Daily Prelims Notes 14 December 2023

Daily Prelims Notes

14 December 2023

Table Of Contents

1. COP28 summit calls for ‘transition away’ from fossil fuels
2. The limitations of CCS and CDR and their grip on future climate
3. A quarter of freshwater fish species risk extinction by climate change: IUCN
4. Unnatural causes claim more than 490 wild elephant lives in five years
5. COP28 text silent on carbon markets
6. New Delhi Declaration’ on artificial intelligence adopted
7. Social Stock Exchange (SSE)
8. Moratorium on e-commerce customs duties
9. Progress on Industry Standards Forum proposed by SEBI

1. COP28 summit calls for ‘transition away’ from fossil fuels

Subject : Environment

Section: Int Conventions

Context:

• COP28 in Dubai UAE adopted the ‘Dubai Consensus’ to transition away from fossil fuels.

Dubai Consensus:

• It calls on Parties [to be] …Transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, to achieve net zero by 2050 in keeping with the science.
• This implies cutting emissions to 43% of 2019 levels by 2030 and 60% by 2035.
• It for the first time mentions methane emission, a non-carbon dioxide greenhouse gas that is more potent, in its heat-trapping effect, than carbon dioxide.
• It does not talk about curbing Natural Gas, designating it as a “transition gas” that could be relied on during countries’ transition to renewable energy.

Carbon Space:

• It refers to the atmosphere’s capacity to hold carbon that will not result in temperatures increasing by 1.5 to 2 degrees C by the end of the century.
• The globe is already 1.1 C hotter than it was in the pre-industrialised level.
• Most of this carbon space has already been taken over by the developed nations in over a century of fossil fuel and greenhouse gas emissions, and developing nations have insisted that what space remains ought to be left for them, while the industrialised western nations must cede space by taking on far more stringent reductions than they have committed to so far.

India’s stand:

• Developing countries accounted for 3% of greenhouse gases emitted historically (1850-2019) compared to the United States (25%) and the European Union (17%).
• India is the third-largest greenhouse gas emitter.
• India at the Glasgow COP in 2021, agreed to a ‘phase-down’ of coal use.
• Nearly 75% of India’s methane emissions are from the agricultural sector. 

Source: The Hindu

2. The limitations of CCS and CDR and their grip on future climate

Subject : Environment

Section: Climate change

What are Carbon Capture and storage (CCS) and Carbon Dioxide Removal (CDR)?

• CCS refers to technologies that can capture carbon dioxide (CO₂) at a source of emissions before it is released into the atmosphere. These sources include the fossil fuel industry (where coal, oil and gas are combusted to generate power) and industrial processes like steel and cement production.
• CDR takes the forms of both natural means like afforestation or reforestation and technologies like direct air capture, where machines mimic trees by absorbing CO₂ from their surroundings and storing it underground.
• CDR technologies: Enhanced rock weathering, where rocks are broken down chemically; the resulting rock particles can remove CO₂ from the atmosphere. Bioenergy with carbon capture and storage (BECCS) captures and stores CO₂ from burning biomass, like wood.

How much CCS and CDR?

• According to the IPCC Sixth Assessment Report (AR6), to have more than a 50% chance of limiting warming to 1.5 degrees C (with no or limited overshoot) assume the world can sequester 5 billion tonnes of CO₂ by 2040. This is more than India emits currently every year.
• There is no pathway to 1.5 degrees C in AR6 that doesn’t use CDR.
• CDR ought to be used to counterbalance hard-to-abate residual emissions.
• the 2023 ‘Land Gap’ report estimated that various governments have proposed to remove CO₂ using around one billion hectares of land.
• Challenges:
  • CDR projects can adversely affect land rights of indigenous communities and biodiversity and compete with other forms of land-use, like agriculture that is crucial for ensuring food security.

Deep Decarbonization Pathways:

• Launched in October 2013 as a joint collaboration between (Institute for Sustainable Development and International Relations) IDDRI and (Sustainable Development Solutions Network) SDSN.
• Its primary objective was to support a positive outcome at COP21, by demonstrating that country-driven deep decarbonization pathways to 2050 can be a relevant instrument to guide national ambition and actions.
• To do so, a group of domestic research teams from 16 countries – all large emitting G20 countries, both developed and emerging – was gathered to elaborate country-driven pathways consistent with the global goal of stabilizing global warming to 2°C.

Source: The Hindu

3. A quarter of freshwater fish species risk extinction by climate change: IUCN

Subject : Environment

Section: Climate change

Context:

• The IUCN Red List assessment highlights the peril facing about a quarter of the world’s freshwater fish species due to climate change.

Details:

• Out of nearly 15,000 species assessed, over 3,000 are at risk of extinction.
• Factors like decreasing water levels, shifting seasons, and rising sea levels are impacting these fish, compounded by pollution, dams, overfishing, disease, and invasive species.
• Examples include the decline of the Atlantic salmon population by 23%, moving it from least concern to near threatened, and large-toothed Lake Turkana robber (Brycinus ferox).
  • Climate change disrupts their life cycles, affecting development, prey availability, and habitats.
  • Additionally, threats to species like the green turtle, big-leaf mahogany, and Saiga antelope were noted, largely attributed to climate-related issues,Illegal logging and trade, habitat loss, incidental bycatch in industrial and artisanal fishing, and human activities.
• Conservation efforts:
  • The scimitar-horned oryx and Saiga antelope (found in Kazakhstan, Uzbekistan, Russia and Mongolia) are showing population recoveries due to conservation efforts.

Source: Down To Earth

4. Unnatural causes claim more than 490 wild elephant lives in five years

Subject : Environment

Section: Species in news

Context:

• A capacity-building workshop on ‘Minimising elephant mortalities on railway track’ for the officials of Indian Railways is being organised at the Dehradun-based Wildlife Institute of India (WII).

Elephant population in India:

• India has nearly 30,000 wild elephants.
  • Karnataka had the highest number of wild elephants at 6,049, followed by Assam at 5,719, Kerala at 5,706, and Tamil Nadu at 2,761. 32 elephant reserves cover around 76,508-sq-km area in 14 States.

• Elephant in captivity:
  • India had 2,589 elephants in private custody, excluding the zoological parks.
  • 902 captive elephants are in Assam, followed by Kerala -518, Karnataka – 146, TamilNadu – 135, Rajasthan- 113, Arunachal Pradesh – 109, West Bengal- 100, Tripura – 64, Nagaland – 15 and Meghalaya – eight.
• Elephant death:
  • India has lost 494 elephants to train-hit incidents, electrocution, poaching, and poisoning over the past five years.
  • India lost more than 57 elephants per year due to electrocution and more than 12 elephants per year due to collisions with trains over the past five years.
  • Assam had the highest number of elephant deaths due to train hits with 62 deaths, followed by West Bengal at 57, and Odisha at 27.

Loss of herd dynamics:

• Loss of older elephants disrupts herd dynamics and increases the risk of human-elephant conflict, as younger elephants are more likely to stray into human-dominated areas.

Measures taken:

• 150 elephant corridors across 15 elephant ranges in the country have been ground-validated.
• Mitigate the impact of power transmission lines and other power infrastructure on elephants and other wildlife.
• Permanent and temporary speed restrictions have been imposed in identified elephant corridors and habitats.

Source: TH BusinessLine

5. COP28 text silent on carbon markets

Subject : Environment

Section: Climate change

System of Carbon Credits:

• An entity that does an activity that reduces emissions of greenhouse gases (or removals from the atmosphere) is given a ‘credit’ that can be bought by another entity that must reduce emissions — either by law or voluntarily. This way, money flows into climate action.
• COP28 climate talks is silent on carbon credits because the parties could not come to an agreement on Art­icle 6.2 (bilateral trading) and Article 6.4 (carbon markets) of the Paris Agreement.
  • There is a reference to Article 6 .1 (vol­untary cooperation) and Article 6.8 (non market approaches, such as technology transfer), but nothing on Articles 6.2 and 6.4, which are the operative provisions of the Article.
• A vibrant system for trading in carbon credits (or carbon offsets) is a key mechanism for fin­ancing climate action projects.
• The World Bank has estim­ated that carbon credits could reduce the cost of countries’ cli­mate action commitments (Nationally Determined Contributions or NDCs) by about $250 billion by 2030.

Internationally Transferred Mitigation Outcome (ITMO):

• Article 6.2 of the Paris Agreement allows countries to trade in carbon credits with one another through bilateral or multilateral deals. These traded credits are called Internation­ally Transferred Mitigation (ITMO).
• The issue is whether non­govern­ment entities, including the private sector, can buy offsets from a country or not.
  • For example, can the Carbon Offsetting and Reduction Scheme for International Avi­ation (CORSIA), or Google, buy carbon credits from, say, the Indian govern­ment, to offset its own obliga­tions? Such a deal comes under the head Other International Mitigation Purposes (OIMP). ITMOs can be transferred for NDC compliance or for OIMP.
• There are some technical issues such as author­isation of credits and interoper­ability of registries.
• Article 6.4  of Paris Agreement is even more com­plicated, it deals with a market mechanism for trading in carbon credits. Rules need to be set up for measuring baselines and recognising addi­tionality.

CORSIA:

• CORSIA is the first global market-based measure for any sector and represents a cooperative approach that moves away from a “patchwork” of national or regional regulatory initiatives. It offers a harmonized way to reduce emissions from international aviation, minimizing market distortion, while respecting the special circumstances and respective capabilities of ICAO Member States.
• CORSIA complements the other elements of the basket of measures by offsetting the amount of CO₂emissions that cannot be reduced through the use of technological improvements, operational improvements, and sustainable aviation fuels with emissions units from the carbon market.
• CORSIA is applicable only to flights originating from one country to another.

LTAG:

• 41^stICAO Assembly adopted LTAG for international aviation of net-zero carbon emissions by 2050 in support of the UNFCCC Paris Agreement’s temperature goal.
• The LTAG does not attribute specific obligations or commitments in the form of emissions reduction goals to individual States. Instead, it recognizes each State’s special circumstances and respective capabilities e.g., the level of development, maturity of aviation markets.

6. New Delhi Declaration’ on artificial intelligence adopted

Subject : IR

Section: Int Groupings

Context: Representatives from 28 countries and the European Union convened to adopt the ‘New Delhi Declaration’ at the Global Partnership on Artificial Intelligence (GPAI) summit.

Hosting the summit, India is set to chair the GPAI grouping in 2024.

Key points of ‘New Delhi Declaration’

The New Delhi declaration has attempted to find a balance between innovation and the risks associated with AI systems. While it is largely upbeat about the economic benefits that AI can bring, it also flags issues around fairness, privacy, and intellectual property rights that will have to be taken into consideration.

The declaration said that a global framework for use of AI should be rooted in democratic values and human rights; safeguarding dignity and well-being; ensuring personal data protection; the protection of applicable intellectual property rights, privacy, and security; fostering innovation; and promoting trustworthy, responsible, sustainable, and human-centred use of AI.

Commitment to AI Principles: The declaration reaffirms the commitment to responsible stewardship of trustworthy AI, emphasizing democratic values, human rights, and a human-centered approach.

Focus on Trustworthy AI: GPAI aims to promote the trustworthy development, deployment, and use of AI across member countries.

GPAI’s Inclusive Approach and Global Impact

Inclusivity and Global South Participation: The declaration emphasizes the inclusion of countries in the Global South, aiming to make AI benefits universally accessible.

GPAI members also promoted equitable access to critical resources for AI innovation including computing, high-quality diverse datasets, algorithms, software, testbeds, and other AI-relevant resources.

It said that the GPAI will pursue a diverse membership, with a particular focus on low- and middle-income countries to ensure a broad range of expertise, national and regional views, and experiences based on shared values.

Japan’s Role as Outgoing Chair: The previous summit, chaired by Japan, set the stage for expanding the GPAI’s reach and inclusivity.

Addressing Modern Challenges: The declaration acknowledges the need to address issues like misinformation, unemployment, and threats to human rights in the AI context.

Collaborative Efforts and Future Goals

Pooling Resources for AI Solutions: Jean-Noël Barrot, France’s Minister for Digital Transition and Telecommunications, highlighted the importance of leveraging OECD resources for AI development and governance.

Encouraging Broader Participation: Japan and India emphasized the importance of including more developing countries in GPAI.

Senegal’s Involvement: Senegal has joined the GPAI steering committee, marking a significant step towards greater inclusivity.

India’s Contribution to AI in Agriculture

Agriculture as a Priority: The declaration also agreed to support AI innovation in the agriculture sector as a new “thematic priority”. The declaration specifically acknowledges India’s role in bringing agriculture into the AI agenda.

Support for Sustainable Agriculture: The commitment to using AI innovation in sustainable agriculture is a new thematic priority for GPAI.

How does the New Delhi declaration contrast with the Bletchley declaration?

• While the GPAI New Delhi declaration addresses the need to tackle AI-related risks, it largely supports innovation in the technology in various sectors, including agriculture and healthcare. The essence of the declaration can be summed up as follows: AI is inherently good and is a catalyst for economic growth, but some harms need to be mitigated along the way.
• By contrast, the declaration that was signed at the UK AI Safety Summit last month put security and safety risks related to AI in the centre of the discussions. At the Bletchley Park meeting, 28 major countries including the United States, China, Japan, the United Kingdom, France, and India, and the European Union agreed to sign on a declaration saying global action is needed to tackle the potential risks of AI.
• The declaration noted the “potential for serious, even catastrophic, harm, either deliberate or unintentional, stemming from the most significant capabilities of these AI models”, as well as risks beyond frontier AI, including those of bias and privacy. “Frontier AI” is defined as highly capable foundation generative AI models that could possess dangerous capabilities that can pose severe risks to public safety.

7. Social Stock Exchange (SSE)

Subject : Economy

Section: Capital Market

Unnati, specifically the SGBS Unnati Foundation (SUF), is mentioned as the first entity to list on the SSE.

1. Listing on NSE Social Stock Exchange (SSE):
   • Unnati became the first entity to be listed on the NSE Social Stock Exchange.
2. Nature of the Entity:
   • SGBS Unnati Foundation (SUF) is described as a not-for-profit organization (NPO) incorporated in 2011.
3. Training and Fundraising:
   • SUF has a focus on training youth and had trained over 45,000 youth.
   • The entity raised ₹1.8 crore from various sources, including Zerodha, Nabard, etc.
4. Zero Coupon Zero Principal (ZCZP) Instruments:
   • Upon listing, Zero Coupon Zero Principal (ZCZP) instruments with a face value of ₹1 each were credited into the demat accounts of the respective donors.
   • These instruments are not traded but are held in the donors’ accounts, and their value becomes zero at the end of one year when SUF’s project is completed.
5. Purpose of Fundraise:
   • The funds raised were intended to train 10,000 youth across states and assist them in finding jobs.
6. Transparency and Monitoring:
   • Listing on the stock exchange allows for checks and balances, including disclosing the purpose for raising funds and providing a timeline for their utilization.
   • Annual impact reports audited by social audit firms contribute to transparency.
7. Credibility for Investors:
   • Listing enhances credibility and comfort for investors as they can monitor how the funds are utilized.
8. SEBI Board Approval:
   • The SEBI board recently approved changes, including halving the minimum issue size of ZCZPs by NPOs on SSEs to Rs 50 lakh and reducing the minimum application size to ₹10,000 to enable wider participation.
9. Future Listings:
   • There are 38 more NPOs registered with the NSE SSE, suggesting the potential for more listings in the coming months.
10. Impact Investing and Social Change:
    • SSEs are described as representing a unique approach to impact investing, creating a bridge between donors and NPOs dedicated to driving social change.
    • SSEs offer advantages such as transparency, trust, efficiency, and cost savings.

It’s important to note that the impact of this development on the Indian economy depends on the scale and success of SSEs in promoting impact investing and supporting social enterprises and voluntary organizations. The inclusion of more NPOs and changes in regulatory requirements, as approved by the SEBI board, could influence the landscape of impact investing in India.

About SGBS Unnati Foundation: SGBS Unnati Foundation is a not-for-profit organization formed in November 2011. It focuses on providing vocational training for underprivileged and unemployed youth, particularly in the age group of 18 to 25 years.

The funds raised through the ZCZP bonds issued by SGBS Unnati Foundation are aimed at training up to 10,000 graduating youth from government colleges in various states to help them secure employment.

The training program includes 165 hours of training for each youth, comprising 90 hours of classroom learning over 30 days and 75 hours of self-learning content on a mobile application. The cost per head for training is ₹2,000 per youth.

About Social Stock Exchanges (SSEs) –

SSEs are trading platforms designed to facilitate capital raising for social businesses and non-profits by connecting them with ethical investors interested in organizations with both corporate and social missions.

The establishment of SSEs aims to provide a unified and coherent framework for funding, utilization, impact measurement, disclosure, and reporting in the social development sector.

1. Purpose of SSEs:
   • SSEs serve as platforms for social enterprises and voluntary organizations to raise capital through various financial instruments, including debt, equity, mutual funds, and specific instruments like Zero Coupon Zero Principal (ZCZP) bonds.
2. Coherence in Funding:
   • SSEs seek to bring coherence to the diverse funding sources for the social development sector, including corporate social responsibility (CSR), philanthropy, government funding, and retail charity.
3. Uniform Frameworks:
   • SSEs aim to establish uniform frameworks for funding, impact creation, measurement, disclosures, and reporting across different social organizations.
4. Initiative by the Indian Government:
   • The Indian government announced plans to set up an SSE in 2019 to enhance the ability of social enterprises to raise capital.
5. Key Building Blocks:
   • The SSE consists of three key building blocks: the demand-side ecosystem (social organizations), the supply-side ecosystem (investors), and the infrastructure (the SSE and its intermediaries).
6. Government’s Role:
   • The government plays a crucial role as the market maker and influencer in the SSE ecosystem.
7. Regulation by SEBI:
   • The Securities and Exchange Board of India (SEBI) serves as the SSE regulator, overseeing the functioning of SSEs and providing guidance.
8. Approved Financial Instruments:
   • SSEs offer various financial instruments approved by SEBI, including mutual funds, social impact funds (with grant-in/grant-out models), and ZCZP bonds.

ZCZP Bonds

A Zero Coupon Zero Principal (ZCZP) bond is a financial instrument that does not provide any periodic interest payments, and the principal amount is not repaid at maturity.

These bonds are issued with a face value, and they mature when a specified project is completed or after a predetermined period, typically 12 months from the date of allotment. They are issued to non-profit organizations (NPOs) for social development projects, promising a social return on investment rather than financial returns.

1. Interest Structure:
   • ZCZP bonds do not provide any interest income to investors. Instead, they are structured as zero-coupon bonds, meaning that investors do not receive periodic interest payments.
2. Maturity Conditions:
   • The bonds mature when the project for which they are raised is completed or after a fixed period, such as 12 months from the date of allotment.
3. Listing on Social Stock Exchanges:
   • ZCZP bonds issued by non-profit organizations are listed on social stock exchanges (SSEs). While they are not available for trading in the secondary market, they can be transferred to legal heirs since they are issued in dematerialized form.

8. Moratorium on e-commerce customs duties

Subject : Economy

Section: External Sector

Background:

• The WTO is addressing the extension of the moratorium on e-commerce customs duties.
• The moratorium prevents countries from imposing customs duties on electronic transmissions.
• Introduced in 1998, it faces potential expiration at the Ministerial Conference in February 2024.

Divergent Views:

• US Position:
  • Supports extending the moratorium.
  • Emphasizes the importance of advancing the WTO work program on e-commerce.
  • Aims to maintain the moratorium to allow robust exploration within the work program.
• Developing Nations’ Position:
  • Led by India, Indonesia, Sri Lanka, and South Africa.
  • Favors ending the moratorium.
  • Believes it is crucial to preserve policy space for digital advancement, import regulation, and revenue generation through customs duties.

Previous Extension:

• Extended previously at WTO MC 12 with arguments favoring post-COVID recovery.
• Several members, including the US, the UK, and the EU, supported the extension.

Economic Impact:

• A UNCTAD study reveals a $55 billion loss in customs revenue in 2020 due to the moratorium.

Developing Nations’ Concerns:

• Argue that the moratorium disproportionately favors developed nations.
• Digital trade is dominated by industries in wealthier countries.

WTO Director-General’s Perspective:

• Ngozi Okonjo-Iweala emphasizes the need for clarity on the moratorium.
• Members consider reaching an agreement on this matter vital in the lead-up to MC13.

Future Outlook:

• Ongoing discussions highlight the evolving dynamics and relevance of digital economy and trade issues on the global stage.

E-transmission Moratorium:

• Implemented since 1998, members agreed not to impose customs duties on electronic transmissions.
• Periodically extended at successive Ministerial Conferences (MC).
• Covers digitizable products like photographic films, cinematographic films, printed matter, music, media, software, and video games.
• Emerged from the Declaration on Global Electronic Commerce at the Second Ministerial Conference in 1998.
• Work program established to examine global e-commerce-related issues comprehensively.

India’s Stance:

• Opposition to Extension:
  • India opposes the continuation of the moratorium, stressing its adverse impact on developing nations.
  • Seeks an end to the moratorium to preserve policy space for digital advancement, import regulation, and revenue generation.
• Work Program Intensification:
  • Calls for an intensified work program on the e-commerce sector at the WTO.
  • Advocates discussions in various councils like Trade in Goods, Trade in Services, TRIPS, and Trade and Development.

Challenges and Concerns:

• Tariff Revenue Loss:
  • India experiences a surge in imports of electronic transmissions.
  • Potential tariff revenue loss estimated at USD 10 billion annually for developing countries.
• Impact on Industrialization:
  • Lapse of the moratorium affects industrialization and the use of digital technologies like 3D printing.
  • Limits governments’ ability to generate additional tariff revenues.

Way Forward:

• Preserving Flexibility:
  • Developing countries need flexibility to implement policies for digital catch-up.
  • Emphasizes improving domestic physical and digital infrastructure.
• Regulating Luxury Imports:
  • Urges regulating luxury imports of movies, music, and video games.
  • Removal of the moratorium provides policy space for governments in this regard.

World Trade Organisation (WTO):

• Intergovernmental organization regulating and facilitating international trade.
• Used by governments to establish, revise, and enforce rules governing global trade.
• Officially started operations on January 1, 1995.
• Established under the 1994 Marrakesh Agreement, replacing the General Agreement on Tariffs and Trade (GATT) from 1948.
• World’s largest international economic organization.
• 164-member states, representing over 98% of global trade and GDP.
• Located in Geneva, Switzerland.
• Ministerial Conference:
  • Top decision-making body.
  • Composed of all member states.
  • Typically convenes biennially, with an emphasis on consensus in decision-making.
• General Council:
  • Handles day-to-day functions.
  • Includes representatives from all member states.

India’s Participation:

• India is a founding member since January 1, 1995.
• Also, a member of GATT since July 8, 1948.

9. Progress on Industry Standards Forum proposed by SEBI

Subject : Economy

Section: Capital Market

1. Forum Composition:
   • Comprising apex industry chambers of CII, FICCI, and Assocham.
2. Chairman’s Statement:
   • Chairman KV Kamath announced significant progress in establishing new standards.
   • Emphasis on compliance with SEBI regulations.
3. Deliberations and Consultations:
   • Extensive deliberations ongoing with industry representatives in consultation with SEBI.
4. Upcoming Standards:
   • ESG Disclosures:
     • Precise compliance standards for SEBI-mandated ESG disclosures under Business Responsibility & Sustainability Reporting (BRSR) Core framework.
     • Applicable assurance requirements.
   • Rumour Verification:
     • Developing standards for compliance with the recently introduced requirement of verification of rumors by listed entities.

5. SEBI Regulations:
   • Focus on recently amended provisions of SEBI Listing Obligations and Disclosure Requirement (LODR) Regulations.
6. Future Agenda:
   • Post finalization of the first set of standards, the Forum plans to address disclosure requirements under Regulations 30 and 30A of the LODR Regulations.

About Industry Standards Forum:

1. Objective:
   • SEBI (Securities and Exchange Board of India) aims to facilitate capital formation and improve the ease of doing business.
2. Formation of Industry Standards Forum:
   • SEBI proposes the establishment of an Industry Standards Forum.
   • The forum will be formed by Industry Associations and chaired by a leader from the industry.
   • It will operate under the auspices of the stock exchanges.
3. Pilot Initiatives:
   • The industry associations express interest in undertaking more than one pilot initiative.
4. Priority Areas for Initial Focus:
   • The following areas have been identified as priority areas for the initial phase:
     • (a) Rumour Verification Requirements
     • (b) Disclosure Requirements under Regulations 30 and 30A of LODR Regulations
     • (c) BRSR Core/ESG Assurance Requirements
     • (d) Structured Digital Database Requirements under PIT Regulations

5. Timeline:
   • Industry associations propose a timeline of three to four months for designing standards to effectively implement regulations.
6. Forum’s Role:
   • The Industry Standards Forum will be responsible for formulating standards to implement specific regulations and circulars.
7. Detailed Standards:
   • Standards will be designed at a detailed level to demonstrate compliance with the specified regulations and circulars.
8. Regulatory Compliance Focus:
   • The initiative aligns with SEBI’s commitment to promoting regulatory compliance and streamlining business operations in the financial markets.
9. Capital Market Efficiency:
   • The overall objective is to enhance capital market efficiency and foster a conducive environment for businesses in India.

SEBI Listing Obligations and Disclosure Requirement (LODR) Regulations

• SEBI Listing Obligations and Disclosure Requirement (LODR) Regulations are guidelines and obligations imposed by the Securities and Exchange Board of India (SEBI) on listed companies.
• The regulations aim to ensure transparency, provide material information to investors, and maintain the integrity and efficiency of the securities market.
• Applicable to all companies whose securities are listed on recognized stock exchanges.
• Mandates specific disclosure requirements related to financial performance, shareholding patterns, corporate governance, and other material events.

Regulation 30 and 30A: Regulation 30: Deals with disclosure of events or information that may have a bearing on the company’s performance or share prices. Regulation 30A: Pertains to disclosures of material events by listed entities.

Rumour Verification Requirements: SEBI has proposed the formation of an Industry Standards Forum to address Rumour Verification requirements under these regulations.

BRSR Core/ESG Assurance Requirements: BRSR (Business Responsibility and Sustainability Reporting) Core and ESG (Environmental, Social, and Governance) Assurance Requirements are part of the disclosure framework.

Structured Digital Database Requirements under PIT Regulations: Deals with requirements related to a Structured Digital Database under the Prevention of Insider Trading (PIT) Regulations.

Securities and Exchange Board of India (SEBI):

SEBI is a statutory body established in 1992 under the Securities and Exchange Board of India Act, 1992. SEBI’s primary functions include protecting the interests of investors in securities and promoting and regulating the securities market. The headquarters of SEBI is located in Mumbai.

Before SEBI, the regulatory authority was the Controller of Capital Issues, operating under the Capital Issues (Control) Act, 1947. In 1988, SEBI was formed as the regulatory body for capital markets in India through a government resolution.

Initially, SEBI was a non-statutory body without statutory powers. It later gained autonomy and statutory powers with the enactment of the SEBI Act in 1992. The SEBI Board includes a Chairman and several other whole-time and part-time members. SEBI can appoint committees as needed to address specific issues.