Context: As per a latest study,even low levels of Arsenic consumption may impact cognitive function in children, adolescents, and young adults.
Those exposed to Arsenic had reduced grey matter (brain tissue that is vital to cognitive functions) and weaker connections within key regions of the brain that enable concentration, switching between tasks, and temporary storage of information.
Arsenic contamination of water:
Arsenic is a natural component of the earth’s crust and is widely distributed throughout the environment in the air, water and land. Highly toxic in its inorganic form, it is introduced into soil and groundwater during weathering of rocks and minerals followed by subsequent leaching and runoff.
People are also exposed to elevated levels of inorganic Arsenic through:
Drinking or using contaminated water in food preparation and irrigation of food crops
Industrial processes (Arsenic is used industrially as an alloying agent, and in the processing of glass, pigments, textiles, paper, metal adhesives, wood preservatives and ammunition)
Smoking tobacco (tobacco plants can take up Arsenic naturally present in the soil).
Impacts:
Long-term exposure can lead to mortality due to chronic Arsenic poisoning, multiple cancers (skin lesions and skin cancer), lung disease, heart attacks, kidney failure and diseases of the skin (colour changes, and hard patches on palms and soles).
Negative impacts of Arsenic exposure on cognitive development, intelligence and memory.
Adverse pregnancy outcomes, infant mortality and impacts on child health.
Management of Arsenic contamination:
A common strategy employed is to encourage piped water access rather than groundwater extraction, adopting rainwater harvesting/ watershed management practices and installing Arsenic removal plants.
Context: Chief Justice of India D.Y. Chandrachud said the independence of judiciary depends on the freedom of each and every individual judge to function in office without the pulls of political pressure, social compulsions, and inherent bias.
“The independence of the Supreme Court is integral to the maintenance of a democratic way of life and rule of law. It is not very difficult for a nation which is a democracy having a Constitution to slip into chaos, into just the opposite of democracy,” Justice Joseph said.
Syllabus:
General Studies- II: Governance, Constitution, Polity, Social Justice and International relations:
Rule of Law and its relation with Independence of Judiciary?
It would be appropriate to discuss the views of Dicey, as he is known to be the main exponent of the concept of rule of law.
According to Dicey’s theory, rule of law has three pillars based on the concept that “a government should be based on principles of law and not of men”, these are-
Supremacy of Law;
Equality before the Law; and
Predominance of Legal spirit.
According to Dicey, for the prevalence of the rule of law there should be an enforcing authority and that authority he found in the courts. He believed that the courts are the enforcer of the rule of law and hence it should be free from impartiality and external influence.
The rule of law provides two basic protections against arbitrary or discriminatory government action.
It provides that the rule applied to a particular case must be reasonably predictable.
And it provides that the rule must be predictable without regard for the identity of the parties.
Judicial independence ensures, in particular, that judges are free to conclude that actions taken, or decisions made by the Government (or even by others) are in breach of the law, and that they are in particular in breach of individual's rights, including of course their fundamental, or human, rights - and to decide on the appropriate remedy.
Why the Judiciary needs to be Independent?
Independence of Judiciary is sine qua non of democracy. In a democratic polity, the supreme power of state is shared among the three principal organs. The constitutional task assigned to the Judiciary is no way less than that of other functionaries, legislature and executive.
Indeed it is the role of the Judiciary to carry out the constitutional message and it is its responsibility to keep a vigilant watch over the functioning of democracy in accordance with the dictates, directives, and imperative commands of the constitution by checking excessive authority of other constitutional functionaries.
Our Constitution does not strictly adhere to the doctrine of separation of powers but it does provide for distribution of power to ensure that one organ of the government does not trench on the constitutional powers of other organs.
The concept of distribution of powers assumes the existence of judicial system free from external as well as internal pressures. Under our constitution, the Judiciary has been assigned the onerous task of safeguarding the fundamental rights of our citizens and upholding the Rule of Law. Perhaps the most important power of the Supreme Court is the power of judicial review.
Judicial Review means the power of the Supreme Court (or High Courts) to examine the constitutionality of any law if the Court arrives at the conclusion that the law is inconsistent with the provisions of the Constitution, such a law is declared as unconstitutional and inapplicable. The term judicial review is nowhere mentioned in the Constitution.
However, the fact that India has a written constitution and the Supreme Court can strike down a law that goes against fundamental rights, implicitly gives the Supreme Court the power of judicial review. Together, the writ powers and the review power of the Court make judiciary very powerful. In particular, the review power means that the judiciary can interpret the Constitution and the laws passed by the legislature.
Many people think that this feature enables the judiciary to protect the Constitution effectively and also to protect the rights of citizens. The practice of entertaining PILs has further added to the powers of the judiciary in protecting rights of citizens.
Since the courts are entrusted the duty to uphold the constitution and the laws, it very often comes in conflict with the state when it tries to enforce orders. Therefore, the need for an independent and impartial Judiciary manned by persons of sterling quality and character, underlying courage and determination and resolution impartiality and independence who would dispense Justice without fear or favor, ill will or affection, is the cordial creed of our constitution and a solemn assurance of every Judge to the people of this great country.
The Judiciary cannot remain a mere bystander or spectator but it must become an active participant in the judicial process ready to use law in the service of social justice through a proactive goal oriented approach. But this cannot be achieved unless we have judicial cadres who share the fighting faith of the constitution and are imbued with constitutional values.
Judicial independence ensures, in particular, that judges are free to conclude that actions taken, or decisions made by the Government (or even by others) are in breach of the law, and that they are in particular in breach of individual's rights, including of course their fundamental, or human, rights - and to decide on the appropriate remedy.
Independence of Indian Judiciary
The constitution of India adopts diverse devices to ensure the independence of the judiciary in keeping with both the doctrines of constitutional and Parliamentary sovereignty.
Elaborated provision are in place for ensuring the independent position of the Judges of the Supreme Court and the High Courts.
Firstly, the judges of the Supreme Court and the High Courts have to take an oath before entering once that they will faithfully perform their duties without fear, favour, affection, ill-will, and defend the constitution of India and the laws. Recognition of the doctrine of constitutional sovereignty is implicit in this oath.
Secondly, the process of appointment of judges also ensures the independence of judiciary in India. The judges of the Supreme Court and the High Courts are appointed by the President. The constitution of India has made it obligatory on the President to make the appointments in consultation with the highest judicial authorities. He, of course, takes advice of the Cabinet. The constitution also prescribes necessary qualifications for such appointments. The constitution tries to make the appointments unbiased by political considerations.
Thirdly, the Constitution provides for the Security of Tenure of Judges. The judges of the Supreme Court and the High Courts serve “during good behavior” and not during the pleasure of the President, as is the case with other high Government officials. They cannot be arbitrarily removed by the President. They may be removed from office only through impeachment. A Judge can be removed on the ground of proved misbehavior or incapacity on a report by both Houses of the Parliament supported by a special majority.
Fourthly, the salaries and allowances of judges are charged upon the Consolidated Fund of India. Further, the salaries and allowances of Judges of Supreme court and High courts cannot be reduced during their tenure, except during a financial emergency under Article 360 of the Constitution.
Fifthly, the activities of the Judges cannot be discussed by the executive or the legislature, except in case of their removal.
Sixth, the retirement age is 65 years for Supreme Court judges and 62 years for High court judges. Such long tenure enables the judges to function impartially and independently.
Independence of judiciary and rule of law are the basic features of the Constitution and cannot be abrogated even by constitutional amendments as observed by the Hon’ble Supreme Court in S.P. Gupta v Union of India; AIR 1982.
Certainly, let's expand on each of the mentioned aspects concerning threats to judicial independence in India:
Retirement Age (Different for HC and SC Judges): The disparity in retirement ages for judges of the High Court (HC) and the Supreme Court (SC) can create a situation where judges might be influenced by the prospect of elevation to the higher court before reaching the retirement age. This could potentially compromise their independence as judges may be tempted to make decisions that align with the preferences of those in power.
Post-Retirement Appointments: The practice of judges accepting post-retirement appointments, especially in government commissions, tribunals, or other quasi-judicial bodies, raises concerns about potential conflicts of interest. Judges may be inclined to rule favorably for the government during their tenure in the hope of securing a lucrative post-retirement position, impacting their impartiality.
Appointment of Chief Justice of India: The appointment process of the Chief Justice of India (CJI) has faced criticism for lacking transparency. The influence of the executive and political considerations in the appointment process may compromise the independence of the judiciary, as the CJI plays a crucial role in determining the course of the judicial system.
CJI as Master of the Roster: The CJI being the master of the roster implies that they have the authority to allocate cases to different benches of the court. This power, if not exercised judiciously, can lead to the manipulation of cases to favor certain outcomes or to assign cases selectively. Such discretion can be a potential threat to the impartiality of the judicial system.
The Collegium System: The Collegium system, while intended to safeguard judicial independence, has faced criticism for being opaque and lacking accountability. The process of appointment and transfer of judges through the Collegium system might be susceptible to external pressures, potentially compromising the independence of the judiciary.
Judicial Delays: Prolonged delays in the disposal of cases can undermine public confidence in the judiciary. The backlog of cases can be exploited by powerful individuals or entities to their advantage, and the perception of delayed justice might impact the credibility of the judiciary, thereby affecting its independence.
Code of Conduct for Judges: While a code of conduct for judges exists, the effectiveness of its enforcement is crucial. Weak enforcement mechanisms can render the code toothless, allowing judges to engage in misconduct without facing adequate consequences, thus jeopardizing the integrity of the judiciary.
Code of Ethics for Judges: The code of ethics is essential for maintaining the ethical standards of judges. However, the absence of a comprehensive and enforceable code, along with potential loopholes, may create opportunities for unethical behavior. This can undermine public trust and confidence in the judiciary.
The constitution provides for a judiciary, which is independent. Independence of judiciary is important for the purpose of fair justice. There should be no interference by the legislature or the executive in the proceedings of the judiciary so that it may pass a judgment that seems reasonably fair. In case of intervention, there may be an element of bias on the part of the judges in taking a fair decision. It is difficult to suggest any other way to make the Indian courts more self-reliant and keep them away from the influence of the other two organs.
Context:The International Solar Alliance (ISA) is engaging in discussions with member-countries, such as India and European nations, regarding contributions to its payment guarantee fund and insurance fund.
Solar Payment Guarantee Fund:
It aims to provide essential support to solar energy projects in the event of default, mitigating the risk of premature closures or bankruptcy.
To benefit from this fund, projects will contribute a premium, ensuring their coverage. By doing so, the fund effectively alleviates concerns among lenders, making financing more accessible for projects that may have otherwise struggled to secure funding.
The payment guarantee fund will offer only partial coverage. This intentional limitation is designed to discourage opportunistic behaviour and prevent the inclusion of subpar projects.
By minimizing the possibility of default, the fund opens up opportunities for short-term investments in regions that have historically received limited investment.
It allows investors to participate in solar projects without relying on the guarantee fund for recourse.
Solar Insurance Fund:
It aims to alleviate the burden of insurance premiums for solar developers specifically during the pre-revenue phase or construction phase of the project.
The goal is to enhance the bankability of solar projects by mitigating the impact of high insurance premiums.
It would collaborate with reputable project insurance organizations, such as Multilateral Investment Guarantee Agency (MIGA), to provide insurance coverage.
During the specified period, the fund would cover a portion or the entirety of the insurance premium, effectively reducing the financial strain on developers.
To recover the covered insurance premium, projects could incorporate an additional tariff during the revenue phase, allowing them to recoup the costs incurred during the pre-revenue stage.
About International Solar Alliance (ISA):
It is an action-oriented, member-driven, collaborative platform for increased deployment of solar energy technologies as a means for bringing energy access, ensuring energy security, and driving energy transition in its member countries.
The ISA was conceived as a joint effort by India and France to mobilize efforts against climate change through deployment of solar energy solutions.
It was conceptualized on the side-lines of the 21st Conference of Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris in 2015.
Its headquarter is located at Gurugram.
The ISA's Framework Agreement was amended in 2020, making all member states of the United Nations eligible to join.
The ISA is guided by its ‘Towards 1000’ strategy which aims to mobilise USD 1,000 billions of investments in solar energy solutions by 2030, while delivering energy access to 1,000 million people using clean energy solutions and resulting in installation of 1,000 GW of solar energy capacity. This would help mitigate global solar emissions to the tune of 1,000 million tonnes of CO2 every year.
Activities under the programmes focuses on 4 priority areas – Analytics & Advocacy, Capacity Building, Programmatic Support, and readiness and enabling activities, that help create a favourable environment for solar energy investments to take root in the country.
Context: During the two-day National Ayush Mission Conclave 2023 important roundtable discussion was held for participating Health and Ayush Ministers from states and UTs governments. The major thrust of the discussion was to strengthen Ayush infrastructure through National Ayush Mission in states and UTs.
About National Ayush Mission:
The flagship program of the National Ayush Mission was launched in 2014 by the Ministry of Ayush.
It has played a crucial role in preserving and promoting India's traditional systems of medicine and their integration into the mainstream healthcare system.
It aims to enhance the availability, accessibility, and quality of Ayush healthcare services across the country through Ayush Health Wellness Centers (AHWCs) as part of the Government of India’s Ayushman Bharat scheme.
The NAM comprises the components of Ayush Services and Ayush Educational Institutions in addition to newly introduced Ayush Public Health Programs.
Production Linked Incentive refers to a rebate given to producers. This rebate is calculated as a certain percentage of sales of the producer (sales referred in it can be total sales or incremental sales).
For example, the PLI scheme for the Electronics Sector offered a rebate of 4-6% on the incremental sales of the producer.
The incentives, calculated on the basis of incremental sales, range from as low as 1 per cent for the electronics and technology products to as high as 20 per cent for the manufacturing of critical key starting drugs and certain drug intermediaries.
Key features of the PLI Scheme
The scheme is outcome-based, which means that incentives will be disbursed only after production has taken place.
The calculation of incentives is based on incremental production at a high rate of growth. In some sectors such as advanced chemistry cell batteries, textile products and the drone industry, the incentive to be given will be calculated on the basis of sales, performance and local value addition done over the period of five years.
The scheme focuses on size and scale by selecting those players who can deliver on volumes.
The selection of sectors covering cutting-edge technology, sectors for integration with global value chains, job-creating sectors and sectors closely linked to the rural economy, is highly calibrated.
Also, the design of the earlier PLI scheme for electronics is such that it is compatible with World Trade Organization commitments as the quantum of support is not directly linked to exports or value-addition.
Sectors Covered under PLI Scheme (14 Sectors)
Key Starting Materials (KSMs)/Drug Intermediates (DIs) and Active Pharmaceutical Ingredients (APIs): Department of Pharmaceuticals
Manufacturing of Medical Devices: Department of Pharmaceuticals
Pharmaceuticals drugs: Department of Pharmaceuticals
Large Scale Electronics Manufacturing: Ministry of Electronics and Information Technology
Electronic/Technology Products: Ministry of Electronics and Information Technology
Telecom & Networking Products: Department of Telecommunications
Food Products: Ministry of Food Processing Industries
White Goods (ACs & LED): Department for Promotion of Industry and Internal Trade
High-Efficiency Solar PV Modules: Ministry of New and Renewable Energy
Automobiles & Auto Components: Department of Heavy Industry
Advance Chemistry Cell (ACC) Battery: Department of Heavy Industry
Textile Products: MMF segment and technical textiles: Ministry of Textiles
Specialty Steel: Ministry of Steel
Drones and Drone Components: Ministry of Civil Aviation
PLI Scheme for IT Hardware
The PLI for IT hardware such as laptops, tablets, all-in-one computers, and servers was first announced in February 2021 with an initial outlay of around Rs 7,300 crore over a period of four years.
Under the scheme, domestic players investing Rs 20 crore and clocking sales of Rs 50 crore in the first year, Rs 100 crore in the second, Rs 200 crore in the third, and Rs 300 crore in the final year, would pocket incentives of 1-4 per cent on incremental sales over 2019-20, the base financial year.
The first version of the scheme was a laggard with only two companies – Dell and Bhagwati – managing to meet first year’s (FY22) targets, and the industry called for a renewed scheme with an increased budgetary outlay.
Revised Scheme
The Union Cabinet cleared a revised production linked incentive (PLI) scheme for IT hardware with an outlay of Rs 17,000 crore, which is more than double the budget of the scheme that was first cleared in 2021.
Implementation: The scheme will be implemented from July 1, with a cap on maximum incentives available to participating companies.
Tenure: The tenure of the new scheme has been fixed for six years and the Centre is expecting an investment of over Rs 2,430 crore as part of it.
Expected Outcome: The expected incremental production value could touch Rs 3.35 lakh crore, and the scheme could generate 75,000 direct jobs – in total, the employment figure could touch 2 lakh when accounted for indirect jobs.
Coverage: Investments made by eligible companies in contract manufacturers and for attaining exclusive arrangements with component manufacturers will also be considered under the scheme.
Investment: It is worth noting that under the previous PLI scheme, the expected investment was pegged at Rs 2,500 crore – under the renewed plan, that projection has been reduced (to Rs 2,430 crore) despite sweetening the incentive structure.
Incentives: The average incentive over six years will be about 5 per cent compared with the 2 per cent over four years offered earlier. Companies that locally manufacture certain components including memory modules, solid state drives and display panels will also get additional incentives under the restructured scheme. There will be flexibility in choosing the base year as well.
Cap: While the final policy with its specifics is yet to be released, it is understood that for global companies, the maximum incentive has been capped at Rs 4,500 crore, Rs 2,250 crore for hybrid – which have an element of both global and domestic entities – and Rs 500 crore for domestic companies.
Analysis of the Scheme
The PLI scheme was conceived to scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation. The government has set aside Rs 1.97 lakh crore under the PLI schemes for various sectors and an additional allocation of Rs 19,500 crore was made towards PLI for solar PV modules in Budget 2022-23.
As of December 2022, 650 applications have been approved under 13 Schemes and more than 100 MSMEs are among the PLI beneficiaries in sectors such as Bulk Drugs, Medical Devices, Telecom, White Goods and Food Processing.
The electronics industry continues to ascend in importance as its applications become pervasive, particularly in the socio-economic development of a country. Electronics, supported by continuously improving communication services, will significantly enhance productivity, efficient service delivery, and social transformation.
The domestic electronics industry, as of FY20, is valued at US$118 billion. India aims to reach US$300 billion worth of electronics manufacturing and US$ 120 billion in exports by FY263, supported by the vision of a US$ 1 trillion digital economy by 2025. Improvement in manufacturing and export over the past five years ensures that India is on the right trajectory to achieve this target.
Electronic goods were among the top five commodity groups exhibiting positive export growth in November 2022, with the exports in this segment growing YoY by 55.1%.
The major drivers of growth in this industry are mobile phones, consumer electronics, and industrial electronics. In the mobile phone segment, India has become the second-largest mobile phone manufacturer globally, with the production of handsets going up from six crore units in FY15 to 31 crore units in FY22. These numbers are expected to improve as more domestic and global players set up and expand their bases in India.
Participation in the PLI scheme will help many more domestic players to attain economies of scale in production through localising. Hence, this will further enhance export competitiveness and increase India’s participation in the global value chain.
As one of the earliest ones, the ministry of electronics and information technology’s PLI scheme for large-scale electronics manufacturing (LSEM) saw successful results, with 97% of mobile phones sold in India now being made in India. Furthermore, they are also being “Made in India for the World” as we witness a sharp growth in smartphone exports by 139% over the last three years.
As of September 2022, the PLI scheme for LSEM attracted investments of ₹4,784 crore, with a total production of ₹2,03,952 crore, while also generating 41,000 additional jobs. In the medium-term, the scheme is expected to bring in additional production to the tune of ₹10.69 lakh crore and generate 700,000 jobs.
Similar successes are replicated in the pharma sector PLI with 35 imported active pharmaceutical ingredients or key chemical inputs for drugs being developed in India. In addition, other sectors, such as food products, telecom and networking products, and drones are reporting successes with visible growth in investment, employment, and production. Over 600 foreign and domestic firms have been selected across 14 key sectors in two years, indicating enthusiastic industry participation.
Benefits of PLI Scheme
The renewed scheme could attract big global IT hardware manufacturers to shift their production base to India and give a boost to local production of laptops, servers and personal computers.
It focusses on expanding India’s production and presence in Global value chains of IT hardware, servers and laptops. By deepening & broadening the electronics ecosystem in India, this scheme will play a key role in catalysing India’s tech trade and in achieving the $1 trillion digital economy goal – including $300 billion of electronics manufacturing by 2025-26.
The IT hardware industry is targeted to reach a production of $24 billion by 2025-26, with exports anticipated to be in the range of $12-17 billion during the same period. This revised PLI is expected to serve as a major catalyst for both global and domestic companies aiming to establish or expand their IT hardware manufacturing operations in India.
The successes signal that the scheme is leading to the development of a potent ecosystem that is self-sustaining and thriving.
Focuses on advanced technologies: it is likely to upgrade the skills of the existing labour force.
Replace technologically obsolete machinery and make the manufacturing sector globally competitive.
Enhanced production volumes will cater to increasing consumer demand. This can be seen for telecom and networking products, where timely intervention by the scheme will enable faster adoption of 4G and 5G products across India.
With PLI in green technologies, India can pioneer green policy implementation with a reduced carbon footprint.
Better productivity will create a thrust in free trade agreements for better market access.
Increased sales will demand better logistical connectivity. The PM Gati Shakti plan provides multimodal connectivity to manufacturing zones across India, making logistics and operations efficient. Cluster parks with plug-and-play infrastructure have also been introduced to support manufacturing in different regions.
Context: The Securities and Exchange Board of India (SEBI) has proposed changes in the current definition of unpublished price sensitive information (UPSI) in a bid to bring regulatory certainty and uniformity in compliance by listed entities.
About Stock Markets
It is a place where shares of public listed companies are traded.
The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.
Once new securities have been sold in the primary market, they are traded in the secondary market - where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority.
In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).
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. Thus, it is the meeting place of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Laws Governing the 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)
Depositories Act, 1996.
The framing of these laws reflect the evolution and development of the capital market in India.
Securities and Exchange Board of India (SEBI)
Structure:
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 and five 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.
The SEBI Act empowers SEBI to protect the interests of investors and to regulate and promote the development of the capital/securities market.
SEBI was given the power to 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.
It also has the power to impose penalties such as monetary penalties, including suspending or cancelling the registration.
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.
As part of the development of the securities market, Parliament passed the Depositories Act and SEBI made regulations to enforce the provisions.
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 (DEMAT) form. SEBI set up the infrastructure for doing this by registering depositories and depository participants.
The depository regulations empower SEBI to regulate functioning of depositories and depository participants by prescribing eligibility conditions, periodic inspections and powers to impose penalties including suspending or cancelling the registration as well as monetary penalties.
Appeals against orders of SEBI and the stock exchanges can be made to the Securities Appellate Tribunal (SAT) comprising a presiding officer and two other members. Appeals from the SAT can be made to the Supreme Court.
Functions Of SEBI
Curbing Market Volatility:
While SEBI does not interfere to prevent market volatility, exchanges have circuit filters — upper and lower — to prevent excessive volatility.
However, SEBI can issue directions to those who are associated with the market, and has powers to regulate trading and settlement on stock exchanges.
Using these powers, SEBI can direct stock exchanges to stop trading, totally or selectively.
It can also prohibit entities or persons from buying, selling or dealing in securities, from raising funds from the market and being associated with intermediaries or listed companies.
Monitor Fund-raising:
The Companies Act, which regulates companies incorporated/registered in India, has delegated the authority to enforce some of its provisions to SEBI, including the regulation of raising capital, corporate governance norms such as periodic disclosures, board composition, oversight management and resolution of investor grievances.
Specific regulations are enacted by SEBI from time to time in order to:
Regulate fund-raising activities
Ensure that listed companies followed corporate governance norms
Regulation of entities involved in fund-raising through issues of capital such as merchant bankers.
Regulate Stock Exchanges:
The SCRA has empowered SEBI to recognise and regulate stock exchanges and later commodity exchanges in India. Powers of SEBI in this regard concerns with:
Declare an instrument as a security.
Regulate listing of securities like equity shares, the functioning of stock exchanges including control over their management and administration.
Powers to determine the manner in which a settlement is done on stock exchanges and recognising and regulating clearing corporations.
Provision for arbitrating disputes that arise between stock brokers who trade on stock exchanges and investors who are clients of such stock brokers.
Protect the interests of investors by creating an Investor Protection Fund for each stock exchange.
Safeguards Against Fraud:
Fraud undermines regulation and prevents a market from being fair and transparent.
SEBI has been given the powers of a civil court to summon persons, seize documents and records, attach bank accounts and property, and to carry out investigations.
SEBI notified Regulations to:
Prevent the two key forms of fraud, market manipulation, and insider trading.
Ensures protection of investors’ interests by regulating the listing and trading of equity shares and other securities, and by registering and regulating institutions handling public funds.
Challenges In Stock Market Regulations
Enforcement process: SEBI has made various regulations and issued orders as a civil court but only making regulations and giving orders is not enough if it is not able to enforce the same.
Dearth of human resources: SEBI unable to attract smart bright talent inside SEBI. In 2012 SEBI had 643 employees whereas the US security and exchange commission alone had 1000 people.
Deepening capital market: The total number of DEMAT accounts increased by 37% in the last year, however monthly active users have declined. SEBI has done a lot to encourage people to participate in the capital market such as abolishing entry load on mutual funds, simplifying KYC norms but it needs to take some stronger steps to deepen participation in the capital market.
Corporate debt and securitization market: Despite numerous attempts the debt market volume has increased but it has failed to attract sufficient liquidity.
Matching up to global standard: Capital markets are growing and the size of SEBI as compared to the security market is not sufficient to properly regulate the capital market.
Non-transparent recruitment process: SEBI’s appointment process has always been criticised. Allegations of corruption by SEBI staff are frequently heard. The accountability mechanisms that envelope SEBI are quite poor.
Wide legislative and discretionary powers with SEBI
Limited and selective prior consultation with the market.
Securities offering documents are extraordinarily bulky with little to no substantive disclosures of high quality.
Obsolete Regulations: as regulations on merger and acquisition are nearly six years old.
Way Forward
SEBI needs to strengthen its surveillance and enforcement functions.it needs to ensure that violations do not go unnoticed whether small or large.
It also needs to increase its human resource in both quality and quantity. It needs to significantly improve its market intelligence, technology and talent pool in order to improve its performance.
SEBI should work deeper participation in equity by pension, superannuation and gratuity funds, developing a vibrant retail debt segment and reducing the cost of transaction.
The regulator needs to develop a vibrant corporate debt market and securitization market but these largely remain part of the over the counter market.
Like its peers (regulators of US and UK) it needs to establish self-regulatory organisations. They can focus on routine decisions and SEBI can work on more important issues.
It is also very important to make the recruitment process fair and transparent.
Context: The World Meteorological Organisation (WMO) has released its yearly update on its forecasts for temperature trends over the following ten years.
Key points
The annual mean global near-surface temperature for each year between 2023 and 2027 is likely to be 1.1°-1.8°C higher than the average from 1850-1900.
There is a 66% chance that the global near-surface temperature will exceed 1.5°C above pre-industrial levels, in at least one year before 2027 though it is unlikely that the five-year mean will exceed this threshold.
At least one of the years, from 2023 to 2027 will be the hottest on record — exceeding the 14.84°C reported in 2016 (it was about 0.07°C warmer than the previous record set in 2015).
The five-year mean for 2023-2027 was very likely to be higher than that in the last five years (2018-2022).
The El Niño-Southern Oscillation (ENSO) is likely to be positive in December to February 2023-24, meaning that the Central Equatorial Pacific Ocean is likely to be at least half a degree, more likely over a degree above what is normal.
Hotter oceans also mean stronger cyclones. For Example- Cyclone Mocha, which barrelled through Myanmar this week and claimed at least 60 lives and wrought severe damage.
Forecast for India
The WMO update does not have specific inputs for India; however, the overall trend in indicators suggests that India, dependent as it is on rain-fed agriculture and with its long coastline, will be severely tested due to changes in the global climate.
India’s abilities at forecasting cyclones and weather anomalies have improved but developing resilience is far more challenging. Greater investments in bolstering disaster-related infrastructure are the need of the hour.
Paris Agreement
The Paris Agreement is a legally binding international treaty on climate change. It was adopted by 196 Parties at COP 21 in Paris, in 2015.
Important Provisions of Paris Agreement
Long-term temperature goal (Art. 2) – limiting global temperature increase to well below 2 degrees Celsius, while pursuing efforts to limit the increase to 1.5 degrees.
Mitigation (Art. 4) – The Paris Agreement establishes binding commitments by all Parties to prepare, communicate and maintain a nationally determined contribution (NDC) and to pursue domestic measures to achieve them.
It also prescribes that Parties shall communicate their NDCs every 5 years and provide information necessary for clarity and transparency.
Finance, technology and capacity-building support (Art. 9, 10 and 11) – The Paris Agreement reaffirms the obligations of developed countries to support the efforts of developing country Parties to build clean, climate resilient futures, while for the first time encouraging voluntary contributions by other Parties.
Global Stocktake (Art. 14) – A “global stocktake”, to take place in 2023 and every 5 years thereafter, will assess collective progress toward achieving the purpose of the Agreement in a comprehensive and facilitative manner.
World Metrological Organisation
WMO is a specialized agency of the United Nations (UN) with 193 Member States and Territories.
Its mandate is in the areas of meteorology (weather and climate), operationalhydrology and related geophysical sciences.
The Secretariat, headquartered in Geneva, is headed by the Secretary General.
India is a member of WMO. It has been the member since 1949
Context: The European Union’s approval this week of new deforestation regulations poses a threat to Indian exports of items like coffee, leather, paper and wooden furniture.
The regulation is part of a larger trend of “demand-side” restrictions, in which major consumers of agricultural commodities are leveraging their market share to encourage sustainable production. The United Kingdom recently approved a similar regulation, and United States lawmakers introduced a similar bill in Congress. In March, the Chinese government announced an initiative with Brazil’s largest beef lobby for deforestation-free beef exports.
What is the new deforestation regulation of the European Union?
It requires EU-based companies to ensure that their imports and exports are “deforestation-free” and uphold human rights, Human Rights Watch.
The law establishes the legal requirements for European businesses regarding biodiversity loss and human rights abuses embedded in their international supply chains.
On April 19, 2023, the European Parliament voted for the European Union Deforestation-Free Products Regulation (EUDR).
Regulations covering wood, palm oil, soy, coffee, cocoa, rubber, and cattle they import or export have not been produced on land that was deforested after December 31, 2020.
The law requires companies to trace the commodities back to the plot of land where they were produced, or, in the case of cattle, the particular locations where the animals were raised.
The regulation also requires companies to ensure that these seven agricultural commodities are produced in conditions that comply with “relevant laws” in their country of origin.
These include laws on land use rights; labour rights; human rights protected under international law; free, prior, and informed consent, as set out in the United Nations Declaration on the Rights of Indigenous Peoples; and anti-corruption laws.
Even the European companies will also have to ensure that the commodities they produce domestically comply with the regulation, raising questions about some EU member states’ practices. In Sweden, for example, the timber industry has often encroached upon land that Sami people rely on for reindeer husbandry, a practice central to their cultural identity.
Within 18 months after it enters into force, the European Commission will announce which producer countries – including EU member states – are deemed low, medium, or high risk based on their rate of deforestation and forest degradation, and the existence, compliance with, and effective enforcement of laws protecting human rights, the rights of Indigenous peoples, local communities, and other customary tenure rights holders, among other criteria.
Products from countries determined to be “high risk” will face tougher scrutiny by EU customs authorities and require European companies to conduct greater in-depth due diligence when sourcing from those locations.
Larger companies will have 18 months after the regulation enters into force to make changes to comply with the law before facing penalties for violations. The new rules will apply to large firms from December 2024 and small firms by June 2025.
Why such a move?
Deforestation is second only to fossil fuels as a global source of greenhouse gas emissions fueling the climate crisis. Globally, industrial agriculture is the most significant driver of deforestation.
Industrial agriculture has been linked to a range of human rights abuses, including forced and child labour, dangerous exposure to toxic pesticides, forced evictions and displacement, encroachment on Indigenous peoples’ traditional territories, and violence and intimidation against environmental defenders, among others.
The volume of deforestation associated with EU imports is second only to China, according to a 2021 study by the World Wildlife Fund and Trase.
For example: Nearly one-tenth (9.6 percent) of Malaysia’s sawn wood exports were headed for the EU in 2021, according to the Observatory of Economic Complexity (OEC), a trade database.
Impact on India:
Regulations would impact 479 products exported from India worth around 1.3 billion dollars.
This would make new participants in the agro-goods export-less. They would have to re-orient their policies.
Indian exporters would have to look for new markets for their products in future. This would raise the transportation costs, partnership cost and insurance cost on the exported items. Thereby hurting the exports in the long-term.
Way-forward
India along with other developing and agro-exporting countries should create a platform and negotiate with the members of the European Union.
Context: A five judge bench of the Supreme Court upheld the amendments made by Tamil Nadu, Maharashtra and Karnataka to the Prevention of Cruelty to Animals (PCA) Act of 1960. These amendments allowed the bull taming sports like Jallikattu, Kambala and bullock cart races.
What is Jallikattu?
Jallikattu is a traditional bull-taming sport that is primarily practiced in the Indian state of Tamil Nadu. The word "Jallikattu" is derived from the Tamil words "Jalli" (meaning gold or silver coins) and "Kattu" (meaning a bundle). The sport involves the running of bulls in an open field, and participants attempt to grab the bull's hump and hold on to it for a certain distance or time to win prizes, which are usually tied to the bull's horns.
What is the controversy surrounding Jallikattu?
Controversy surrounding Jallikattu stems from concerns related to animal welfare and the treatment of the bulls involved.
Animal rights activists argue that the sport inflicts unnecessary harm and cruelty on the bulls.
They claim that the bulls are often subjected to physical abuse, including being prodded, poked, and harassed by the participants, which can lead to injuries and distress.
Activists also highlight instances where the bulls are reportedly force-fed alcohol or chili powder to agitate them before the event.
How the Supreme Court has seen this case so far?
In 2014,the Supreme Court of India banned Jallikattu, citing animal welfare concerns. The court observed that the bulls used in the sport are often subjected to unnecessary pain and suffering.
The ban sparked protests in Tamil Nadu, where Jallikattu is deeply rooted in the cultural and social fabric. Supporters of Jallikattu argue that it is an integral part of Tamil tradition and should be preserved as a cultural heritage.
They claim that proper regulations and safeguards can be implemented to ensure the welfare of the animals without completely banning the sport.
The controversy surrounding Jallikattu intensified in 2017 when widespread protests erupted in Tamil Nadu against the ban. The protests gained momentum, with people demanding the revival of the sport and a reversal of the court's decision.
Eventually, in 2017, the Tamil Nadu government passed an amendment to the Prevention of Cruelty to Animals Act, which exempted Jallikattu from the ban and allowed its practice under certain regulations. This move received mixed reactions, with some celebrating it as a victory for tradition and others expressing disappointment over what they perceived as a compromise on animal welfare.
What happened after the 2014 ban by the Supreme Court?
The Supreme Court over-ruled its 2014 judgement, which had essentially outlawed sports like Jalikattu, Kambala and Bullock Cart race.
In 2017, the Tamil Nadu government amended the PCA act thereby allowing jallikattu in the state. The state government sought exemption on grounds to preserve the cultural heritage of Tamil Nadu and to ensure survival and well-being of native breeds of bulls.
Following the Tamil Nadu, Karnataka government amended the PCA Act in Jan- 2017 to pave the way for Kambala.
In July-2017, Mahrashtra government also followed the suit.
What is the latest Supreme Court judgement all about?
Tamil Nadu Amendment Act is not a piece of colourable legislation.
2017 amendment act minimises cruelty to animals in the concerned sports.
The sports will not come under the definition of cruelty defined in the 1960 Act.
2017 amendment does not violate Article 51-A (g) and 51-A(h), which imposes duties of Indian citizen to protect the environment and develop scientific temper.
The amendment does not violate Article 14 and 21.
What is doctrine of colourable legislation?
The doctrine of colourable legislation is a legal principle used to determine the constitutional validity of a law or legislation. It refers to a situation where a law appears to be valid on its face, but its true purpose is to circumvent constitutional limitations or deceive the courts or the public.
The term "colourable" means something that appears to be true or genuine but is, in fact, false or deceptive. In the context of legislation, it refers to a law that is enacted under the pretense of exercising a valid legislative power, but its actual purpose is to achieve an unconstitutional objective.
What is Kambala?
Kambala is a traditional sport that originated in the southern coastal region of Karnataka, India. It is a form of buffalo racing that has been practiced for centuries in rural communities.
Kambala is usually held in the months of November to March during the harvest season.
In Kambala, two buffalo racers called "jockeys" run through a muddy paddy field while holding onto a wooden plow. The jockeys are typically barefoot and are often seen wearing colorful attire.
The buffaloes used in the race are specially bred and trained for this purpose. They are typically guided by the jockey, who tugs at the plow to urge the buffaloes to run faster.
Kambala is not only a sporting event but also a significant cultural celebration in the region. The races are often accompanied by traditional music and dance performances, and the entire community comes together to participate in the festivities. Kambala is seen as a way to honor and showcase the agricultural heritage of the region.
What is Bullock Cart race festival of Maharashtra?
Bullock cart racing starts from November and lasts till May.
It is a cultural activity and popular amongst farming community in Alibag Taluka in Maharashtra.
Local Bullock art owners and farmers arrange this race mostly in their villages. Bullock cart owners pay obeisance to Shri Nageshwar during Vaikunth Chaturdashi Yatra at Awas.
The Maharashtrian version of bullock cart racing was known as Bailgada Sharyat, a 450-year-old tradition of the farmers of Konkan, western Maharashtra and Marathwada.
These cattle races formed an integral part of the Jatras or village fairs that were held between Makar Sankranti and the Monsoon months, a time when the farmers were not busy in the fields.
The money that is raised by the races is utilized for the betterment of the village and for the renovation of the local temples. In this manner, cattle racing in India is an adventure sport that also helped to raise funds for social causes.
Context:In the final report released by the expert group setup by WMO highlighted a general negative association between temperature and Covid 19 transmission. The expert group was setup in 2020 to assess whether meteorological factors like heat and humidity had any role to play in transmission of Covid 19 virus.
About WMO
WMO is a specialized agency of the United Nations (UN) with 193 Member States and Territories.
It is the UN system's authoritative voice on the state and behaviour of the Earth's atmosphere, its interaction with the land and oceans, the weather and climate it produces and the resulting distribution of water resources.
Origin
WMO originated from the International Meteorological Organization (IMO), which was founded in 1873 to facilitate the exchange of weather information across national borders.
Established in 1950, the WMO became a specialized agency of the United Nations in 1951. Its mandate is in the areas of meteorology (weather and climate), operational hydrology and related geophysical sciences.
It has fostered collaboration between the National Meteorological and Hydrological Services of its Members and furthered the application of meteorology in many areas.
In collaboration with other United Nations agencies and National Meteorological and Hydrological Services, WMO supports the implementation of a number of environmental conventions and is instrumental in providing advice and assessments to governments on related matters. These activities contribute towards ensuring the sustainable development and well-being of nations.
Governance Structure
Secretariat: The Secretariat, headquartered in Geneva, is headed by the Secretary-General.
In June 2019, the World Meteorological Congress approved a reform of the WMO governance and a vision for 2030 as well as other changes that called for an overhaul of the structure of the Secretariat. One of the most important changes implemented thus far is the creation of a Board of Directors.
WMO undertakes this task through the National Meteorological and Hydrological Services of its Members, which own and operate the systems for collecting, processing and analysing information from thousands of observation systems, including satellites and ships. It also ask Services to develop climate change detection tools and software to compute indices that reflect the best estimate of climate trends within the countries.
WMO issues Annual, Five-Year and Decadal Statements on the Status of the Global Climate. These statements document extreme weather and climate events in the regional context and provide a historical perspective on the variability and trends of climate, particularly surface temperatures that have occurred since the 19th century.
India is a member of WMO. It has been the member since 1949 and India’s permanent representative is the head Director General of Meteorology of the IMD.
Context:The Canadian government declared Chinese diplomat Zhao Wei “persona non grata,” for allegedly targeting a Canadian lawmaker critical of China’s human rights record. Hours later, China announced a “reciprocal countermeasure” by asking Jennnifer Lynn Lalonde, a top diplomat in the Canadian consulate in Shanghai, to leave the country by May 13. Tensions soared with China saying it holds the “right to take further actions in response”, while Prime Minister Justin Trudeau put out a strongly worded statement, reiterating that Canada will not be intimidated.
History of straining Canada-China ties?
Diplomatic ties between China and Canada have been unsteady for the past few years, especially after Canadian police arrested Huawei Technologies executive Meng Wanzhou on charges of fraud in 2018. A few days after her arrest, China detained two Canadians on spying charges a move then called “hostage diplomacy”
China had suspended imports of canola from Canada, alleging pests in the shipment
Canada has also alleged that the Chinese government attempted to interfere in the 2019 and 2021 federal elections a charge Beijing vehemently denies.
The two countries are also engaged in a technology battle. While Canada has limited the presence of Chinese firms in its communications infrastructure, Beijing believes the restrictions were imposed without any solid evidence.
The tension between the leadership was also visible at the G-20 summit in Indonesia last year, when Chinese President Xi Jinping and the Canadian PM exchanged barbs over leaked details of their meeting about Chinese interference in domestic affairs.
The Recent Spat:
At the centre of the latest spat is a report from the Canadian Security Intelligence Service (CSIS)
A series of media reports also highlighted about growing Chinese interference in Canada, a report on an intel document from 2021 which detailed potential threats to opposition lawmaker Michael Chong and his family in Hong Kong over the latter’s criticism of Beijing. Citing an anonymous national security official as its source, the newspaper reported that Chinese consul Zhao Wei was involved in gathering information about Mr. Chong and his family in Hong Kong to target him over his anti-Chinese sentiments
Michael Chong was targeted because he led legislative efforts in Canada’s House of Commons to declare China’s treatment of Uyghurs and other minorities in Xinjiang as “genocide”. In response, Beijing barred his entry into China.
After details of the CSIS report were revealed, the Canadian government was heavily criticised for its inaction against China. Internal deliberations followed about the future course of action, seemingly to prepare for any economic repercussions since China is Canada’s second-biggest trade partner.
Canada declared diplomat Zhao Wei “persona non grata” (Latin for an unwelcome person). Canada reiterated that it would “not tolerate any form of foreign interference in our internal affairs.”
China also responded strongly on actions of Canada, warning of retaliatory measures.
Chinese Foreign Ministry spokesperson Wang Wenbin had urged Canada to stop “unreasonable provocations”. Later China issued an order asking Ms. Lalonde to leave the country.
Conclusion:
The future course of diplomatic relations between the two countries will be sharply observed by neighbouring countries like USA, India etc which are themselves having contentious relationship with China and are apprehensive of aggressive rise of China at regional and global level.
