The Hindu Newspaper Analysis 24th March 2020

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1)The ‘Global Risks Report’ is published by

2)‘Saksham’ Campaign was in news recently. What is it associated with?

a) Fuel Conservation
b) Ban of Single Use Plastics
c) Water Conservation
d) Filing Tax Returns

3)‘Pin Valley National Park’ is located in

a) Ladakh
b) Himachal Pradesh
c) Arunachal Pradesh
d) Jammu & Kashmir

1)The Global Risks Report is an annual study published by the World Economic Forum ahead of the Forum’s Annual Meeting in Davos, Switzerland. Based on the work of the Global Risk Network, the report describes changes occurring in the global risks landscape from year to year.

2)March 24: World Tuberculosis Day:- Every year, March 24 is marked as the World Tuberculosis Day. The idea was proposed by International Union Against Tuberculosis and Lung Disease (IUATLD). The day is also marked by the World Health Organization (WHO).

The Day is being marked to raise public awareness about the devastating social and economic impacts caused by the disease. The Theme of 2020 World Tuberculosis Day is

Theme: It’s Time
To Scale up prevention and treatments
To build accountability
To build financial sustainability towards research
To put an end to discrimination and stigma

Why 24th march: Dr Robert Koch announced the discovery of the bacterium causing Tuberculosis on the very same day.

3)ICMR recommends Hydroxychloroquine to treat Corona Virus:– The Indian Council of Medical Research had constituted a National Task Force to fight against COVID-19. The task force has recommended the use of Hydroxychloroquine to treat Corona Virus.

The drug shall be provided to patients only through prescriptions. GoI recommends the use of Pharmacovigilance Programme of India app or helpline.

4)News:- Markets bleed,Sensex dives 4,000 points

Stock market trading was stopped for 45 minutes since Lower circuit of the stock was touched and market was at a lower level.

What is Tradimg Curb/Trading Halt:- 

A trading curb is a financial regulatory instrument that is in place to prevent stock market crashes from occurring, and is implemented by the relevant stock exchange organization.

What is a lower or upper circuit?

Lower or upper circuit is an automatic mechanism to stop a freefall or massive surge in a security or an index during trading hours. It is used to check the volatile swings in the market.

When is circuit used?
The index-based market-wide circuit breaker system applies at three stages of the index movement, either way at 10 per cent, 15 per cent and 20 per cent.

A detailed mechanism is as followed:

10% trigger limit: If this limit is breached before 1 pm, trade is halted for 45 minutes. If the same is breached between 1 pm to 2.30 pm, trade is halted for 15 minutes. After 2.30 pm, there is no halt in trading.

15% trigger limit: If this limit is breached before 1 pm, trade is halted for 1 hour 45 minutes. If the same is breached between 1 pm to 2.30 pm, trade is halted for 45 minutes. After 2.30 pm, trade is halted for the remainder of the day.

20% trigger limit: If this limit is breached any time during trading hours, trading is halted for the remainder of the day.

5)News :- Professionals join hands to digitise over 900 Yakshagana scripts

More than 900 Yakshagana scripts, including the ones printed in 1905 and 1907, have now been digitised and made available online for free, thanks to the voluntarycommunity effort by some Yakshagana lovers who did it under the banner Yakshavahini, a registered trust.

About Yakshgana :-Yakshagana is a traditional Indian theatre form, developed in Dakshina Kannada, Udupi, Uttara Kannada, Shimoga and western parts of Chikmagalur districts, in the state of Karnataka and in Kasaragod district in Kerala that combines dance, music, dialogue, costume, make-up, and stage techniques with a unique style.

6)Preventive drug for healthcare workers cleared:- The use of hydroxyl chloroquine as prophylaxis forhigh risk population facedwith the SARSCoV-2 infection was recommended by the Indian Council of Medical Research’s (ICMR) national task force on Monday.

Editorial Of the Day :- A pandemic, an economic blow and the big fix

We all know the Economic impacts of Covid-19 , and lockdown due to it on the Indian Population. Where on one hand production has decreased, workers have lost jobs, investment is not coming, many industries and factories getting shut. Covid-19 has led to a global economic crisis.

It is not just happening in India but also in other countries.

But India still laga in some fields than other countries for example:-

  • UK has promised to give U.K.’s biggest economic recovery package in its history, as an antidote to the crisis;
  • Germany is going ahead with ‘unlimited government financing’ for the disruptions due to the outbreak.
  • France, Spain, Italyand the Netherlands have alllaunched a half a trillion dollars combined in recovery measures.

India does not have such big funds to spend, neither we have still made any such announcement.

While the rest of the world has sprung into action, India has merely announced the setting up of a task force under the Finance Minister to explore economic recovery options.

A three-step plan can be opted :-

  1. The destruction of jobs, incomes and consumption can be addressed through a direct cashtransfer of ₹3,000 a month, for six months, to the 12 crore, bottom half of all Indian households.
  2. The Mahatma Gandhi NationalRural Employment Guarantee Act (MGNREGA) must be expandedand retooled into a public works programme, to build much needed hospitals, clinics, rural roads and other infrastructure.
  3. In addition, the Food Corporation of India is overflowing with excess rice, wheat and unmilled paddy stocks — enough excess stock to provide 10 kg rice and wheat to every Indian family, freeof cost, through the Public Distribution System.

This combination, of a basic income of ₹3,000 a month, a right towork and food grains, will provide a secure safety net.

Steps for the central bank:- Further, the RBI should show regulatory forbearance and also set up a credit guarantee fund for distressed borrowers for credit rollover and deferred loan obligation.

In summary, India needs an immediate relief package of ₹5lakh crore to ₹6lakh crore targeted across all sections of society and sectors of the economy.

7)About SEBI :-

About

SEBI is a statutory body established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.

The basic functions of the Securities and Exchange Board of India is to protect the interests of investors in securities and to promote and regulate the securities market.

Background

Before SEBI came into existence, Controller of Capital Issues was the regulatory authority; it derived authority from the Capital Issues (Control) Act, 1947.

In April, 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.

Initially SEBI was a non statutory body without any statutory power.

It became autonomous and given statutory powers by SEBI Act 1992.

The headquarters of SEBI is situated in Mumbai. The regional offices of SEBI are located in Ahmedabad, Kolkata, Chennai and Delhi.

Structure

SEBI Board consists of a Chairman and several other whole time and part time members.

Further, a Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.

SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.

It functions to fulfill the requirements of three categories –

Issuers – By providing a marketplace in which the issuers can increase their finance.

Investors – By ensuring safety and supply of precise and accurate information.

Intermediaries – By enabling a competitive professional market for intermediaries.

By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.

8)News :- Priority sector classification for NBFCs too:- The RBI has decided to extend priority sector classification for bank loans to NBFCs for onlending for FY2020-21.

Applicatie till 31st March as a motivation step for Covid-19.

Credit to NBFCs and HFCs for onlending will be allowed up to an overall 5% of the bank’s totalpriority sector lending.

Lending by a commercial bank for certain sectors which are identified as “priority sector” by the central bank (Reserve Bank of India) is called as priority sector lending.

Priority sector lending (PSL) should constitute 40 percent of Adjusted Net Bank Credit.

Categories of Priority Sector:-
Agriculture and Allied Activities (Direct and Indirect finance

Small Scale Industries (Direct and Indirect Finance)

Small Business / Service Enterprises

Micro Credit

Education loans

Housing loans

Weaker Sections 

Renewable energy sector

Map Based : Afghanistan and Bordering Countries 

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