EDITORIALS & ARTICLES
30th April 2021
New SEBI rule for fund manager compensation
Recently, the Securities and Exchange Board of India (SEBI) has said that a minimum 20% of the compensation of mutual fund managers in an asset management company (AMC) should be in the form of units of the mutual fund schemes they manage.
Changes announced by SEBI
- The SEBI has specified the rules of allocation of this 20% by saying that is should be proportional to the assets under management of the schemes in which an employee has a role or oversight.
- The SEBI has also said that a fund manager who manages only one fund will have at least 50% of this type of compensation in the scheme she manages.
- The regulator has also specified that the units offered by way of compensation are locked-in for three years.
Reasons for changes announced by SEBI
- The primary objective of new rule is to align the interest of the key employees of the AMCs with the unit holders of the mutual fund schemes.
- The SEBI wants fund managers to have skin in the game, or demonstrate to investors that they have confidence in the schemes they manage.
Implication of new SEBI rule on investors
- The move by SEBI will boost the transparency of fund manager compensation and also helps build accountability.
- It ensures that fund houses actually link the pay of fund managers to performance and go beyond lip service.
- It could encourage whistleblowing if wrongdoing is happening.
- It will give a lot of psychological comfort to investors that their fund manager has skin in the game.
Arguments from Mutual Fund industry against new SEBI rule
- The common refrain from mutual fund CEOs has been that SEBI’s intention is good but the rules are too clunky to follow.
- The rule by SEBI, which in effect specifies percentages of investments in different schemes, could conflict with the personal finance goals of the fund managers.
- It could even lead to a flight of talent from the industry.
Securities and Exchange Board of India (SEBI)
- It was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
- It is a statutory body which is constituted as the regulator of capital markets in India under a resolution of the Government of India.
- It is the regulator of the securities and commodity market in India owned by the Government of India.
- Its aim is to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Powers of SEBI
- Quasi-judicial powers: In cases of frauds and unethical practices pertaining to the securities market, SEBI India has the power to pass judgements.
- Quasi-executive powers: SEBI has the power to examine the Book of Accounts and other vital documents to identify or gather evidence against violations.
- Quasi-Legislative powers: To protect the interest of investors, the authoritative body has been entrusted with the power to formulate suitable rules and regulations.
Oldest Water on Earth
Recently, a 2016 study by Canadian geologists is eliciting significant interest, for the clues it offers in the search for alien life, especially on the Red Planet ‘Mars’.
Key Highlights
- The discovery of the water 2.4 km below the Earth’s surface has been heralded as one of great importance, given its ramifications on what we know about the origin and evolution of our planet.
- The investigations into the highly saline water led to a pathbreaking discovery as scientists found chemolithotrophic microbes in the water discovered at Kidd Creek mine.
- The chemolithotrophic microbe is a bacteria that can thrive in the most extreme surroundings.
- The researchers found that the microbes had been feeding on nitrogen and sulphate.
- It bore resemblance to ocean beds that are known to support similar such extreme life forms.
Oldest Water on Earth
- Sherwood Lollar had been carrying out research at the Kidd Creek mine since 1992.
- The Kidd Creek mine is located on the 2.7 billion-year-old Canadian Shield which is one of the world’s largest continental shields.
- It implies the oldest and least tectonically active parts of the Earth’s crust.
- It was on an expedition in 2009 that a musty smell led Sherwood Lollar to make the crucial discovery.
- The water discovered from Kidd Creek mine was highly saline i.e. ten times saltier than the sea water.
Relation between oldest water on earth and life on Mars
- The researchers believe that the Canadian Shield is the closest analogue on Earth to the subsurface of Mars, which suffers the least from plate tectonic activity.
- The scientists argue that if life-supporting water can be found 2.4 km below the Earth, it may be possible that the same could be true in the case of the Red Planet.
- It provides an impetus for missions like Perseverance, which are looking for signs of present or past life on Mars.
Kidd Creek mine
- The Kidd Creek copper/zinc mine is located near Timmins in Ontario, Canada.
- It produces indium, silver-bearing slimes, nickel-copper carbonate, liquid SO₂ and sulphuric acid along with copper and zinc.
- It is based on a rich, steeply dipping volcanogenic sulphide deposit located in theArchaean Abitibi greenstone belt.
Resignation by Judges in the High Court
Recently, the President Ram Nath Kovind accepted the resignation tendered by Justice Sharad Kumar Gupta from the office of Judge, Chhattisgarh High Court.
Appointment of Judges of High Court
- The judges of a high court are appointed by the President.
- The chief justice of high court is appointed by the President after consultation with the chief justice of India and the governor of the state concerned.
- The chief justice of the concerned high court is also consulted for appointment of other judges in High Court.
- In case of a common high court for two or more states, the governors of all the states concerned are consulted by the president.
- In the Second Judges case (1993), the Supreme Court ruled that no appointment of a judge of the high court can be made, unless it is in conformity with the opinion of the chief justice of India.
- In the Third Judges case (1998), the Supreme Court opined that in case of the appointment of high court judges, the chief justice of India should consult a collegium of two senior-most judges of the Supreme Court.
Tenure of Judges of High Court
- The Constitution has not fixed the tenure of a judge of a high court but it makes the following four provisions in this regard:
- He holds office until he attains the age of 62 years.
- Any questions regarding his age is to be decided by the president after consultation with the chief justice of India and the decision of the president is final.
- He can resign his office by writing to the president.
- He can be removed from his office by the President on the recommendation of the Parliament.
- He vacates his office when he is appointed as a judge of the Supreme Court or when he is transferred to another high court.
Removal of Judges of High Court
- A judge of a high court can be removed from his office by an order of the President.
- The President can issue the removal order only after an address by the Parliament has been presented to him in the same session for such removal.
- The address must be supported by a special majority of each House of Parliament.
- The special majority is a majority of the total membership of that House and majority of not less than two-thirds of the members of that House present and voting.
- The grounds of removal are two i.e. proved misbehaviour or incapacity which implies that a judge of a high court can be removed in the same manner and on the same grounds as a judge of the Supreme Court.
Procedure for removal of judge of High Court
- The Judges Enquiry Act (1968) regulates the procedure relating to the removal of a judge of a high court by the process of impeachment:
- A removal motion signed by 100 members (in the case of Lok Sabha) or 50 members (in the case of Rajya Sabha) is to be given to the Speaker/Chairman.
- The Speaker/Chairman may admit the motion or refuse to admit it.
- If it is admitted, then the Speaker/Chairman is to constitute a three member committee to investigate into the charges.
- The committee should consist of the chief justice or a judge of the Supreme Court, a chief justice of a high court, and a distinguished jurist.
- If the committee finds the judge to be guilty of misbehaviour or suffering from an incapacity, the House can take up the consideration of the motion.
- After the motion is passed by each House of Parliament by special majority, an address is presented to the president for removal of the judge.
- The president passes an order removing the judge.
Immunisation Agenda 2030
Recently, the global agencies like the World Health Organization (WHO) and UNICEFhave set a target of avoiding 50 million vaccine-preventable infections in this decade as part of a new immunisation programme.
Immunisation Agenda 2030
- The Immunisation Agenda 2030 (IA2030) was launched during World Immunisation Week.
- The IA2030 is based on learnings from Global Vaccine Action Plan (GVAP).
- It also aims to address the unmet targets of the GVAP that were initially to be fulfilled as part of the global immunisation strategy of the ‘Decade of vaccines’ (2011–2020).
- It is underpinned by four core principles i.e. it puts people in the centre, is led by countries, implemented through broad partnerships, and driven by data.
Targets of Immunisation Agenda 2030
- It intends to reduce the number of zero-dose children by 50 per cent.
- The zero-dose children are those who have received no vaccines through immunisation programmes.
- The programmes hope to do this by extending immunisation services to 13 million such children.
- These constitute 65 per cent of more than 20 million infants who do not receive a full course of even basic vaccines and miss out on new vaccines.
- IA2030 calls for introducing booster doses for lifelong protection against diphtheria, pertussis and tetanus.
- It also states new approaches to reach unvaccinated children and resolve geographical inequalities.
Benefits of Immunisation Agenda 2030
- The new programme will focus on a ‘bottoms-up’ approach, in contrast to the GVAP that followed a ‘top-down’ one.
- The UN agencies aim to ensure through IA2030 that the benefits of immunisation are shared equitably among and within countries.
- The programme will give priority to populations that are not currently being reached, particularly the most marginalised communities, those living in fragile and conflict-affected settings and mobile populations.
- It will provide a strong foundation for the global immunisation strategy in the decade 2021-2030.
- It will contribute to achieving the UN-mandated sustainable development goals or SDGs, specifically SDG3 which says ensure healthy lives and promote well-being for all at all ages.
China launches first module of new space station
Recently, China has launched a key module of a new permanent space station i.e. the Tianhe module.
Tianhe Module
- It was launched from the Wenchang Space Launch Centre on a Long March-5B rocket.
- China has sent two previous space stations into orbit i.e. the Tiangong-1 and Tiangong-2 were trial stations.
- The new, 66-tonne, multi-module Tiangong station is set to be operational for at least 10 years and Tianhe is the core component of it.
- Tianhe Module is 16.6m long and 4.2m wide.
- It will provide power and propulsion and contains the life support technologiesand living quarters required by visiting astronauts.
- The launch begins the first of 11 missions necessary to complete, supply and crew the station by the end of next year.
- The core module will provide living space for as many as six astronauts during crew changeovers,
- The other two modules, Wentian or “Quest for the Heavens” and Mengtian or “Dreaming of the Heavens” will provide room for conducting scientific experiments including in medicine and the properties of the outer space environment.
China wants to build a new space station
- China hopes to have the new station operational by 2022.
- The only space station currently in orbit is the International Space Station, from which China is excluded.
- China has been a late starter when it comes to space exploration as it was only in 2003 that it sent its first astronaut into orbit, making it the third country to do so, after the Soviet Union and the US.
- The ISS is due to be retired after 2024, which could potentially leave Tiangong as the only space station in Earth's orbit.
Global Forest Goals Report 2021
Recently, the Department of Economic and Social Affairs of the United Nations (UNDESA) has released the Global Forest Goals Report 2021.
- The United Nations Strategic Plan for Forests 2017-2030 was created with a mission to promote sustainable forest management and enhance the contribution of forests and trees to the 2030 Agenda for Sustainable Development.
- The Plan recognizes that in order to create a world in which forests could provide economic, social, environmental and cultural benefits for present and future generations, they will be needed by humanity in the first place.
- It highlighted that the novel coronavirus disease (COVID-19) pandemic has aggravated the challenges faced by countries in managing their forests.
- It is estimated that 252 million people living in forests and savannas currently earn less than US$1.25 per day, which was the World Bank’s poverty line measure through 2015
- The report called for a future course of action that included greater sustainability and a greener and more inclusive economy to tackle the threats of COVID-19, climate change and the biodiversity crisis faced by forests.
- In 2020, nearly 18% of the world’s forests stood in legally established protected areas, compared to just over 14% in 2000.
- The area of protected forests grew worldwide at nearly three million ha per yearbetween 2010 and 2020 (10 million ha/year between 2000 and 2010), with increases in every region.
- Currently, 73% of the world’s forests is under public ownership, 22% is privately owned, and the remainder is categorized as either “unknown” or “other” (where ownership is disputed or in transition).
Global Forest Goals Report
- It is the first evaluation of where the world stands in implementing the United Nations Strategic Plan for Forests 2030.
- It draws upon 52 voluntary national reports and 19 voluntary national contributions, representing 75 per cent of forests in the world.
- It was prepared by the Department of Economic and Social Affairs of the United Nations (UNDESA), through its United Nations Forum on Forests Secretariat (UNFFS).
- It draws upon quantitative and bio-physical global data primarily from the Global Forest Resources Assessment (FRA) 2020 which is produced by the Food and Agriculture Organization (FAO).
- It provides an initial overview of progress towards achieving the six Global Forest Goals and their 26 associated targets as contained within the United Nations Strategic Plan for Forests 2030.
- The first Global Forest Goal in the Plan provides for increasing forest area by three per cent by 2030.
Six Global Forest Goals
- Goal 1: Reverse the loss of forest cover worldwide through sustainable forest management, including protection, restoration, afforestation and reforestation.
- Increase efforts to prevent forest degradation and contribute to the global effort of addressing climate change.
- Goal 2: Enhance forest-based economic, social and environmental benefits, including by improving the livelihoods of forest-dependent people.
- Goal 3: Increase significantly the area of protected forests worldwide and other areas of sustainably managed forests, as well as the proportion of forest products from sustainably managed forests.
- Goal 4: Mobilize significantly increased, new and additional financial resources from all sources for the implementation of sustainable forest management and strengthen scientific and technical cooperation and partnerships.
- Goal 5: Promote governance frameworks to implement sustainable forest management, including through the United Nations forest instrument.
- Enhance the contribution of forests to the 2030 Agenda for Sustainable Development.
- Goal 6: Enhance cooperation, coordination, coherence and synergies on forest-related issues at all levels, including within the United Nations system and across member organizations of the Collaborative Partnership on Forests.
National Conference on Agriculture for Kharif Campaign-2021
Recently, the Union Minister of Agriculture & Farmers Welfare has inaugurated ‘The National Conference on Agriculture for Kharif Campaign-2021’.
- It aims to review and assess the preparedness for management of Kharif crops and ensuring availability of seeds, pesticides, fertilizers, machinery and their prepositioning at Block levels.
- It appreciated the efforts of farmers for the record production for food grains (303.34 million tonnes), which is over 1.96% higher than the previous year's output (297.50 Million Tonnes).
- The pulses and oilseed production are 24.42 & 37.3 million tonnes, respectively.
- The agriculture and allied sectors registered a continuous growth in GDP contribution amid the adversities of COVID-19 pandemic.
- The share of agriculture in GDP increased from 17.8% in 2019-20 to 19.9% in 2020-21 as per Economic Survey 2020-21.
- The shortage of soyabean seeds is pegged at 87,656 tonnes and also the shortfall in maize seeds is estimated at 73,445 tonnes.
Targets announced for Kharif crops in 2021-22
- It announced the setting of higher production targets of food grains from 301.92 to 307 million tonnes for the year 2021-22.
- The higher production targets for pulses and oilseeds are the necessity of the nation to reduce our dependency on import and to achieve the dream of Aatmanirbhar Bharat.
- The production target for rice, the main Kharif cereal crop, has been set higher at 104.3 million tonnes.
- The pulses production target for crop year 2021-22 is set higher at 25 million tonnes, while oilseeds the target is pegged at 37.6 million tonnes.
- The production of coarse cereals is set higher at 51.21 million tonnes for the next season.
- The maize output is targeted higher at 30.9 million tonnes against projected production of 30.16 million tonnes this season.
- Among cash crops, the output of cotton is targetted at 37 million bales of 170 kg each, while that of jute and mesta has been fixed at 10.6 million bales (180 kg each).
- The requirement of urea for Kharif season has been assessed at 177.53 lakh tonnes, higher than this season’s 166.72 lakh tonnes.
Codex Standards for New Spices
Recently, the Codex Committee on Spices and Culinary Herbs (CCSCH) has finalised and recommended quality standards for four spices i.e. cloves, oregano, basil, and ginger.
- The Codex standards for dried / dehydrated forms of cloves, oregano, basil and ginger will join the ranks of the other four standards adopted for dried or dehydrated forms of black/ white/ green pepper, cumin, thyme, and garlic.
- The committee also took up the following new work items:
- To develop Codex standards for small cardamom and turmeric; and
- To develop the first group standard for spices that falls under the class 'dried fruits and berries'.
- The CCSCH is the youngest of the Codex Commodity Committees.
- The Committee is chaired by India and Spices Board India is its Secretariat.
- The committee is mandated to elaborate worldwide, science-based quality standards for spices and culinary herbs, in accordance with the Codex principles of consumer protection and fair trade practices.
Importance of Spices in India
- The higher demand for immunity boosting spices like turmeric has helped the nation in reporting a 19% growth in export of spices and spice products during the first half of 2020.
- The studies show that India produces approximately 3 million tonnes of spices on an annual basis, which are worth around Rp 186 billion (US$ 3 billion).
- According to the Spices Board, India accounts for about 30% of the world’s pepper production, 35% of the world’s ginger production and 90% of turmeric production.
- Among all the states in India, Kerala tops the chart when it comes to the production of spices because the state produces close to 96% of pepper, 53% of cardamom, and 25% of ginger in the country.
- Andhra Pradesh leads the country in the production of chilli and turmeric, with 49% and 57% respectively.
- Rajasthan is the largest producer of coriander, cumin and fenugreek, and the figures stand at 63%, 56% and 87% respectively.
About Codex Committee on Spices and Culinary Herbs (CCSCH)
- It was formed in 2013 with support of more than a hundred countries under Codex Alimentarius Commission (CAC).
- It has been successful in developing harmonised global Codex standards for spices and herbs.
- It has developed and finalized standards for four spices, viz. dried or dehydrated forms of black/ white/ green pepper, cumin, thyme, and garlic.
About Codex Alimentarius Commission (CAC)
- It is an intergovernmental body established in 1963.
- It is constituted jointly by the UN’s Food and Agriculture Organisation (FAO) and the World Health Organisation (WHO), within the framework of the Joint Food Standards Programme.
- It aims to protect the health of consumers and ensure fair practices in the food trade.
- It is the body responsible for all matters regarding the implementation of the Joint FAO/WHO Food Standards Programme.
- The Membership of the Commission is open to all Member Nations and Associate Members of FAO and WHO.
- The Commission meets in regular session once a year alternating between Geneva and Rome.
- The Commission works in the six UN official languages.
Index of Eight Core Sector Industries
Recently, the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) has released Index of Eight Core Industries for the Month of March, 2021.
Key Highlights
- The combined Index of Eight Core Industries stood at 143.1 in March, 2021, which increased by 6.8 (provisional) per cent as compared to the Index of March, 2020.
- Its cumulative growth during April to March, 2020-21 has been (-) 7.0%.
- The final growth rate of Index of Eight Core Industries for December 2020 is revised to 0.4% from its provisional level (-) 1.3%.
- Coal: Coal production (weight: 10.33 per cent) declined by 21.9 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 4.8 per cent during April to March, 2020-21 over corresponding period of the previous year.
- Crude Oil: The Crude Oil production (weight: 8.98 per cent) declined by 3.1 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 5.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
- Natural Gas: The Natural Gas production (weight: 6.88 per cent) increased by 12.3 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 8.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
- Petroleum Refinery Products: The Petroleum Refinery production (weight: 28.04 per cent) declined by 0.7 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 11.2 per cent during April to March, 2020-21 over the corresponding period of previous year.
- Fertilizers: The fertilizers production (weight: 2.63 per cent) declined by 5.0 per cent in March, 2021 over March, 2020.
- Its cumulative index increased by 1.8 per cent during April to March, 2020-21 over the corresponding period of previous year.
- Steel: The steel production (weight: 17.92 per cent) increased by 23.0 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 9.5 per cent during April to March, 2020-21 over the corresponding period of previous year.
- Cement: The cement production (weight: 5.37 per cent) increased by 32.5 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 11.9 per cent during April to March, 2020-21 over the corresponding period of previous year.
- Electricity: The electricity generation (weight: 19.85 per cent) increased by 21.6 per cent in March, 2021 over March, 2020.
- Its cumulative index declined by 0.6 per cent during April to March, 2020-21 over the corresponding period of previous year.
Index of Industrial Production (IIP)
- It is an index of the eight most fundamental industrial sectors of the Indian economy and it maps the volume of production in these industries.
- The industries included are Coal, Natural Gas, Crude Oil, Refinery Products (such as Petrol and Diesel), Fertilisers, Steel, Cement and Electricity.
- The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
- The base year of the ICI has been revised to 2011-12 from 2004-05 in alignment with the new series of IIP.
TRIFED joins hands with The LINK Fund for tribal development
Recently, the TRIFED and The LINK Fund have entered into a Memorandum of Understanding (MoU) for tribal development.
Key Highlights
- The MoU is aimed at employment generation by providing support to tribals for increasing value addition in their produce and products.
- It has called for sustainable livelihoods and value addition for increase in income and employment generation through technological intervention for efficiency in value addition for MFPs.
- Both the organizations will also work together to creating women-centered infrastructure and innovation and entrepreneurship.
- The LINK Fund is excited to commence the intervention working in close coordination with TRIFED’s leadership team and to draw out Detailed Project Implementation Plan, Estimate budgetary estimates for impactful interventions and to mobilize funds etc.
- The aim of MoU is to pooling strengths together and undertakes work that will help in boosting the income and livelihoods of the tribal people.
The Link Fund
- It is a practitioner-led fund headquartered in Geneva, Switzerland.
- It works to end extreme poverty and mitigate the effects of climate change.
- It bridges the gap between the financial and philanthropic worlds, providing an optimal solution both to funding and implementing integrated development programs.
- The Fund addresses basic human needs - food and nutrition security, education, women’s economic empowerment and large-scale infrastructure.
TRIFED
- The Tribal Cooperative Marketing Development Federation of India (TRIFED) came into existence in 1987.
- It is a national-level apex organization functioning under the administrative control of Ministry of Tribal Affairs.
- The ultimate objective of TRIFED is socio-economic development of tribal people in the country by way of marketing development of the tribal products on which the lives of tribals depends heavily.
Next
previous
Latest News
General Studies