-MW Unit-2 of the 1,320-MW Maitree Super Thermal Power Project (STPP) in Bangladesh has been successfully synchronised with the electrical system.

Maitree Super Thermal Power Project

  • Location: The Maitree STPP is a 1,320-MW power plant situated at Rampal, Mongla, Bagerhat, Bangladesh.
  • BHEL is in charge of constructing the power plant, which is a 50:50 joint venture between the Bangladesh Power Development Board (BPDB) and NTPC Ltd.
  • Priority Infrastructure Development: The project represents successful collaboration between India and Bangladesh and is a priority infrastructure development programme for Bangladesh.
  • The project’s major purpose is to develop a dependable and cost-effective base-load power generation infrastructure in Bangladesh.

Technological Prowess and Global Leadership at BHEL:

  • The flawless synchronisation of the 660-MW Unit-2 demonstrates BHEL’s power industry knowledge and technological prowess.
  • This achievement strengthens BHEL’s position as a global leader in providing dependable and sustainable energy solutions.
Source: https://www.bifpcl.com/
Categories
Economics

RECEIC stands for Resource Efficiency Circular Economy Industry Coalition

The Resource Efficiency Circular Economy Industry Coalition (RECEIC) was formed with the commitment of 39 global corporations to the principles of resource efficiency and circular economy.

What is RECEIC?

  • The RECEIC is an industry-led project with a global focus on improving resource efficiency and circular economy practises that was conceived during India’s G20 presidency.
  • Its goals are to solve waste-related environmental issues such as plastics, microplastics, e-waste, and chemical waste.
  • RECEIC’s launch was attended by 39 international firms from industries such as steel, FMCG, and electronics.
  • The coalition will be driven by industry, with the government providing support.
  • The coalition’s primary goal is to address environmental concerns caused by various types of trash using resource efficiency and circular economy principles.
  • Ministers from Mauritius, Denmark, Italy, Canada, the United Arab Emirates, France, and the European Union were present.

India’s measures in this regard

  • India generated around 41 lakh tonnes of plastic garbage in 2021-22, with 30 lakh tonnes allotted to registered recyclers and plastic waste processing companies.
  • The Plastic trash Management (Amendment) Rules, 2022, created rules for Extended Producer Responsibility (EPR) to properly manage plastic trash.
  • Plastic waste processors created 2.6 million tonnes of EPR certificates, of which 1.51 million tonnes were purchased for 2022-23 commitments.
Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1943135#:~:text=As%20a%20collaborative%20platform%2C%20RECEIC,Cooperation%20and%20Finance%20for%20scale.
Categories
Governance

UNESCO supports the prohibition of smartphones in schools

  • The UNESCO Global Education Monitoring (GEM) Report 2023 has been published.
  • The paper cautioned against excessive screen time’s harmful effects on children’s well-being and academic achievement.
What is UNESCO?
Full NameUnited Nations Educational, Scientific and Cultural Organization
EstablishedNovember 16, 1945
HeadquartersParis, France
Director-GeneralAudrey Azoulay
PurposeTo encourage worldwide collaboration in education, research, culture, and communication in order to promote peace and security.
Functions– promoting universal education – supporting scientific research – preserving cultural heritage – fostering free expression – promoting media development
MembershipOver 190 member states
World Heritage SitesOver 1,100 designated sites worldwide
LanguagesOfficial languages: Arabic, Chinese, English, French, Russian, Spanish Working languages: English, French

About Global Education Monitoring Report 2023

  • The GEM Report, which was established in 2002, is an editorially independent report maintained and published by UNESCO.
  • At the 2015 World Education Forum, it was mandated by 160 states to monitor and report on progress towards SDG 4.0 education.
  • The study examines and assesses important educational topics and challenges around the world.
  • It also provides evidence-based insights and policy recommendations for bettering educational systems and outcomes.

Concerns expressed in the report

  • The Ills of Digital Learning: The research emphasises that if technology is utilised excessively or without the presence of qualified teachers, the learning benefits decline.
  • Equitable Learning: According to the research, imbalances in learning occur when instruction becomes solely remote, impacting vulnerable pupils, particularly in rural places.
  • Evidence-based Approach: The paper advocates for reliable, unbiased evidence on the impact of technology on education, as most available research comes from technology companies and may be biassed.
  • Costs and Sustainability in the Long Run: Countries must evaluate the long-term costs of digital learning and connection. The growth of the Edtech business should not be allowed to overwhelm unfulfilled basic education demands.
  • AI threats include: The advancement of generative AI and technology involves the development of digital literacy and critical thinking abilities.
  • Children’s Rights: During the epidemic, several internet education programmes ran the risk of violating children’s rights.

Key endorsements include the prohibition of smartphones in schools

  • The paper supports the prohibition of smartphones in schools if technological integration does not increase learning or has a negative impact on student well-being.
  • According to research, prohibiting mobile phones in schools can improve academic performance, particularly among low-performing kids.
Source: https://www.unesco.org/en/articles/smartphones-school-only-when-they-clearly-support-learning#:~:text=Only%20when%20they%20clearly%20support%20learning,-26%20July%202023&text=The%202023%20Global%20Education%20Monitoring,includes%20the%20use%20of%20smartphones.
Categories
Governance

Digital birth certificates will help to simplify official documentation

The Registration of Births and Deaths (RBD) Amendment Bill, 2023, has been introduced in India in order to introduce digital birth certificates that will act as comprehensive records for a variety of critical functions.

About RBD Bill, 2023

It amends the Registration of Births and Deaths Act, 1969.

The registration of births and deaths is governed by the Act.

Key Takeaways from the Bill National Database:

  • The Bill requires the establishment of an Indian Registrar General to keep a national database of recorded births and deaths. Chief Registrars will also maintain state-level databases that are linked to the national database.
  • Integration of Aadhaar: Aadhaar details of parents and informants must be provided by specified persons reporting births, which includes adoptive parents, biological parents in surrogacy cases, and single parents or unwed moms.
  • Digital Registration: The proposed Bill aims to streamline public services by introducing digital registration and electronic distribution of birth and death certificates.
  • Death Certificates: Medical institutions are required to give certificates indicating the cause of death for fatalities that occur on their premises.
  • Certificates must be distributed quickly: The Registrar must transmit birth and death certificates to the individual who registered the event within seven days of registration.
  • Individuals who are dissatisfied with the actions or orders of the Registrar or District Registrar may file an appeal with the District Registrar or Chief Registrar within 30 days of receipt. The appeal decision must be made within 90 days.
  • The Bill proposes to collect Aadhaar details in order to simplify registration for adopted, orphaned, abandoned, surrendered, surrogate, and children of single parents or unwed mothers.
  • Integration with the National Population Register (NPR): The CRS database will be used to update the NPR, ration cards, and property registration records, improving the NPR’s effectiveness and setting the framework for the National Register of Citizens (NRC).

@the end

  • The adoption of digital birth certificates in India represents a big step forward in improving administrative operations and public services.
  • The country hopes to increase efficiency and transparency in accessing numerous critical services by implementing a centralised system for registration and digital distribution of credentials.
Source: https://www.nsw.gov.au/digital-birth-certificates-helping-to-keep-your-identity-safe
Categories
Economics Uncategorized

What caused India’s FOREX reserves to fall?

  • According to the RBI, India’s foreign reserves stood at $578.4 billion in March 2023, a decrease of more than $28 billion from March 2022, $19.7 billion of which was attributable to value changes.
  • The fall in the value of the US dollar, along with increased capital flows, has contributed to a jump in reserves this year.

What is Foreign Exchange (Forex) Reserve?

  • Foreign exchange reserves are essential assets kept by the central bank as reserves in foreign currencies.
  • They are frequently employed to support the currency and set monetary policy.
  • Foreign reserves in India include gold, dollars, and the IMF’s quota for Special Drawing Rights.
  • Given the currency’s prominence in the worldwide financial and trade system, the majority of reserves are normally stored in US dollars.
  • In addition to US dollars, several central banks retain reserves in Euros, British pounds, Japanese yen, or Chinese yuan.

India’s forex reserves cover:

  • Foreign Currency Assets (FCAs)
  • Special Drawing Rights (SDRs)
  • Gold Reserves
  • Reserve position with the International Monetary Fund (IMF)

Current Situation: The Effects of US Rate Hikes and Capital Inflows

  • Rate Hikes in the United States and Capital Flows: Rate hikes by the United States Federal Reserve have spurred a flow of international investments into the United States Treasury, resulting in capital outflows from India.
  • Potential capital inflows: The US Fed has raised interest rates by 75 basis points so far this year. This could enhance capital inflows into emerging markets such as India.
  • Improved Balance of Payment (BoP): India’s BoP has greatly improved, with the current account deficit anticipated to be less than 2% of GDP.
  • Resumption of Equity Capital Flows: Equity capital flows have resumed, and India continues to draw considerable investments when compared to other emerging market counterparts.

Global Position of India’s Forex Reserves Among Nations:

  • India ranks fourth among countries with the largest forex reserves, trailing only China, Japan, and Switzerland.
  • Differences in Reserve Accumulation: Due to a competitive export market, most countries sustain large and consistent current account surpluses. India, Brazil, and the United States, on the other hand, have accumulated reserves predominantly through capital flows rather than a significant current account surplus.

The RBI’s Strategy for Diversifying Foreign Exchange Reserves

  • The RBI intends to internationalise the Indian rupee in order to lessen dependency on foreign currencies.
  • Exploring the Use of Asian Clearing Union Currencies: The RBI is investigating the use of currencies from Asian Clearing Union member countries, including the rupee, for payment and settlement among themselves.
  • An agreement with the Central Bank of Sri Lanka allows the rupee to be used as a recognised foreign currency, encouraging trade between the two nations and enabling rupee transactions for Indian visitors in Sri Lanka.

@the end

  • While India’s forex reserves have fluctuated due to a variety of circumstances, the country’s ongoing efforts to diversify and increase its reserves position demonstrate the RBI’s proactive attitude.
  • The continued emphasis on attracting foreign investment, together with initiatives to internationalise the rupee, may contribute to a more stable and resilient forex reserve management system in the future.
Source: https://m.economictimes.com/news/economy/indicators/indias-forex-reserves-fall-2-91-billion-to-593-2-billion-as-of-june-23/articleshow/101395343.cms#:~:text=Much%20of%20the%20decline%20since,against%20a%20surging%20US%20dollar.
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