Current Affairs for UPSC Civil Services Exam: January 07, 2021

[GS3 – Economy – Capital Market] Market Infrastructure Institutions (MIIs)

TH | Prelims | GS3 > Economy > Capital Market

Context: SEBI proposed norms to facilitate new entrants to set up market infrastructure institutions (MIIs).
Market infrastructure institutions (MIIs) are institutions like stock exchanges & depositories (banks/institutions that hold & assist trading of securities like bonds, equity shares, etc.).

Some of the Key proposals

A resident promoter setting up an MII may hold up to 100% shareholding.
It will be brought down to not more than (either 51% or 26%) in 10 years.
Foreign individuals may acquire or hold up to 10% in an MII.
Any person other than the promoter may acquire or hold less than 25% shareholding.
At least 50% of ownership of the MII may be represented by individuals with experience of five years or more in the areas of capital markets or technology related to financial services.

Stock Exchange

It is an organisation which facilitates buying & selling of shares of listed companies.
Listed companies are those companies which are registered with the stock exchange.
Only old shares are bought & sold because it is a secondary market. (IPO is done in a primary market)
Shares are auctioned: demand & supply of shares are constructed on the bidding of people.
Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) are the major stock exchanges in India.
Primary market (new issues market): deals with new securities being issued for the first time (IPO).
After IPO, the company’s shares are listed & traded in an open market (stock exchange).
Secondary market (stock market or stock exchange): existing securities are bought & sold.

Securities & Exchange Board of India (SEBI)

It is an autonomous statutory regulator of the securities & commodity market in India.
It was established in 1988 & given Statutory Powers through the SEBI Act, 1992.
Headquarters: Mumbai; it has four other regional offices.
SEBI is responsive to the needs of three groups, which constitute the market:
- issuers of securities (companies)
- investors
- market intermediaries (stock & commodity exchanges)

[GS3 – Economy – Exports] Duty Drawback Incentive

TH | Prelims + Mains | GS3 > Economy > LPG Reforms > Measures introduced to promote exports

Context: CBI books six for duty drawback incentive fraud.
They were booked for allegedly claiming duty drawback incentives without eligibility.
Duty drawback (DBK) incentive schemes are issued by the Directorate of Drawback.
Directorate of Drawback functions under Central Board of Indirect Taxes & Customs (CBIC).
DBK is the rebate (a partial refund) of any duty that is chargeable on imported (excisable) materials that are used to manufacture goods in India & then the finished goods are exported from India.
Duty drawback is the sum of the following amounts:
Customs duty (taxes on imported goods) that is paid on imported input goods. This includes Special Addition Duty (SAD — additional custom duty leviable on imported goods).
Excise duty (taxes levied on the manufacture of goods within the country) that is paid on indigenous input goods
Duty that is paid on packing material
Input goods that are obtained without paying customs or excise duty are not eligible for DBK.

[GS3 – Economy – Taxes] Entertainment Tax – an indirect tax subsumed by GST

TH | GS3 > Economy > Taxes > Indirect Taxes > GST

Context: More than 24 years! after a concert in Mumbai by Michael Jackson, Maharashtra cabinet retrospectively upheld the entertainment tax waiver granted for it.
A consumer rights organisation had moved the HC in 1996 challenging the entertainment tax waiver.
In 2011, the HC had ruled that the state government has a right to extend waiver under the state’s laws.
The cabinet’s decision will allow the organiser to get back the profit deposited with the govt decades ago!

Entertainment tax

Entertainment tax (amusement tax) is any tax levied on any form of commercial entertainment, such as movie tickets, exhibitions, circus, large festive celebrations, sport events, etc.
The entertainment tax is an indirect tax, which is levied by the state government on the buyer.
There is a demand to levy such a tax on online services like Netflix, Spotify, & others.

Laws that govern Entertainment tax

Entertainment tax is different for different states as it falls under the purview of the state governments.
Rules pertaining to entertainment tax are listed in the 7^th Schedule, under Article 246 of the Constitution.
The 7^th Schedule under Article 246 deals with the division of power between the Union & the States.
It demarcated the powers into 3 lists — Union List, State List, & the Concurrent List.
In 2017, the entertainment tax was subsumed by Goods & Services Tax.

Impact of GST on Entertainment tax

Prior to GST, municipal bodies had no share in entertainment taxes collected by states.
101^st Constitution Amendment (introduced GST) permitted levy & collection of ET by local bodies.
In the absence of a state law, it suggested that the State may compensate local bodies for the revenue loss & compensation may be made equal to 90% of the State GST collected on entertainment.
Some states have made provisions that require local bodies to charge entertainment tax.
In such states, entertainment tax is levied by local bodies over & above GST.
Overall, GST has a mixed effect on the entertainment industry, depending on the states.
For states where the entertainment tax was higher than GST rates, there is a shortfall in revenue & vice versa.

[GS3 – Envi – Conservation] Vulture Conservation Breeding Centres

TH | Prelims | GS3 > Conservation | Basics: Indian Vulture Crisis

Context: To increase the availability of food for vultures in the Mudumalai Tiger Reserve (MTR), the Forest Department is allowing dead cattle from a nearby cow shelter to be left for the scavengers.
In a bid to save endangered species of vultures from extinction, the National Board for Wildlife has approved a new plan that proposes setting up Vulture Conservation Breeding Centres in some States.
A captive breeding centre would come up in the buffer zone of Mudumalai Tiger Reserve.
Critically endangered Oriential White-backed Vultures, Indian white-rumped vulture & long-billed vulture are found here.

[GS3 – S&T – COVID] Covishield vs Covaxin

Coronavirus disease 2019 (COVID-19)

Virus, Difference Between Virus & Bacteria, DNA & RNA Viruses

Coronavirus, Coronavirus Disease 2019 (COVID-19 or 2019-nCoV)

Immune System, T– Cells & Coronavirus, Cytokine storm

Covid-19 Tests: RT-PCR, Rapid Antigen Test & Serological Test

Proposed Vaccines, Treatments in the Context of COVID-19

[GS3 – S&T – Diseases] Avian influenza (H5N8) – Bird Flu

TH | Prelims | GS2 > issues related to Health

Context: Avian influenza (H5N8) has been confirmed among ducks in Kottayam.
Bird flu/Avian influenza (H5N8) is a highly contagious viral disease affecting several species of food-producing birds (chickens, turkeys, quails, guinea fowl, etc.) as well as pet birds & wild birds.
While it can prove lethal for birds, the H5N8 strain of avian influenza has a lower likelihood of spreading to humans as compared to H5N1.
Human infections are primarily acquired through direct contact with infected poultry.
Avian influenza virus subtypes include A(H5N1), A(H7N9), & A(H9N2) A(H5N8)

Government Response

Directions have been given to enforce culling of sick birds as per the 2015 National Avian Influenza Plan.
The plan is prepared & revised by Department of Animal Husbandry & Dairying (not MoEF).
The plan provides guidance to state govts in prevention, control, & containment of avian influenza.
Fishing will be banned in the affected region.

Influenza (Flu) in Humans

Flu is a contagious respiratory illness caused by influenza viruses that infect the nose, throat, & sometimes the lungs.
Influenza viruses are classified into subtypes based on two surface proteins, Hemagglutinin (HA) & Neuraminidase (NA).
It can cause mild to severe illness, & at times can lead to death.
There are four types of influenza viruses namely A, B, C & D.
Influenza A viruses: These are the only influenza viruses that cause flu pandemics that is global epidemics of flu disease.
Influenza B viruses: They are not classified into subtypes & can be broken down into lineages.
Influenza C viruses: This type of virus is detected less frequently & usually causes mild infections & does not present public health risk. Or we can say that they do not cause human flu epidemic.
Influenza D viruses: They primarily affect cattle & does not infect or cause illness in people.
Influenza A & B viruses causes acute respiratory infection & the seasonal epidemic of disease.

Source & Credits

[Prelims – Envi Mapping – TR] Mudumalai Tiger Reserve

TH | Prelims | Mapping > Tiger Reserves

It lies on the north-western side of the Nilgiri Hills (Blue Mountains), in Nilgiri District.
It shares its boundaries with the states of Karnataka & Kerala.
Vegetation: tropical moist deciduous, tropical dry deciduous forest, tropical dry thorn forests are in the east.
Major Fauna: Indian elephant, Bengal tiger, gaur, golden jackal, bonnet macaque, sambar deer, Indian muntjac, Indian giant squirrel, red giant flying squirrel, etc.
Major Avian Fauna: Indian white-rumped vulture (CR) & Indian Vulture (CR).
Threats: Tourism & invasive species such as lantana.