News360 - 1st and 2nd April , 2023 | Daily Current Affairs

1. Home Minister Amit Shah inaugurates Development Works in UK & Sardar Vallabhbhai Patel Memorial in Bidar, Karnataka

Amit Shah, the Union Minister of Home Affairs, visited Uttarakhand on March 30, 2023, to inaugurate various development works such as the computerization of Multipurpose Primary Agricultural Credit Cooperative Societies (MPACS) and the launch of joint cooperative farming, Jan Suvidha Kendras, and Jan Aushadhi Kendras in Haridwar. He also introduced the model of integrated collective cooperative farming in 95 development blocks of Uttarakhand.

During the visit, he attended the 113th convocation ceremony of Gurukul Kangri University and inaugurated Patanjali University/Patanjali Vishwavidyalaya and Sanyas Diksha Mahotsav at Patanjali Yogpeeth in Haridwar, where he was the chief guest. The Chief Minister of Uttarakhand, Pushkar Singh Dhami, and other officials were present during the inaugurations.

It is noteworthy that Uttarakhand initiated the computerization of Primary Agricultural Credit Society (PACS) on October 30, 2021, which was the first such effort in India. All 670 PACS in the state have now been computerized. Additionally, under the Cooperative Societies, Uttarakhand has become the first state to establish 95 Jan Aushadhi Kendras and Jan Suvidha Kendras. These Kendras provide access to more than 300 schemes of both Central and State Governments, directly to the villages. The cooperative Jan Aushadhi Kendras also offer medicines at a discount of about 50-90% to the people.

Furthermore, the Uttarakhand government has secured the first position in the cooperative sector in India by completing the computerization of 307 cooperative bank branches and 670 MPACS.

During the visit, Amit Shah honored farmer Rajesh Sazwan with Sehkari Kisan Gaurav Samman 2023 for his excellent work in the field of horticulture and agriculture. He also recognized Women Self-help Group and farmer Bhura Singh under the Deen Dayal Yojana.

2. Home Minister unveils the statues of Lord Basaveshwara and Nadaprabhu Kempegowda in Bengaluru

Amit Shah, the Home Minister, inaugurated the statues of Lord Basaveshwara and Nadaprabhu Kempegowda at the State Assembly premises in Bengaluru, Karnataka, on March 26, 2023. These two figures are highly significant in the history of Karnataka. The Chief Minister of Karnataka, Basavaraj Bommai, and other dignitaries were also in attendance during the unveiling ceremony.

Important :

Karnataka holds several top positions in various sectors in India. It ranks first in terms of Foreign Direct Investment (FDI) with an investment of Rs. 2.72 lakh crore. 

Bengaluru, the capital of Karnataka, is home to 39 startups with an asset valuation exceeding $1 billion. 

Additionally, Karnataka contributes significantly to India's space sector, accounting for 25% of the country's overall contribution. It also leads in innovation and defense aircraft manufacturing, with 75% of India's aircraft produced in the state.

3. Lok Sabha amends Competition Act 2002; CCI to penalise Tech MNCs for Global Revenue

The Competition Act, 2002 has undergone amendments approved by the Lok Sabha, the lower house of Parliament, on March 29, 2023. The amendments are intended to extend the coverage of local laws to global deals made by digital multinational companies (MNCs). The Competition (Amendment) Bill, 2022 was passed after Finance Minister Nirmala Sitharaman presented 13 official amendments to the Bill. 

The amendment empowers the Competition Commission of India (CCI) to impose penalties on MNCs for any violations based on their international revenue. The Bill's goal is to regulate international digital companies' transactions, provided they have a strong business presence in India. Additionally, the amendments provide for the settlement of minor violations.

The proposed amendments to the Competition Act, 2002 include several changes :

(i) Mergers and combinations will be regulated based on a deal value threshold. Entities must obtain approval from the Competition Commission if the deal value exceeds Rs 2000 crore and if both companies involved have significant business operations in India.

(ii) Control of the target company is a crucial factor that affects the Competition Commission's clearance.

(iii) The government has defined 'material influence' as the basis for control in the most recent amendment to the Competition Act.

(iv) The Act now includes a settlement mechanism to reduce litigation and facilitate easier dispute resolution.

(v) Companies that engage in anti-competitive practices may face monetary penalties under the Competition Act.

(vi) The bill seeks to reduce procedural timelines for merger approval, allowing for quicker approval.

4. SEBI Board Meeting (March 2023): Significant Takeaways from 16 Major Decisions

At its board meeting on March 29, 2023, the Securities and Exchange Board of India (SEBI) made several decisions to safeguard investors' interests and strengthen the market infrastructure to manage disruptions. 

This meeting saw the highest number of announcements made in recent times, with 16 significant decisions and the approval of SEBI's budget estimates for the fiscal year 2023-2024 (FY24) among the 17 items announced.

The 16 Major Decisions and Their Implications :

ESG Related

1.Balanced Framework for ESG Disclosures, Ratings and Investing

SEBI has approved a legal framework for ESG (Environmental, Social, and Governance) Disclosures, Ratings, and Investing, along with amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Mutual Funds) Regulations, 1996 to promote a balanced approach to ESG. 

The Board has made several notable decisions in this regard, including the implementation of the BRSR (Business Responsibility and Sustainability Report) Core to improve the reliability of ESG disclosures. 

The BRSR Core comprises a limited number of Key Performance Indicators (KPIs) for which listed entities must gain reasonable assurance, and a glide path is specified for its application, starting with the top 150 listed entities (by market capitalization) from FY 2023-24 and subsequently expanding to the top 1000 listed entities by FY 2026-27.

SEBI has approved a legal framework for ESG (Environmental, Social, and Governance) disclosures, ratings, and investing to promote a balanced approach to ESG. The framework includes amendments to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI (Mutual Funds) Regulations, 1996. The following decisions were made by the Board in this regard:

ESG Disclosures for Value Chain of Listed Entities

i. Specific ESG disclosures and assurance (BRSR Core only) for the value chain of listed entities will be established to promote transparency, with specific thresholds and compliance requirements.

ii. The requirements will be applicable to the top 250 listed entities (by market capitalization) on a comply-or-explain basis starting from fiscal years 2024-25 and 2025-26, respectively.

ESG Ratings

i. ESG Rating Providers (ERPs) must include India/emerging market factors in their ESG Ratings given the unique environmental and social concerns of emerging markets.

ii. ERPs shall offer a specific category of ESG Ratings called “Core ESG Rating” based on the assured parameters under BRSR Core to increase the credibility of ESG Ratings.

ESG Investing

i. SEBI has directed the implementation of special measures to minimise the risk of mis-selling and greenwashing, improve stewardship reporting requirements, and promote ESG investing.

ii. ESG schemes are required to invest at least 65% of their AUM in listed firms that provide assurance on the BRSR Core.

2. Establishing a regulatory framework for Environmental, Social and Governance (ESG) Rating Providers in Securities Market by introducing a new chapter in the SEBI (Credit Rating Agencies) Regulations, 1999

The Board gave its approval to proposals for setting up a regulatory framework for ESG rating providers (ERPs) in the Indian securities market, along with associated proposals. 

The proposals aim to achieve the following :

i. Improve transparency in ESG rating rationales.

ii. Mitigate conflict of interest by ERPs.

iii. Facilitate the augmentation of transition finance in India.

iv. Facilitate ESG ratings based on assured data.

Secondary Market Related

3.ASBA -like facility for trading in Secondary Market: Option to investors

The Board has approved a proposal for a facility similar to Application Supported by Blocked Amount (ASBA) for secondary market trading. 

The facility involves blocking funds for secondary market trade through UPI, and will be optional for both investors and stock brokers.

4.Upstreaming of clients’ funds by Stock Brokers (SBs) / Clearing Members (CMs) to Clearing Corporations (CCs) to mitigate credit risk on intermediaries

The SEBI Board has approved the establishment of a regulatory framework on the upstreaming of client funds by SBs/non-bank CMs to CCs, which aims to reduce the credit risk on intermediaries and potential misuse of client funds. 

The framework mandates that clients’ funds shall be upstreamed by SB/non-bank CMs to CCs on an End of Day basis, ensuring that clients’ funds are not retained by SBs/non-bank CMs. Funds shall be upstreamed only in the form of cash, lien on Fixed Deposit Receipts (subject to certain conditions), or pledge of units of Mutual Fund Overnight Schemes (MFOS). 

However, the framework is not applicable to Bank-CMs (including Custodians that are banks) and for proprietary funds of SBs/CMs in any segment.

The framework is expected to be implemented in two phases, with the first phase of the glide path scheduled to begin on July 1, 2023. 

Additionally, the SEBI Board has agreed to establish a proposal for the Application Supported by Blocked Amount (ASBA)-like facility that will be made available to investors for secondary market trading. 

This optional service is based on the blocking of funds for secondary market trade via UPI, and will be available to both investors and stock brokers.

5.Amendments to Stock Brokers Regulations to institute a formal mechanism for prevention and detection of fraud or market abuse by stock brokers

The Board has given approval to a framework to establish an institutional mechanism for preventing and detecting fraudulent activities and market abuse by stock brokers. 

In this regard, amendments will be made to the SEBI (Stock Brokers) Regulations, 1992 to include the following :

i. Implementation of trading activity surveillance systems and internal controls;

ii. Stock broker and employee obligations;

iii. Reporting and escalation mechanisms;

iv. Whistleblower policy .

The amendments to the SEBI (Stock Brokers) Regulations, 1992 will come into effect on October 1, 2023.

6.Introduction of Regulatory Framework for Index Providers

The Board has granted its preliminary approval to a proposal to regulate Index Providers aimed at fostering accountability and transparency in the governance and management of financial benchmarks in the securities market. This would entail that all index providers, including MSCI, would be governed by SEBI regulations.

Mutual Funds Related

7.Framework for “Corporate Debt Market Development Fund”: Backstop Facility for specified Debt Funds during market dislocations

i. The SEBI (Alternative Investment Funds) Regulations, 2012 will be amended to establish the Corporate Debt Market Development Fund (CDMDF) as an Alternative Investment Fund (AIF) following the Board's approval.

ii. The CDMDF will act as a safety net for the purchase of investment-grade corporate debt instruments during times of market turbulence, instilling confidence among corporate bond market participants and enhancing secondary market liquidity.

iii. To purchase corporate debt securities during a market disruption, the CDMDF may raise funds based on a guarantee provided by the National Credit Guarantee Trust Corporation (NCGTC).

8.Bringing clarity on the roles and responsibilities of Trustees and Board of Asset Management Companies of Mutual Funds with a focus on Unit holder protection

The Board has approved amendments to the SEBI (Mutual Funds) Regulations, 1996 to clarify the responsibilities of Trustees and the Board of Asset Management Companies (AMCs) of mutual funds (MFs). 

The amendments will explicitly make the Board of AMC responsible for protecting the interests of unitholders, in addition to other stakeholders, and will provide for the formation of a Unitholder Protection Committee by the Board of the AMC with a specific focus on protecting unitholders' interests.

9.Review of Regulatory Framework for Sponsors of Mutual Funds to give greater flexibility to the industry

The Board has approved amendments to the SEBI (Mutual Funds) Regulations, 1996, aimed at providing an alternative route for a broader set of entities to become sponsors of mutual funds. This will be done while also maintaining the current eligibility criteria for sponsors.

Shareholder Empowerment Related

10. Amendments to SEBI (Listing Obligations and Disclosure Requirements) Regulations to facilitate more comprehensive and timely disclosure

The Board has approved amendments to the Listing Obligations and Disclosure Requirements (LODR) Regulations after considering feedback from stakeholders. The amendments include :

• Requiring listed entities to disclose material events or information

• Strengthening corporate governance by empowering shareholders at listed companies

• Simplifying the timeline for newly listed entities to submit their first financial results

• Requiring listed entities to fill vacancies for directors, compliance officers, chief executive officers, and chief financial officers within three months of the vacancy to ensure critical positions are not left vacant.

11. Amendments to SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, with the objective of increasing transparency and streamlining certain issue processes

The Board has approved amendments to the Issue of Capital and Disclosure Requirements (ICDR) Rules, which include the following issues :

(i) Disclosure requirements for underwriting

(ii) Requirements to announce bonus issues and to exclusively issue bonuses through dematerialized form held in demat accounts.

12.Introduction of concept of General Information Document (GID) and Key Information Document (KID) for issuance of Bonds/ Commercial Paper and streamlining of disclosures

i. In order to enhance the ease of doing business for issuers and eliminate the need for multiple filings of placement memoranda for non-convertible securities and commercial paper intended for listing, the Board has approved the establishment of a Green Initiative and Disclosure (GID) framework.

ii. Under this framework, issuers are required to file a GID with the stock exchanges at the time of the first issuance, containing the information and disclosures as per the common schedule. The validity of the GID shall be for 1 year.

iii. Initially, the GID framework will be implemented on a 'comply or explain' basis until March 31, 2024, after which it will become mandatory.

13.Extension of “Comply or Explain” period for Large Corporates (LCs) to meet their financing needs from debt market through issuance of debt securities to the extent of 25% of their incremental borrowings in a financial year

The Board determined that a contiguous block of 3 years will replace the previous contiguous block of 2 financial years as the period of compliance for large corporations to meet their financing needs from debt markets through the issuing of debt securities to the extent of 25% of their incremental borrowings.

14.Extension Of ‘Comply or Explain’ period for the High Value Debt Listed Entities (HVDLEs) in respect of corporate governance norms and simplification of disclosure requirements pertaining to the payment of interest/ coupon and redemption amount

The Board has decided to extend the period for HVDLEs to comply or explain regarding corporate governance standards (i.e., regulations 16 to 27 of the LODR Regulations) until March 31, 2024. 

In order to improve the ease of doing business for issuers of non-convertible securities, the disclosure requirements related to the payment of interest/coupon and redemption amount are being simplified and multiple filings are being eliminated. 

The Board has also approved the proposal to consolidate the disclosure requirements under Regulation 57 of the LODR Regulations.

Alternative Investment Fund (AIF) Related

15. Amendment to Alternative Investment Funds Regulations to prescribe provisions for valuation of investments, dematerialisation of units, certification requirement for key employees of Investment Manager, transactions with associates, and option to sell unliquidated investments to a new scheme of Alternative Investment Funds

i. SEBI has mandated Alternative Investment Funds (AIFs) to adopt a consistent and standardized approach to evaluate their investment portfolios.

ii. SEBI has instructed all AIFs with a corpus of over Rs. 500 crore to dematerialize all units of new and existing schemes by October 31, 2023, in order to safeguard investors from operational risks and fraud.

iii. AIF schemes with corpuses less than Rs. 500 crore are required to dematerialize their units by April 30, 2024, to comply with the new regulation.

Investor Grievances Redressal Related

16. Strengthening the Investor Grievance Redressal Mechanism in the Securities Market through amendments to Regulations to operationalize Online Dispute Resolution (ODR) Mechanism for investors across registered intermediaries / regulated entities SEBI Budget

17. The SEBI Board has given its approval to the SEBI budget estimates for the fiscal year 2023–2024 (FY24)

5. Aditya Birla Health Insurance enters into bancassurance partnership with UCO Bank

Aditya Birla Health Insurance Co Ltd (ABHICL), a company under Aditya Birla Capital Ltd (ABCL), has formed a bancassurance alliance with UCO Bank for distributing its health insurance products.

UCO Bank's extensive network of 3,164 branches and a customer base of over 40 million throughout India will allow ABHICL to reach a broader market. The Aditya Birla Group and MMI Holdings of South Africa own ABHICL through a joint venture.

Important :

(i) ABHICL's range of health insurance products, which includes incentivized wellness benefits of up to 100% Health Returns and chronic management programs, Day-1 coverage for common conditions such as asthma, high blood pressure, high cholesterol, diabetes, wellness coaching on nutrition and fitness, and counselling on mental health, will now be available to UCO Bank's customers and employees through this partnership.

(ii) ABHICL's bancassurance network has expanded with the inclusion of UCO Bank as its 17th partner, providing access to over 80,000 direct selling agents spread across India.

6. Godrej Capital & SBI signs MoU to offer Banking Products & Services

Godrej Capital Limited, the financial services division of the Godrej Group, and State Bank of India (SBI) have inked a Memorandum of Understanding (MoU) to enhance their collaboration. As per the MoU, the bank will offer various financial products and services to Godrej Capital. 

The alliance aims to increase the accessibility and affordability of financial products, thereby promoting financial inclusion. The partnership will also enable SBI to capitalize on synergies to empower its customers and accelerate the growth of its economy. 

Through the collaboration, SBI will offer banking products, credit cards, wealth management, and insurance products as preferred partners, while also delivering financial solutions to the Godrej group.

7. Axis Bank partners with Shriram Housing Finance for Co-Lending

Axis Bank and Shriram Housing Finance Limited (SHFL) announced a collaboration on March 30, 2023, under the co-lending model using the Yubi Co.Lend platform. 

The partnership will allow both lenders to offer secured home loans and MSME loans to borrowers in the middle and low-income groups located in rural and semi-urban areas. 

The co-lending will be facilitated by Yubi's technological platform, which will streamline the loan processing as per the co-lending guidelines.

8. MoC&I Released FTP 2023: India aims for increase exports to USD 2 trillion by 2030

The Government of India's Ministry of Commerce and Industry (MoC&I) released the Foreign Trade Policy (FTP) 2023 on March 31, 2023, with the goal of increasing India's exports to USD 2 trillion by 2030 by transitioning from an incentive-based to a remission and entitlement-based system. 

The Union Minister for MoC&I, Piyush Goyal, unveiled the FTP 2023 during a ceremony in New Delhi. The FTP 2023 is slated to come into effect on April 1, 2023. India is expected to close the FY 2023 with total exports of USD 760-770 billion, up from USD 676 billion in 2021-2022.

Abut FTP 2023 :

Unlike the usual 5 year-FTP, the FTP 2023 does not have an end date and it will be updated as and when needed.

The previous FTP came into force on 1st April 2015 and was later extended in the wake of COVID-19 pandemic and the subsequent disruption in economic activities.

The last extension was given in September 2022 till 31st March 2023.

Important :

The Ministry of Commerce and Industry of the Government of India released the Foreign Trade Policy (FTP) 2023 on March 31, 2023. The FTP aims to increase India's exports to USD 2 trillion by 2030 by shifting from incentives to remission and entitlement based regime. Some of the key highlights of the FTP 2023 are :

(i) The addition of 4 new Towns of Export Excellence (TEE) to the existing 39 TEEs, namely Faridabad, Moradabad, Mirzapur, and Varanasi.

(ii) The inclusion of e-commerce exports in the FTP benefits, which are forecasted to reach USD 200-300 billion by 2030.

(iii) The doubling of the value limit for exports through courier service from Rs 5 lakh to Rs 10 lakh per consignment.

(iv) The reduction of fees for Micro, Small & Medium Enterprises (MSMEs) to facilitate their exports.

(v) The aspiration to make the Indian Rupee a global currency and encourage international trade settlement in the domestic currency.

(vi) The commitment to ensure policy continuity and responsiveness to promote India's Exports of Goods and Services.

(vii) The introduction of an amnesty scheme for one-time settlement of default in export obligation to help businesses comply with their export targets.

Key People :

Anupriya Patel, Ministers of State(MoS), MOC&I, Commerce Secretary Sunil Barthwal and Santosh Sarangi, Director General of Foreign Trade (DGFT) were present during the release of FTP 2023.

9. UAE President names Sheikh Khaled as Crown Prince of Abu Dhabi

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan was appointed as Crown Prince of Abu Dhabi (UAE) by President Sheikh Mohammed bin Zayed Al Nahyan on March 29, 2023.

About Sheikh Khaled bin Mohamed bin Zayed Al Nahyan :

(i) He was born on January 8, 1982.

(ii) He serves as a member of the Abu Dhabi Executive Council and chairs both the Abu Dhabi Executive Committee and the Abu Dhabi Executive Office.

(iii) He was appointed Head of National Security in 2016 and Deputy National Security Adviser in 2017.

(iv) He is a member of Abu Dhabi's Supreme Council for Financial and Economic Affairs and sits on the board of directors of Abu Dhabi National Oil Company (ADNOC).

(v) He is also the head of several boards, such as the Advanced Technology Research Council (ATRC), the UAE Genomics Council, and the Executive Committee of the board of directors of ADNOC.

Other Appointments :

(i) President Sheikh Mohammed also appointed his brother Sheikh Mansour bin Zayed Al Nahyan as Vice President of the UAE.

(ii) MBZ named his other brothers Sheikh Tahnoun bin Zayed Al Nahyan and Hazza bin Zayed Al Nahyan as deputy rulers of Abu Dhabi.

10. Tata Power re-appoints Praveer Sinha as CEO & MD for Four Years

Tata Power Company Limited (TATA Power), one of India's oldest and largest integrated power utilities, has extended the tenure of Praveer Sinha as its Chief Executive Officer (CEO) and Managing Director (MD) for another four years starting from May 1, 2023. 

Sinha's current tenure as CEO and MD is set to end on April 30, 2023. The reappointment was approved by the Tata Power Board on March 30, 2023, based on the recommendation of the Nomination and Compensation Committee. 

Sinha serves as the chairman of the CII Western Region Council and co-chairs the CII National Committee on Power. Additionally, he holds the position of visiting research associate at the Massachusetts Institute of Technology (MIT) in Boston, USA.

11. Aaliya Mir becomes First J&K Woman to Receive Wildlife Conservation Award

Aaliya Mir, a wildlife conservationist working for the India-based charity Wildlife SOS, has received the Wildlife Conservation Award for 2023 from the administration of the Union Territory (UT) Jammu and Kashmir (J&K) for her exceptional conservation efforts in the region. 

She is the first woman from J&K to receive this award. The award includes a cash prize of Rs 25,000 and a momento. Aaliya Mir received the award from Manoj Sinha, Lieutenant Governor of J&K, during the International Day of Forests event held by the Department of Forest, Ecology and Environment of the J&K government on 21st March 2023. 

She was recognized for her work in various aspects of wildlife conservation, including rescuing and releasing wild animals, treating injured animals, mitigating human-wildlife conflict, and managing two bear rescue centers in Kashmir.

12. International Transgender Day of Visibility 2023 – 31st March

On March 31st, 2023, the world celebrated International Transgender Day of Visibility, an annual event dedicated to recognizing the achievements and contributions of transgender and gender-diverse people globally. 

The day's primary goal is to raise awareness of the work that still needs to be done to eliminate discrimination and other barriers to inclusion within all aspects of society. 

The Transgender flag, proposed in 1999, is a tricolour pride flag with five horizontal stripes in light pink, light blue, and white. It was designed by Monica Helms, an American trans woman, to represent the transgender community, organizations, and individuals.

In memory of Rita Hester, a black transgender woman who was brutally killed on November 8, 1998, International Transgender Day was established. The day was later renamed as International Transgender Day of Visibility and founded by Rachel Crandall, a transgender activist and executive director of Transgender Michigan, in 2009. 

The first International Transgender Day of Visibility was observed on March 31, 2009.