Daily Prelims Notes 15 November 2022

November 15, 2022
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

15 November 2022

Table Of Contents

1. SEBI proposes to half disclosure time

Subject: Economy

Context:

Securities and Exchange Board of India (Sebi) has amended NCS (Issue and Listing of Non-Convertible Securities) Regulations and in another notification, notified rules reducing the minimum holding requirement of Real Estate Investment Trust (REITs)

Details:

No person would act as an online bond platform provider without obtaining registration certificate as a stock broker from Sebi.
A person acting as an online bond platform provider without registration certificate can continue to do so for a period of three months.
- The move will also enhance the confidence among investors, particularly non-institutional investors, as the platforms would be provided by Sebi-regulated intermediaries.
Another notification reduced the minimum holding requirement of Real Estate Investment Trust (REITs) units by sponsors to 15 per cent from 25 per cent at present.
- The sponsor(s) and sponsor group(s) shall collectively hold a minimum of 15 percent of the total units of the REIT for a period of at least three years from the date of listing of such units pursuant to initial offer on a post-issue basis.
In another notification, the regulator has discontinued a separate regulatory framework for unlisted Infrastructure Investment Trust (InvIT).

Concept:

Online bond platform

Sebi has defined online bond platform as any electronic system, other than a recognised stock exchange or an electronic book provider platform, on which the debt securities which are listed or proposed to be listed, are offered and transacted.
Further, an online bond platform provider means any person operating or providing such a platform.
Online Bond Platform Providers (OBPPs) would be companies incorporated in India and they should register themselves as stock brokers in the debt segment of the stock exchange
OBPPs cannot offer products or services on its platform except listed debt securities and debt securities proposed to be listed through a public offering.
After obtaining registration as a stock broker in the debt segment of a stock exchange, an entity would have to apply to the bourse ( stock market ) to act as an OBPP.
In its application, the entity will have to ensure that roles and obligations, technology, operating framework — access and participation, Know Your Client (KYC) for on-boarding investors and sellers and risk profiling of investors — are complied with.

Debt securities vs equity:

Debt securities are financial assets that entitle their owners to a stream of interest payments. Unlike equity securities, debt securities require the borrower to repay the principal borrowed.
Equity securities indicate ownership in the company whereas debt securities indicate a loan to the company.
Equity securities do not have a maturity date whereas debt securities typically have a maturity date.
Equity securities have variable returns in the form of dividends and capital gains whereas debt securities have a predefined return in the form of interest payments.
- The interest rate for a debt security will depend on the perceived creditworthiness of the borrower.
Both securities are issued at face value and trade at market value, which may be higher or lower than the face value.
Equity shareholders are entitled to voting rights whereas debt securities do not hold such rights.
Treasury bills, commercial paper, bonds such as government bonds, corporate bonds, municipal bonds etc. are common types of debt security. On the other hand, common stocks, common shares, preferred stock are examples of equity securities.

2. Permacrisis

Subject: Economy

Context:

The Collins Dictionary’s word of the year for 2022 is “permacrisis”.

Details:

In April 2021, policy analysts in Europe saw it as defining the era in which we live.

Concept:

Permacrisis, which became Britain’s word of the year for 2022, is a term that describes the extended period of instability and insecurity.
According to –David Shariatmadari –
- “Permacrisis” is a term that perfectly embodies the dizzying sense of lurching from one unprecedented event to another, as we wonder bleakly what new horrors might be around the corner.”
‘Permacrisis’ is a word that describes living in an age of continued upheaval;
It became a commonly used word in Britain, reflecting the instability caused by Brexit, COVID-19 pandemic, extreme weather conditions, war in Ukraine, political instability in the UK and the cost of living crisis.
Morin uses the word “polycrisis” to describe this situation——accumulation of problems the world currently faces – from conflict and the climate crisis to the pandemic and rising inflation.
The shift from “polycrisis” to “permacrisis” implies that we now see our crises as situations that can only be managed, not resolved. Indeed, “permacrisis” suggests that every decision to accelerate a difficult situation in order to come out on the other side of it risks something far worse.
This word tops the list of 10 words that represent 2022.Other vocabularies included in the Collins’s annual compilation of 10 words that represent our times are:
- Carolean: The Latin form of the name Charles, signifying the current British monarch’s reign
- Kyiv: Capital of Ukraine. Kyiv is the preferred variant to the Russian spelling of Kiev. Its usage signifies Britain’s support for Ukraine amid the Russian invasion.
- Lawfare: Strategic use of legal proceedings to intimidate or thwart a rival
- Partygate: A political scandal in Britain that involved organizing social gatherings in government offices during 2020 and 2021.
- Quiet Quitting: The practice of not doing additional works that are not mentioned in the contract.
- Splooting: The act of lying flat on the stomach with legs stretched out.
- Sportswashing: Act of sponsoring or promoting sporting events to improve an adversely affected reputation or to distract the public’s attention from a controversy.
- Vibe shift: A notable change in the current cultural atmosphere or trend.

Warm bank: A heated building for people who cannot afford to heat their own homes because of high energy prices.

3. Crypto’s Lehman Brothers moment

Subject: Economy

Context:

FTX, the world’s second biggest crypto exchange, went bankrupt, affecting an estimated 10 lakh-plus people who were barred from withdrawing funds.

Details:

The FTX collapse shook investors’ confidence and prompted further selloff in cryptocurrencies.
It can be called the crypto industry’s Lehman Brothers moment – referring to the bankruptcy of the investment bank that precipitated the 2008 global financial crisis.

Cause of the crisis?

FTX had extended loans to Alameda (another trading firm of the FTX’s founder) using money that customers had deposited on the exchange and a significant part of Alameda’s assets were in the form of a cryptocurrency called FTT – a token that FTX issued indefinitely according to a report.
- Binance – the world’s largest crypto exchange firm’s announcement of selling FTT tokens and consequent investors sell off due the above revelation led to the token crashing 78% in value in a single day.
- FTX lacked the money to handle so many withdrawals and paused the ability for customers to pull their own money out.

Concept:

A cryptocurrency exchange, or a digital currency exchange (DCE)

Like stock exchanges, crypto traders can buy, sell, and convert cryptocurrencies on crypto exchanges.
A cryptocurrency exchange, or a digital currency exchange (DCE), is a business that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies.
Working:
- Customers buy or sell digital currency from digital currency exchanges, who transfer the digital currency into or out of the customer’s digital currency providers (DCP) account.
- Some exchanges are subsidiaries of DCP, but many are legally independent businesses
- The exchanges can send cryptocurrency to a user’s personal cryptocurrency wallet. Some can convert digital currency balances into anonymous prepaid cards which can be used to withdraw funds from ATMs worldwide while other digital currencies are backed by real-world commodities such as gold.
There are currently three types of cryptocurrency exchanges—centralised exchanges (CEXs), decentralised exchanges (DEX) and hybrid exchanges (HEX).
- Example- CEXs such as WazirX, Binance, Coinbase, among others. Some popular DEXs– Uniswap, Pancakeswap, Compound etc..
Centralised exchanges are the most common types of cryptocurrency exchanges.
- A central entity governs them, typically the owner of the exchange.
- In CEX, every order is recorded and validated by the company to ensure security and correctness.
- These exchanges usually offer both crypto-to-crypto trading and use of funds via your bank account or credit card to trade cryptos.
- Customer support is one of the important features that most CEXs offer.
- Funds remain in a wallet managed by the CEX and the signup process might involve a know-your-customer (KYC) process .
Decentralised exchanges –A decentralised exchange as the name suggests is truly decentralised.
- This means there is no central oversight or no company or institution governing these exchanges.
- The trades on DEXs are automated and executed via smart contracts and decentralised applications based on certain predefined metrics. Most DEXs currently operate on Ethereum blockchain.
- No KYC is required and with no customer support to fall back on for help, DEXs might prove more useful for experienced traders than novices.
Hybrid exchanges-In DEX, users have complete control over funds–they can either choose to keep a wallet or trade via smart contracts.
- A hybrid crypto exchange is a platform that provides users with access to their private keys and aims to solve the scalability issues of decentralised exchanges.
- One of the primary goals of HEXs was also to address the DEXs high trading fees. In HEX trading, there are no taker fees and gas fees.

CEX vs DEX vs HEX at a glance

Ease of use: CEXs and HEXs score over DEXs in terms of ease of access and operations.
Custody of funds: one has absolute control over your funds in DEX and HEX.
Transaction speed: CEXs offer the fastest processing speeds followed by HEXs.
Security: DEXs are hosted on decentralised servers which makes them less vulnerable to hacks. HEXs also provide benefits of decentralisation that CEXs lack.
Legal safeguards: CEXs need to abide by the regulations of the country they are located in.
Privacy: KYC that includes providing your identity proof is mandatory for most CEXs without which deposit/withdrawal of funds is not allowed.

Liquidity: CEXs currently have the highest liquidity.

4. What explains rebound in credit growth

Subject: Economy

Context:

With credit growth outpacing deposit growth, credit-deposit ratio has been on the rise.

Details:

Credit growth to agriculture and allied activities, Industry–large industry and micro-small industries, Services sector, personal loans –witnessed a rise.

What does the above trend indicate?

The credit-deposit ratio has been on the rise– reached 73.5% in June 2022 compared to 70.5% a year ago signaling the revival in economic activity and higher investment levels.

Why rise-despite rise in cost of borrowing?--rise in the interest rates on the rise

The Marginal Efficiency of capital (MEC) is high-MEC is the expected rate of return on capital investment or capital asset, and is a key determinant of investment demand.
- The marginal efficiency of capital displays the expected rate of return on investment, at a particular given time. Given, reduced consumption demand and inflation will cause reduction in marginal efficiency of capital and thus, the investment demand will decrease causing the growth to slow down.
The pick-up in credit support comes despite the RBI’s tight monetary policy approach. The central bank has raised the repo rate leading to a rise in the Marginal Cost of Funds Based Lending Rate (MCLR).
- MCLR, a benchmark interest rate, is the minimum fending rate below which a bank is not allowed to lend.

Concept:

Credit Deposit Ratio

It is the ratio of how much a bank lends out of the deposits it has mobilised.
It indicates how much of a bank’s core funds are being used for lending, the main banking activity.
To calculate the loan-to-deposit ratio, divide a bank’s total amount of loans by the total amount of deposits for the same period.
The regulator (RBI) does not stipulate a minimum or maximum level for the ratio. But, a very low ratio indicates banks are not making full use of their resources. And if the ratio is above a certain level, it indicates a pressure on resources.
Typically, the ideal loan-to-deposit ratio is 80% to 90%.
A loan-to-deposit ratio of 100 percent means a bank loaned one dollar to customers for every dollar received in deposits it received.
A credit-deposit ratio of over 70 percent indicates pressure on resources as they have to set aside funds to maintain a cash reserve ratio of 4.5 per cent and a statutory liquidity ratio of 23 per cent. Under such a scenario Banks can lend out of their capital, but it is not considered prudent to do so.
The ratio gives the first indication of the health of a bank.
- A very high ratio is considered alarming because, in addition to indicating pressure on resources, it may also hint at capital adequacy issues, forcing banks to raise more capital.
- Moreover, the balance sheet would also be unhealthy with asset-liability mismatches.
- The loan-to-deposit ratio is used to assess a bank’s liquidity by comparing a bank’s total loans to its total deposits for the same period.
- LDR helps to show how well a bank is attracting and retaining customers.
- The LDR can help investors determine if a bank is managed properly. If the bank isn’t increasing its deposits or its deposits are shrinking, the bank will have less money to lend.

5. Projects to track small fishing vessels along India’s coast makes progress

Subject: Government Schemes

Context-

A delayed project to install transponders on small fishing vessels, under 20 metres in length, as part of coastal security measures instituted post 26/11 Mumbai attacks is now making progress, with a project underway in Tamil Nadu.

About the transponders-

There are close to three lakh registered fishing vessels of which around 2.5 lakh are under 20 metres.
Trials were conducted in association with the Indian Space Research Organisation on one of their communication satellites last year along the coasts of Gujarat and Tamil Nadu.
The process of installing transponders on sub-20 metre boats commenced with a pilot project in Tamil Nadu for 5,000 vessels is underway.
For vessels under 20 metres, the process has been delayed for several reasons.
The decision was taken by the National Committee on Strengthening Maritime and Coastal Security, headed by the Cabinet Secretary, set up to look into issues related to coastal security.
The Vehicle Management System (VMS) has advanced features and enables two-way communication.

Measures taken to enhance the security of coastal areas-

An Automatic Identification System (AIS) was made compulsory for all vessels above 20 metres after the 2008 terrorist attacks in Mumbai.
Verification and monitoring of a large number of fishing vessels in India has been greatly eased by the creation of the online ReALCraft (Registration and Licensing of Fishing Craft).
This information is available to the Indian Navy and Coast Guard.
Issuance of biometric identity cards to the majority of fishermen
Composite card readers to the maritime security agencies to enable biometric verification of the identity of fishing vessel crews at sea.
Maritime Domain Awareness (MDA) on the high seas
- The Quad grouping, comprising of India, Australia, Japan and U.S., at the Tokyo summit (2022) announced an ambitious Indo-Pacific Maritime Domain Awareness (IPMDA) initiative to track “dark shipping” and build a “faster, wider, and more accurate maritime picture of near-real-time activities in partners’ waters” integrating three critical regions in the Indo-Pacific – the Pacific Islands, Southeast Asia, and Indian Ocean Region (IOR).
- “Dark ships” are vessels with their Automatic Identification System (AIS) – a transponder system – switched off so as not to be detectable.

Other initiatives to increase coastal security in India-

Specialised marine police
Strengthening of the ICG
Creating fishermen watch groups
Installing vessel traffic management systems in major ports
Setting up Joint operation centres (JOCs)
Creating an apex body for the management of maritime affairs
National Investigation Agency, was set up in 2009 to deal with terrorist offences.
National Security Guard have been created to ensure rapid response to terror attacks.
The National Intelligence Grid (NATGRID) has been constituted to create an appropriate database of security-related information.
A three-tier security grid was installed with the Indian Navy, the coast guard, and the marine police jointly patrolling India’s near-seas.
National Command Control Communication and Intelligence Network (NC3I) has been launched to provide near gapless surveillance of the entire coastline and prevent the intrusion of undetected vessels, the coastal surveillance network project. It comprises:
- Coastal radar chain
- Automatic identification system (AIS)
- Vessel traffic management and information system (VTMS)

Ex-Sea Vigil-

The third edition of the ‘pan-India’ coastal defence Exercise ‘Sea Vigil-22’ is scheduled to be held on November 15 and 16.
The Exercise was conceptualised in 2018 to validate various measures that have been instituted towards enhancing maritime security since ‘26/11’.
The exercise will be undertaken along the entire 7,516 km coastline and Exclusive Economic Zone of India and will involve all the Coastal States and Union territories along with other maritime stakeholders, including the fishing and coastal communities.
The exercise is a build up towards the major Theatre Level Readiness Operational Exercise (TROPEX), which the Indian Navy conducts every two years.
Sea Vigil and TROPEX together will cover the entire spectrum maritime security challenges.

6. Alzheimer setback- Roche’s candidate drug fails two trials

Subject : Science and Technology

Context-

Roche’s Alzheimer’s drug candidate could not be shown to slow dementia progression in two drug trials.

The study

The twin studies (Graduate 1 and 2) failed to show that the drug gantenerumab could preserve abilities such as remembering, solving problems, orientation and personal care in patients suffering from the early stages of Alzheimer’s disease.
Gantenerumab was designed to bind to aggregated forms of beta-amyloid and remove brain amyloid plaques, which are believed to play a crucial role in the slowly progressing dementia disease.

Alzheimer’s disease-

It is a progressive neurologic disorder that causes the brain to shrink (atrophy) and brain cells to die.
It is the most common cause of dementia — a continuous decline in thinking, behavioural and social skills that affect a person’s ability to function independently.
No cure exists, but medication and management strategies may temporarily improve symptoms.

Alzheimer’s threat

Most of the 55 million people suffering from dementia worldwide are likely to be affected by Alzheimer’s disease, according to the World Health Organisation.
In 2030, dementia is expected to affect 78 million.

7. Need trillions of dollars to meet the net-zero target by 2070: India at COP27

Subject :Environment

Context-

India would need “tens of trillions of dollars by 2050” to transition to a low-carbon development path that would take it to the promised net-zero status by 2070.

Long-term Strategy document (LT-LEDS)-

Every country has to submit its long-term strategy, showing how it plans to reach its net-zero target. But currently only 57 countries (including India) have submitted it.
Developed countries have to reach net-zero status by 2050, China by 2060, and India by 2070.
India’s climate target is only till 2030.
Nearly two trillion dollars would be required just for adaptation purposes in the short term between now and 2030.
Concepts of “climate justice” and “sustainable lifestyle” were incorporated into the strategy.
- Climate justice is a concept that addresses the just division, fair sharing, and equitable distribution of the benefits and burdens of climate change and responsibilities to deal with climate change.
  - It examines concepts such as equality, human rights, collective rights, and the historical responsibilities for climate change.
- Sustainable living describes a lifestyle that attempts to reduce the use of Earth’s natural resources by an individual or society. It is referred to as “zero wastage living” or “net zero living”.
As of 2020, the OECD report claims that developed countries have mobilised and provided 83.3 billion USD in climate finance towards meeting the commitment to mobilise 100 billion USD by 2020.
The Oxfam report claims that it is only one-third of the claimed amount ( 21-24.5 billion USD).
In its NDC (nationally-determined contributions) in 2015, India emphesised the need of around 206 billion USD (at 2014-15 prices) between 2015 and 2030 for implementing adaptation actions in agriculture, forestry, fisheries, infrastructure, water resources and ecosystems.

Difference between Long Term Strategy (LTS) and NDCs-

NDCs contain specific actions or targets that have to be achieved by 2030.
The long-term strategies have to reveal estimated low-carbon pathways that will lead to a country attaining net-zero status.

8. India needs to increase urban infrastructure investments to $55 billion a year: World Bank

Subject :Geography

Context-

The World Bank report, titled ‘Financing India’s Infrastructure Needs: Constraints to Commercial Financing and Prospects for Policy Action’, estimated that India would need $840 billion over the next 15 years.

India’s Urbanization requirements-

India needs to increase its annual investment in city infrastructure from an average of $10.6 billion a year in the past decade to an average of $55 billion a year for the next 15 years.
By 2036, 600 million people will be living in urban cities in India, representing 40% of the population.
Currently, the central and state governments finance over 75% of city infrastructure, while urban local bodies (ULB) finance 15% through their own surplus revenues.
Currently, only 5 per cent of the urban infrastructure investments were coming from the private sector.
Government’s current (2018) annual urban infrastructure investments is $16 billion.

Urbanisation prospects-

As per the World Urbanization Prospects, 2018 report produced by the UN Department of Economic and Social Affairs (UN DESA) together, India, China and Nigeria will account for 35% of the projected growth of the world’s urban population between 2018 and 2050.
By 2050, it is projected that India will have added 416 million urban dwellers.
Currently, India’s population stood at 1210 million in 2011, with an urbanisation level of 31.1% (Census of India 2011).

State-wise Scenario:

Over 75% of the urban population of the country is in 10 States: Maharashtra, Uttar Pradesh, Tamil Nadu, West Bengal, Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Rajasthan, and Kerala.
Maharashtra leads with 50.8 million persons (13.5% of the total urban population of the country).
Uttar Pradesh accounts for about 44.4 million, followed by Tamil Nadu at 34.9 million.
Goa is the most urbanised State with 62.2% urban population.
Tamil Nadu, Kerala, Maharashtra, and Gujarat have attained over 40% urbanisation.
Among the North-Eastern States, Mizoram is the most urbanised with 51.5% urban population.
Low-Scoring States: Bihar (11.6%), Assam (14.1%), Odisha (16.68%) and Uttar Pradesh (22.3%) continue to be at a lower level of urbanisation than the national average.
Among Union Territories the NCT of Delhi and the UT of Chandigarh are most urbanized with 97.5% and 97.25% urban population respectively, followed by Daman and Diu and Lakshadweep.

India’s Global Commitments regarding Urban Development:

The SDGs Goal 11 promotes urban planning as one of the recommended methods for achieving sustainable development.
The UN-Habitat’s New Urban Agenda was adopted at Habitat III in 2016.
It puts forth principles for the planning, construction, development, management, and improvement of urban areas.
The UN-Habitat (2020) suggests that the spatial conditions of a city can enhance its power to generate social, economic and environmental value and well-being.
Paris Agreement: India’s National Determined Contributions (NDCs) includes the goals to reduce the emission intensity of the country’s GDP by 33 to 35% by 2030 from 2005 level.

UN-Habitat

The United Nations Human Settlements Programme is the United Nations programme for human settlements and sustainable urban development.
Established in 1978 as an outcome of the First UN Conference on Human Settlements and Sustainable Urban Development (Habitat I) held in Vancouver, Canada, in 1976.
Headquarters at the United Nations Office at Nairobi, Kenya.
It is mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities with the goal of providing adequate shelter for all.
It is a member of the United Nations Development Group.
The mandate of UN-Habitat derives from the Habitat Agenda, adopted by the United Nations Conference on Human Settlements (Habitat II) in Istanbul, Turkey, in 1996.
The twin goals of the Habitat Agenda are:
- Adequate shelter for all.
- The development of sustainable human settlements in an urbanizing world.

India’s Initiatives for Urbanisation:

Schemes/Programmes Related to Urban Development:
- Smart Cities
- AMRUT (Atal Mission for Rejuvenation and Urban Transformation) Mission
- Swachh Bharat Mission-Urban
- HRIDAY (Heritage City Development and Augmentation Yojana)
- Pradhan Mantri Awas Yojana-Urban

Government Initiatives for Slum Dwellers/Urban Poor:
- Pradhan Mantri Garib Kalyan Yojana
- Atmanirbhar Bharat Abhiyan (self-reliant India)
- Affordable Rental Housing complexes (ARHC)

9. India’s long-term strategy to transition to a ‘low emissions’ pathway involves more nuclear power, more ethanol

Subject: Environment

Context-

India announced its long-term strategy to transition to a “low emissions” pathway at the United Nations Conference of Parties (COP) ongoing in Sharm el-Sheikh, Egypt, which is premised on expanding its nuclear power capacity by at least three-fold in the next decade, apart from becoming an international hub for producing green hydrogen and increasing the proportion of ethanol in petrol.

What are India’s LT-LEDS (Long-term low emission development strategies)-

Among 195- member countries only 57 countries have submitted their long-term document, including India.
Maximise the use of electric vehicles, with ethanol blending to reach 20% by 2025 (currently 10%) and a strong shift to public transport for passenger and freight traffic.
Focus on improving energy efficiency by the Perform, Achieve and Trade (PAT) scheme, the National Hydrogen Mission, increasing electrification, enhancing material efficiency, and recycling and ways to reduce emissions.
India’s forest and tree cover are a net carbon sink absorbing 15% of CO2 emissions in 2016, and the country is on track to fulfilling its Nationally Determined Contributions (NDC) commitment of 2.5 to 3 billion tonnes of additional carbon sequestration in forest and tree cover by 2030.

PAT scheme-

It is a market-based mechanism to further accelerate as well as incentivize energy efficiency in the large energy-intensive industries.
The Energy Savings Certificates (ESCerts) were introduced in India in 2011 under the PAT by the Bureau of Energy Efficiency (BEE) under the National Mission of Energy Efficiency.
NMEEE is one of the eight national missions under the National Action Plan on Climate Change (NAPCC) launched by the Government of India in the year 2008.

Energy Savings Certificates (ESCerts):

This market- based mechanism is facilitated through the trading of Energy Savings Certificates (ESCerts) which are issued to those plants who have overachieved their targets.
The underachievers are entitled to purchase ESCerts through two power exchanges – Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL).
Industries that take part in this scheme are referred to as designated shoppers (DC).

Sectors Covered:

PAT covered about 13 energy-intensive sectors: Thermal power plants (TPP), cement, aluminium, iron and steel, pulp and paper, fertiliser, chlor-alkali, petroleum refineries, petrochemicals, distribution companies, railways, textile and commercial buildings (hotels and airports).

Other initiatives to Promote Energy Conservation and Energy Efficiency:

Standards and Labelling
Energy Conservation Building Code (ECBC)
Demand Side Management
SAATHEE Portal

10. Forced conversions dangerous, may affect nation’s security

Subject: Polity

Context:

The Supreme Court in its judgement on a petition filed by Advocate Ashwini Upadhyay seeking directions to the Centre and states to take stringent steps to check such conversions said that “forced” religious conversions are “very dangerous” and may “affect the security of the nation and freedom of religion and conscience” and asked the Centre to step in and make “very serious and sincere efforts” to tackle the issue.

What is the issue:

A petition was filed by Advocate Ashwini Upadhyay seeking directions to the Centre and states to take stringent steps to check forced conversions.
In response to the petition, the Supreme Court instructed the Center to file a response by November 22, and posted the matter for hearing on November 28.
The plea pointed out that in the 1977 ruling in the Rev Stainislaus versus State of Madhya Pradesh case, the Supreme Court had said “It has to be remembered that Article 25(1) guarantees ‘freedom of conscience’ to every citizen, and not merely to the followers of one particular religion and that, in turn, postulates that there is no fundamental right to convert another person to one’s own religion.

Did India have anti-conversion laws in the past:

Princely states headed by Hindu royal families were the first to introduce laws restricting religious conversions during the British colonial era, especially during the latter half of the 1930s and 1940s.
These laws were enacted to preserve Hindu religious identity amid British’s domination.
There were over dozens of Princely states with such laws, including Kota, Bikaner, Jodhpur, Raigarh, Patna, Surguja, Udaipur and Kalahandi.
Independent India also witnessed the introduction of anti-conversion bills in the Parliament, though none was implemented due to the lack of political support.
In 2015, the Union law ministry stated that a law against forced and fraudulent conversions cannot be created at the national level since law and order is a state subject under the Indian Constitution.
This means that the state governments have the power to enact such laws.

What is the Status of Anti-Conversion Laws in India:

Constitutional Provision: The Indian Constitution under Article 25 guarantees the freedom to profess, propagate, and practise religion, and allows all religious sections to manage their own affairs in matters of religion; subject to public order, morality, and health.However, no person shall force their religious beliefs and consequently, no person should be forced to practice any religion against their wishes.
Existing Laws: There has been no central legislation restricting or regulating religious conversions.However, since 1954, on multiple occasions, Private Member Bills have been introduced in (but never approved by) the Parliament, to regulate religious conversions.Over the years, several states have enacted ‘Freedom of Religion’ legislation to restrict religious conversions carried out by force, fraud, or inducements.

Which are the states that currently have anti-conversion laws:

Freedom of Religion laws are currently enforced in ten states i.e Odisha, Madhya Pradesh, Arunachal Pradesh, Chhattisgarh, Gujarat, Haryana,Himachal Pradesh, Uttarakhand, Uttar Pradesh and Jharkhand.

What are some Supreme Court Judgements on Marriage and Conversion:

HadiyaJudgement 2017:
- Matters of dress and of food, of ideas and ideologies, of love and partnership, are within the central aspects of identity.
- Neither the State nor the law can dictate a choice of partners or limit the free ability of every person to decide on these matters.
- The principle that the right to marry a person of one’s choice is integral to Article 21.
The Supreme Court of India, in both the Lily Thomas and SarlaMudgal cases, has confirmed that religious conversions carried out without a bonafide belief and for the sole purpose of deriving some legal benefits do not hold water.
Salamat Ansari-PriyankaKharwar case of Allahabad High Court 2020: The right to choose a partner or live with a person of choice was part of a citizen’s fundamental right to life and liberty (Article 21).
Puttaswamy or ‘privacy’ Judgment 2017:Autonomy of the individual was the ability to make decisions in vital matters of concern to life.

11. ‘No Money for Terror’ Conference (NMFT):

Subject: International relations

Context:

The Ministry of Home Affairs will be organising the Third Ministerial ‘No Money for Terror’ Conference next week where participants from around 75 countries are expected to attend.

What is the NMFT conference:

The Ministerial No Money for Terror (NMFT) Conference aims to create platform for international discussions on countering terror financing.
The ”No Money For Terror” conference is organised by Financial Intelligence Units (FIUs) of over 100 countries, jointly called The Egmont Group.
Recognising the importance of international cooperation in the fight against money laundering and financing of terrorism, a group of FIUs met a few years ago at the Egmont Arenberg Palace in Brussels, Belgium, and decided to establish an informal network of FIUs for the stimulation of international co-operation.
The Egmont Group was created to provide FIUs around the world a forum to exchange information confidentially to combat money-laundering, the financing of terrorism and other predicate offences.
The conference includes discussions on technical, legal, regulatory and cooperative aspects of the terrorism financing.
It aims to set pace for other high-level official and political discussions focusing on terror finance.
The inaugural edition of this conference was held in Paris, France, in 2018. The second edition of the NMFT took place in Melbourne, Australia, in 2019.
The third edition was set to take place in India in 2020 but was postponed because of COVID-19 pandemic that caused the global-level restrictions on travel.

What are the focus areas of the 3rd NMFT conference:

Discussions at the 3rd NMFT conference will focus on global trends of terrorism and terrorist financing, emerging technologies’ role in terrorism financing and importance of global cooperation to address related challenges.
The meeting will seek global cooperation in addressing the challenges in countering terror funding obtained via formal and informal channels.
It will focus on the role of cryptocurrency in funding terrorist activities. It will deliberate on the concerns related to the decentralized nature and the lack of regulation of cryptocurrencies.
The focus will also be given to dark web’s role in promoting transfer or crowdsourcing of funds for terrorism.
It also aims to strengthen the role of Financial Action Task Force (FATF) in setting global standards that can create an effective mechanism to combat terror funding.

12. G20 summit: What’s at stake:

Subject: Polity

Context:

Heads of state and governments belonging to 20 of the world’s major advanced and emerging economies will commence a two-day summit meeting in Bali, Indonesia.

What’s on the agenda for the 2022 summit:

The Bali summit will have three key priorities:

Global Health Architecture: This involves deliberations towards strengthening global health resilience and making the global health system more inclusive, equitable, and responsive to crises.
Digital Transformation: Deliberations here have centered on achieving the full potential of rapid digitalisation of the global economy by creating a new landscape of cooperation among nations.
Sustainable Energy Transition: Under this rubric, the discussions have focussed on ways to accelerate the transition towards cleaner energy sources. In particular, since any such transition requires substantial investments, the efforts have been focussed on finding a platform for such investments.

Since the October 2021 summit in Rome, prospects of the global economy have worsened.
A recent report of the International Monetary Fund on G20 countries shows, most of the G20 constituent countries have suffered significant output losses since the start of the Covid-19 pandemic. India, for instance, would have lost almost 14 per cent of its total output, the highest loss among all G20 countries.

What is G20 Summit:

G-20 was a group of finance ministers and central bank governors from 19 individual countries and the European Union.
It was established in 1999 and was elevated to a forum of Heads of Government in 2008 to effectively respond to the global financial crisis of 2008.
G-20 is a forum, not a legislative body and its agreements and decisions have no legal impact, but they do influence countries’ policies and global cooperation..
The G20 membership accounts for
- Two-thirds of the world’s population,
- 85% of global gross domestic product,
- 80% of global investment
- 75% of global trade.
- Contribute 79% of the world carbon emissions
G20 does not have any permanent secretariat or headquarters.
The G20 Summit is formally known as the “Summit on Financial Markets and the World Economy”.

How G20 works:

Since the G20 has no permanent secretariat. The agenda and work are coordinated by representatives of the G20 countries, known as ‘Sherpas’.
The presidency of the G20 rotates every year among members, and the country holding the presidency, together with the previous and next presidency-holder, forms the ‘Troika’.
Troika ensures continuity of the G20 agenda.
During India’s presidency, India, Indonesia and Brazil will form the troika.

13. SC released the Rajiv Gandhi case convicts guilty of terror:

Subject: Polity

Context:

The Supreme Court has set free the remaining six convicts in the Rajiv Gandhi assassination case, extending to them the benefit of its order releasing their co-convict A G Perarivalan.

What is the background of the case:

In 2014, the Supreme Court had commuted the death sentence of AG Perarivalan, one of the convicts in the Rajiv Gandhi assassination case, to life imprisonment on account of the undue and unexplained delay in deciding his mercy plea.
Subsequently in 2018, Perarivalan submitted an early release application to the Governor of Tamil Nadu under Article 161 of the Constitution.
The then Governor of Tamil Nadu decided to refer the plea to the President of India.
The Tamil Nadu government objected to such ‘reference’, which has no statutory or constitutional validity.
Both Perarivalan and the Tamil Nadu government, in 2018, approached the Supreme Court due to the delay in his release, despite a recommendation given by the then Tamil Nadu government to remit his sentence.

What is Supreme Court Judgement of May 2022:

In May 2022, the Supreme Court ordered the release of AG Perarivalan, invoking powers under Article 142 of the Constitution.
The court was of the view that the inordinate delay in deciding Perarivalan’s early release plea by the Governor under Article 161 warranted his release.
The court observed that the inordinate delay by the Tamil Nadu Governor in exercising his powers under Article 161 can be subject to judicial review.
The court opined that the state government is well-within its authority to aid and advise the Governor in pardon and remission pleas pertaining to cases of murder

What is Terrorist and Disruptive Activities (Prevention) Act (TADA):

TADA, was an Indian anti-terrorism law which was in force between 1985 and 1995 and modified in 1987 under the background of the Punjab insurgency and was applied to whole of India

What were the power under TADA:

The law gave wide powers to law enforcement agencies for dealing with national terrorist and ‘socially disruptive’ activities.
The police were not obliged to produce a detainee before a judicial magistrate within 24 hours.
The accused person could be detained up to 1 year.
Confessions made to police officers were admissible as evidence in the court of law, with the burden of proof being on the accused to prove his innocence.
Courts were set up exclusively to hear the cases and deliver judgements pertaining to the persons accused under this Act.
The trials could be held in camera with the identities of the witnesses kept hidden.
Under 7A of the Act, Police officers were also empowered to attach the properties of the accused under this Act.
Under this act police have no rights to give third degree or harass anyone to speak as mentioned in the act.

14. SC issues notice to HCs on plea for setting up of ‘Gram Nyayalayas’

Subject: Polity

Context:

The Supreme Court has recently sought a response from all high courts on a 2019 plea seeking a direction to the Centre and all states for taking steps to set up ‘Gram Nyayalayas’ under the supervision of the top court.

What is the issue:

The petition was filed by NGO National Federation of Societies for Fast Justice in 2019 said sections 5 and 6 of the 2008 Act provided that the state government in consultation with the high court will appoint a ‘Nyayadhikari’ for each ‘Gram Nyayalaya’, who will be a person eligible to be appointed as a judicial magistrate of the First Class.
The top court had in 2020 directed the states, which had not notified ‘Gram Nyayalayas’, to do so in four weeks, and asked high courts to expedite the process of consultation with state governments on the issue.
Despite a direction from the top court in 2020, many states have yet not taken any action.

What is Gram Nyayalaya:

Gram Nyayalayas or village courts are established under the Gram Nyayalayas Act, 2008 for speedy and easy access to the justice system in the rural areas of India.
The Act came into force from 2nd October 2009.

What are the Jurisdiction of Gram Nyayalaya:

A Gram Nyayalaya has jurisdiction over an area specified by a notification by the State Government in consultation with the respective High Court.
The Court can function as a mobile court at any place within the jurisdiction of such Gram Nyayalaya, after giving wide publicity to that regard.
The Gram Nyayalaya shall be established for every Panchayat at the intermediate level or a group of contiguous Panchayats at the intermediate level in a district.
The seat of the Gram Nyayalaya will be located at the headquarters of the intermediate Panchayat, they will go to villages, work there and dispose of the cases.
They have both civil and criminal jurisdiction over the offences.
The Gram Nyayalayas have been given power to accept certain evidence which would otherwise not be acceptable under Indian Evidence Act.
Gram Nyayalayas allow for conciliation of the dispute and settlement of the same in the first instance.

What is the process of appeal:

Appeal in criminal cases shall lie to the Court of Session, which shall be heard and disposed of within a period of six months from the date of filing of such appeal.
Appeal in civil cases shall lie to the District Court, which shall be heard and disposed of within a period of six months from the date of filing of the appeal.

15. Afghan supreme leader orders full enforcement of Islamic law:

Subject: International Relations

Context:

Afghanistan’s supreme leader has ordered judges to fully enforce aspects of Islamic law that include public executions, stonings and floggings, and the amputation of limbs for thieves,

What is Shariah Law:

Sharia in Arabic means “the way” and does not refer to a body of law.
It’s a set of wide-ranging moral and broad ethical principles drawn from the Koran and the practices and sayings (hadith) of Prophet Muhammad.
It also draws from Ijma’a, the consensus of Muslim scholars, and Qiyas, reasoning through analogy.
Sharia acts as a code for living that all Muslims should adhere to, including prayers, fasting and donations to the poor. It aims to help Muslims understand how they should lead every aspect of their lives according to God’s wishes.
Sharia is not a book of statutes or judicial precedent imposed by a government, and it’s not a set of regulations adjudicated in court.

What are crimes under Shariah:

Crimes fall into three categories under Sharia law:
- Tazir offences are the least serious and are at the discretion of a judge.
- Qisas crimes result in the offender being subjected to the exact same affliction as the victim.
- Hudud are the most severe offences that are considered crimes against God.