20 FEBRAURY CURRENT AFFAIRS

Topic 1: Stock Market in India

Context: The Supreme Court asked the Securities and Exchange Board of India (SEBI) and the government to produce the existing regulatory framework in place to protect investors from share market volatility.

What is a stock market?

• It is a place where shares of pubic listed companies are traded.
• A stock exchange facilitates stock brokers to trade company stocks and other securities.
• A stock may be bought or sold only if it is listed on an exchange.
• India’s premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.
• Primary market:
  • The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.
• Secondary market:
  • Secondary market is a market where one investor buys shares from another investor at the prevailing market price.

The BSE and NSE

• Most of the trading in the Indian stock market takes place on its two stock exchanges:
  • The Bombay Stock Exchange (BSE) and
  • The National Stock Exchange (NSE).
• The BSE has been in existence since 1875.
• The NSE was founded in 1992 and started trading in 1994.
• Both exchanges follow the same trading mechanism, trading hours, and settlement process.
• The BSE is the older stock market but the NSE is the largest stock market, in terms of volume.

Market Indexes

• The two prominent Indian market indexes are Sensex and Nifty.
  • Sensex is the oldest market index for equities
    • It was created in 1986 and provides time series data from April 1979, onward.
• Nifty was created in 1996 and provides time series data from July 1990 onward.

Market Regulation

• The stock market is regulated by the Securities and Exchange Board of India (SEBI).
• It was formed in 1992 as an independent authority.
• It enjoys vast powers of imposing penalties on market participants, in case of a breach.

Laws governing the stock market

• The securities market in India is regulated by four key laws:
  • The Companies Act, 2013,
  • the Securities and Exchange Board of India Act, 1992 (SEBI Act),
  • the Securities Contracts (Regulation) Act, 1956 (SCRA) and
  • the Depositories Act, 1996.
• The Sebi Act:
  • The SEBI Act empowers SEBI to protect the interests of investors and to promote the development of the capital/securities market, besides regulating it.
  • SEBI was given the powerto:
    • register intermediaries like stock brokers, merchant bankers, portfolio managers and
    • regulate their functioning by prescribing eligibility criteria, conditions to carry on activities and periodic inspections.
  • SEBI also has the power to impose penalties.
• The SCRA:
  • The SCRA empowers SEBI to:
    • recognise and derecognise stock exchanges,
    • prescribe rules and bye laws for their functioning, and
    • regulate trading, clearing and settlement on stock exchanges.
• Depositories Act:
  • This Act introduced and legitimised the concept of dematerialised securities being held in an electronic form.
  • Today almost all the listed securities are held in dematerialised form.
  • What is a dematerialized security?
    • Dematerialisation is a process through which physical securities such as share certificates and other documents are converted into electronic format and held in a Demat Account.
    • A depository is responsible for holding the securities of a shareholder in electronic form.

SEBI’s role during market volatility

• What is market volatility?
  • Market volatility is the frequency and magnitude of price movements, up or down.
• While SEBI does not interfere to prevent market volatility, exchanges have circuit filters — upper and lower — to prevent excessive volatility.
• SEBI can direct stock exchanges to stop trading or prohibit entities or persons from buying, selling or dealing in securities, etc.

Guidelines on fund-raising

• The Companies Act has delegated the authority to enforce some of its provisions to SEBI, including the regulation of raising capital, 
• SEBI brought out a set of guidelines called the Disclosure and Investor Protection Guidelines which were thereafter subsumed into a more comprehensive Issue of Capital and Disclosure Requirement Regulations.
• In order to ensure that listed companies followed corporate governance norms, SEBI notified the Listing Obligations and Disclosure Requirements Regulations in 2015.
• The Collective Investment Regulations define a CIS (collective investment scheme) and provide for penal actions against those running unregistered CIS schemes.
• Entities involved in fund-raising through issue of capital such as merchant bankers are also regulated through specific regulations.

Regulation of stock exchanges:

• The SCRA has empowered SEBI to recognise and regulate stock exchanges and later commodity exchanges in India.
  • This was earlier done by the Union government.
• Powers to declare an instrument as a security remain vested in SEBI.
• The Act also seeks to protect the interests of investors by creating an Investor Protection Fund for each stock exchange.

Safeguards against fraud

• SEBI notified the Prohibition of Fraudulent and Unfair Trade Practices Regulations in 1995 and the Prohibition of Insider Trading Regulations in 1992 to prevent the two key forms of fraud:
  • market manipulation and
  • insider trading.
• Violation of these regulations are predicate offences that can lead to a deemed violation of the Prevention of Money Laundering Act.
• SEBI has been given powers of acivil court to:
  • summon persons,
  • seize documents and records,
  • attach bank accounts and property and
  • to carry out investigations.

• Appeals against SEBI:
  • Appeals against orders of SEBI and the stock exchanges can be made to the Securities Appellate Tribunal (SAT).
  • Appeals from the SAT can be made to the Supreme Court.
• Securities Appellate Tribunal (SAT)

• A Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by Sebi’s decision.
• SAT consists of a presiding officer and two other members.

Securities and Exchange Board of IndiaSEBI is a statutory body and a market regulator, which controls the securities market in India.The basic functions of Sebi is to protect the interests of investors in securities and to promote and regulate the securities market. Sebi is run by its board of members.The board consists of a Chairman and several other whole time and part time members.The chairman is nominated by the union government.The others include:two members from the finance ministry,one member from Reserve Bank of India andfive other members are also nominated by the Centre.The headquarters of Sebi is situated in Mumbai and the regional offices are located in Ahmedabad, Kolkata, Chennai and Delhi.HistoryBefore Sebi came into existence, Controller of Capital Issues was the regulatory authority.It derived authority from the Capital Issues (Control) Act, 1947.In 1988, Sebi was constituted as the regulator of capital markets in India.Initially, Sebi was a non-statutory body without any statutory power.Following the passage of the Sebi Act by Parliament in 1992, it was given autonomous and statutory powers.

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Topic 2: Crimes against humanity

Context: The United States has determined that Russia has committed crimes against humanity in Ukraine.

What are crimes against humanity?

• Crimes against humanity are widespread or systemic criminal acts which are committed by or on behalf of a de facto authority.
• Unlike war crimes, crimes against humanity do not have to take place within the context of wars.
• Crimes against humanity do not need to be part of an official policy, and they only need to be tolerated by authorities.
• Unlike genocide and war crimes, crimes against humanity aren’t officially codified in an international treaty.
  • But these are still adjudicated in the International Criminal Court (ICC) and other global bodies.
• The 1998 Rome Statute defines the term:
  • It says crimes against humanity are acts such as murder, enslavement, torture and rape that are committed as part of a widespread or systematic attack directed against any civilian population, with knowledge of the attack.
  • The statute further mentions that crimes against humanity do not need to be linked to an armed conflict and can also occur in peacetime, similar to the crime of genocide.

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Topic 3: Poliovirus

Context: The West Bengal government announced that it was introducing an additional dose of injectable polio vaccine as part of the Universal Immunisation Programme (UIP) for children.

Key details:

• What is polio?
  • Polio, or poliomyelitis, is a disabling and life-threatening disease caused by the poliovirus.
  • The virus spreads from person to person and can infect a person’s spinal cord, causing paralysis.
  • Poliovirus can invade the central nervous system causing irreversible paralysis in hours.
• Types:
  • There are three types of polio virus serotypes: types 1, 2 and 3.
• Prevention
  • There are two types of vaccine that can prevent polio:

• Inactivated poliovirus vaccine (IPV) given as an injection in the leg or arm, depending on the patient’s age.
• A live attenuated (weakened) oral polio vaccine (OPV) is still used throughout much of the world.
• Treatment:
  • There is no cure for polio.

India’s achievement against polio

• In 2012, the WHO removed India from the list of endemic countries.
• In 1995, the Union government announced the first National Polio Immunisation Day.
• Detection of last cases in India:
  • The last case of poliovirus type 2 case was recorded in India in October 1999 at Aligarh, Uttar Pradesh.
  • The last case of poliovirus type 3 case was on October 22, 2010, at Pakur, Jharkhand.
  • The last case of poliovirus type 1 case was recorded on January 13, 2011, at Howrah, West Bengal.
• As of 2022, the WHO said only two countries worldwide remain with indigenous transmission of wild poliovirus type 1 (WPV1) — Afghanistan and Pakistan.
• Government initiatives:
  • Pulse Polio initiative:
    • The Pulse Polio Initiative was started with an objective of achieving hundred per cent coverage under Oral Polio Vaccine.
    • It aimed to immunize children.
  • Intensified Mission Indradhanush 2.0:
    • A nationwide immunisation drive that marked 25 years of Pulse polio programme.
• Universal Immunization Programme (UIP):
  • Universal Immunisation Programme (UIP) is a vaccination programme launched in 1985.
  • The programme consists of vaccination for 12 diseases-
    • tuberculosis, diphtheria, pertussis (whooping cough), tetanus, poliomyelitis, measles, hepatitis B, diarrhoea, Japanese encephalitis, rubella, pneumonia (haemophilus influenzae type B) and Pneumococcal diseases (pneumococcal pneumonia and meningitis).

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Topic 4: Pluto

Context: Today, according to the International Astronomical Union (IAU), our solar system officially has eight planets: Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus and Neptune. In 2006 Pluto was declared a dwarf planet.

Key details:

• Pluto is the largest known dwarf planet in the solar system and used to be considered the ninth and most distant planet from the sun. 
• It is located in the Kuiper Belt, a donut-shaped region of icy bodies beyond the orbit of Neptune.
• Pluto stopped being a planet in 2006 when it was reclassified as a dwarf planet.
• New Horizons spacecraft:
  • In 2015, NASA’s New Horizons spacecraft made its historic flight through the Pluto system.
  • It provided the first close-up images of Pluto and its moons.
• Why Pluto’s status was degraded?
  • Pluto’s status as a planet fell into jeopardy from 1992 onwards, when the Kuiper Belt was discovered.
  • In 2005, astronomers at announced the discovery of a new trans-Neptunian object, Eris, which was substantially more massive than Pluto.
  • Finally, in 2006, the International Astronomical Union came up with a resolution that created an official definition of a “planet”.
  • The resolution outlined three criteria that a planet must meet in order to be so classified:

• The object must be in orbit around the sun
• The object must be big enough to be rounded by its own gravity, and
• The object must have cleared the neighbourhood around its orbit.

• Pluto failed to meet the third criterion.
• For celestial objects that satisfy the first two criteria but not the third, the IAU came with the classification of “dwarf planet”.

About International Astronomical Union:The IAU is a nongovernmental organisation.The International Astronomical Union is the foremost international association of professional astronomers.It has more than 13000 individual members and 82 national members, including India.Aims:Advancing astronomy in all aspects, including promoting astronomical research, outreach, education, and development through global cooperation.It was founded in 1919 and is based in Paris, France.

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Topic 5: Sickle cell anaemia

Context: Sickle cell anaemia (SCA), a genetic blood disorder, found mention in the Budget this year as the government will work in mission mode to eliminate the condition by 2047.

What is sickle cell anaemia?

• Haemoglobin which is tasked with carrying oxygen to all parts of the body, has four protein subunits:
  • two alpha and two beta.
• Mutations in the gene that creates the beta subunits impact the shape of the blood cell and distorts it to look like a sickle.
• A round red blood cell can move easily through blood vessels because of its shape but sickle red blood cells end up slowing, and even blocking, the blood flow.
• Sickle cells die early, resulting in a shortage of red blood cells that deprive the body of oxygen.
• Consequences:
  • Chronic anaemia,
  • Pain,
  • Fatigue,
  • Acute chest syndrome,
  • Stroke, etc.

Prevalence of SCA:

• It is more common among tribal populations than non-tribal communities in India.
• SCA is prevalent in communities residing in areas where malaria is endemic.
• The documented prevalence of SCA is higher in communities that practice endogamy, as the chances of having two parents with sickle cell trait is higher.
   

Treatment

• Sickle cell anaemia is a genetic disorder, making complete elimination a challenge.
• The only cure comes in the form of gene therapy and stem cell transplants both costly and still in developmental stages.
• Blood transfusion, wherein red blood cells are removed from donated blood and given to a patient, is also a trusted treatment.

Government initiatives:

• India is the second-worst affected country in terms of predicted births with SCA — i.e. chances of being born with the condition.
• National Sickle Cell Disease Control Programme:
  • The overall aim is to enable access to affordable and quality health care to all SCD patients, and to lower the prevalence of the disease.
  • Three pillars of the programme:
    • Health promotion
    • Prevention
    • Holistic Management
• Portal for SCA:
  • The Ministry of Tribal Affairs has launched the Sickle Cell Disease Support Corner to bridge the gap between patients and health care services in tribal areas.
  • The Portal provides a web-based patient powered registration system which will collate all information related to SCD among tribal people in India.
• The National Council on Sickle Cell Disease:
  • The National Council on Sickle Cell Disease has also been constituted of senior officials of GoI and health care private and public bodies for timely and effective action.
• Unmukt project:
  • The project was launched for strengthening screening and timely management of SCD in Jharkhand and Chhattisgarh.
• Budget 2023 announcement:
  • In the Budget the government plans to distribute “special cards” across tribal areas to people below the age of 40.
  • The cards will be divided into different categories based on the screening results.
  • The mission will receive funding under the National Health Mission.

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Topic 6: Sealed cover jurisprudence

Context: The Chief Justice of India firmly refused the ‘suggestions’ offered by the government in a sealed cover on the formation of a proposed committee to enquire into the Hindenburg report on the Adani Group.

What is sealed cover jurisprudence? 

• It is a practice used by the Supreme Court or lower courts of asking for or accepting information from government agencies in sealed envelopes that can only be accessed by judges.
• Any specific law does not define the doctrine of sealed cover.
• The Supreme Court derives its power to use it from the Supreme Court Rules and Section the Indian Evidence Act of 1872.
• What the rules say?
  • The information to be kept under sealed cover is of confidential nature.
  • No party would be allowed access to the contents of such information.
    • Exception:
      • If the Chief Justice himself orders that the opposite party be allowed to access it.
  • The rules also mention that information can be kept confidential if its publication is not considered to be in the interest of the public.
  • Official unpublished documents relating to state affairs are protected and a public officer cannot be compelled to disclose such documents.

Criticism:

• It is not favorable to the principles of transparency and accountability of the Indian justice system.
• It is standing in contrast to the idea of an open court, where decisions can be subjected to public scrutiny.
• It also enlarge the scope for arbitrariness in court decisions.
• Not providing access to such documents to the accused parties obstructs their passage to a fair trial and adjudication.
•  It denies the affected party its right to challenge an order since the issue is decided on documents that are not shared with them.
• It tilts the balance of power in litigation in favour of a dominant party, which has control over information.

Conclusion:

• In a democracy, only a small set of acts by public agencies must remain in the realm of secrecy such as:
  • delicate international negotiations or those that relate to sensitive aspects of security,
  • details about survivors of sexual assaults or child abuse.
• The principles of natural justice demand that all parties in litigation get a fair chance to scrutinise evidence.
• Citizens are entitled to know the reasons for court verdicts and subject them to scrutiny.
• Such transparency is also one of the sources of legitimacy of the institution of the judiciary.

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Topic 7: GST appellate tribunal

Context: The Goods and Services Tax (GST) Council reached a consensus to constitute the GST Appellate Tribunal to resolve the rising number of disputes under the GST regime that are now clogging High Courts and other judicial fora.

What is GST?

• GST stands for Goods and Services Tax.
• It is an indirect tax that was implemented to replace previous indirect taxes, including the value-added tax, service tax, purchase tax, excise duty, etc.
• Types of GST in India
  • Central Goods and Services Tax:
    • It is charged on the intra state supply of products and services.
  • State Goods and Services Tax :
    • It is charged on the sale of products or services within a state.
  • Integrated Goods and Services Tax:
    • It is charged on inter-state transactions of products and services.
  • Union Territory Goods and Services Tax:
    • It is levied on the supply of products and services in any of the Union Territories in the country.
    • It is levied along with CGST.

GST Appellate Tribunal

• The Appellate Tribunal under GST is a quasi-judicial body.
• It has been established to provide a platform for the resolution of disputes that arise between businesses, individuals, and the government regarding the implementation and interpretation of the GST laws.
• The Tribunal operates as an appellate authority that hears appeals against the decisions and orders of the lower authorities.
• Hierarchy for appeal:
  • Under GST, if a person is not satisfied with the decision passed by any lower court, an appeal can be raised to a higher court.
  •  The hierarchy from low to high is:

• Adjudicating Authority
• Appellate Authority
• Appellate Tribunal
• High Court
• Supreme Court.

• Powers:
  • As per the Code of Civil Procedure, 1908, the GST Appellate Tribunal holds the same powers as a civil court.
  • It has been granted the powers to hear appeals and to pass orders and directions, including those for the recovery of amounts due, for the enforcement of its orders, and for the rectification of mistakes.
  • The Tribunal also has the power to impose penalties, revoke or cancel registrations, and ensure compliance of the GST laws.
• Structure of GST Appellate Tribunal
  • National Bench:
    • The National Appellate Tribunal is situated in New Delhi.
  • Regional Benches:
    • Mumbai,
    • Kolkata,
    • Hyderabad
  • State Bench and Area Bench:
    • For each state

Conclusion

• Matters involving the interpretation of law have found their way to High Courts through writ in absence of GST Tribunals.
• Without an ultimate fact-finding authority in the form of GTAT in place, knocking on the doors of High Courts is not viable.
• It is time that the GST Tribunal is formed without further delay and starts addressing the mounting litigations, expeditiously.

What is the GST Council?The Goods and Services Tax regime came into force after the Constitutional (122nd Amendment) Bill was passed by both Houses of Parliament in 2016.The GST Council is a joint forum of the Centre and the states.It was set up by the President as per Article 279A (1) of the amended Constitution.Members:The Union Finance Minister (chairperson)The Union Minister of State (Finance) from the CentreEach state can nominate a minister in-charge of finance or taxation or any other minister as a member.Role:According to Article 279 it is meant to make recommendations to the Union and the states on important issues related to GST.It also decides on various rate slabs of GST.

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Topic 8: Underwater noise emissions

Context: The rising man-made (anthropogenic) underwater noise emissions (UNE) from ships in the Indian waters are posing a threat to the life of marine mammals like Bottlenose dolphin, Manatees, Pilot whale, Seal and Sperm whale.

Key details:

• The main form of energy for multiple behavioural activities of marine mammals is based on sound.
• However, the sound that radiates from ships, on a long-term basis, affects them and results in internal injuries, loss of hearing ability, change in behavioural responses, masking, and stress.
• What is an Underwater noise emission or ocean noise?
  • Ocean noise refers to sounds made by human activities that can interfere with or obscure the ability of marine animals to hear natural sounds in the ocean.
• Noise pollution in Indian waters:         
  • The UNE or underwater sound pressure levels in the Indian waters are 102-115 decibels.
  • The East Coast level is slightly higher than that of the West.
• Causes:
  • Continuous shipping movement is identified to be a major contributor to the increase in the global ocean noise level.
    • The noises from ships are overlapping the marine species’ communication frequencies.
    • This is called masking, which could have led to a change in the migration route of the marine species to the shallow regions.
    • It is also making it difficult for them to go back to the deeper water.