Current Affairs 30-August-2023 (The Hindu)

FCRA and NGOs

Background: NGOs and FCRA

• NGOs( Non-Governmental Organization) serve as a link between government and citizens.
• They play a significant role in bringing government services to grassroots communities.
• NGOs often depend on donations for their day-to-day operations.
• Only NGOs registered under the Foreign Contribution (Regulation) Act (FCRA) are eligible to receive foreign funding.

Foreign Contribution (Regulation) Act (FCRA)

• Objectives:
  • To prohibit acceptance and utilization of foreign contributions for activities detrimental to national interest.
  • To ensure foreign contributions are received through legitimate sources.
  • To ensure foreign contributions are utilized only for legitimate purposes.
• Ministry:
  • Ministry of Home Affairs oversees FCRA regulations.

What Constitutes Foreign Contributions?

• Defined under Section 2(1)(h) of the Act.
• Includes donations made by any foreign source to India.
• Exceptions:
  • Gifts for personal use.
  • Educational fees.
  • Business transactions.
  • Contributions made by an NRI from personal savings through normal banking channels.

Who Can Receive Foreign Contributions?

• Any person or association can receive foreign contributions.
• Conditions:
  • The person or association must have a definite cultural, economic, educational, religious, or social program.
  • FCRA registration or prior permission from the Central Government is required.
  • The person or association must not be prohibited under Section 3 of FCRA, 2010.

Who Cannot Receive Foreign Contributions?

• Defined under Section 3(1) of the Act.
• List includes:
  • Election candidates.
  • Correspondent, columnist, cartoonist, editor, owner, printer, or publisher of a registered newspaper.
  • Judge, Government servant, or employee of any government-controlled or owned body.
  • Member of any legislature; political party or office bearers.
  • Public servants.
  • Member of any organization of a political nature.
  • Association or company engaged in audio news or audiovisual news production or broadcast.

Applicability of FCRA

• Defined under Section 1(2) of the Act.
• Applicable to:
  • Whole India.
  • Citizens of India outside India.
  • Foreign branches of corporates incorporated in India.

 

Stock Market and SEBI(Securities and Exchange Board of India)

The stock market is a platform where buyers and sellers trade shares of publicly listed companies. Here's how it works:

1. Companies go public by offering shares through an Initial Public Offering (IPO).
2. Investors buy shares, becoming partial owners of the company.
3. Shares are traded on stock exchanges like BSE and NSE.
4. Buyers place bids, and sellers place offers, creating a marketplace.
5. When a bid and an offer match, a trade occurs.
6. Stock prices fluctuate based on supply and demand, company performance, and market trends.
7. Traders include retail investors, institutional investors, and market makers.
8. Stock market indices, like Sensex and Nifty, track overall market performance.
9. Market regulators like SEBI ensure fair practices and investor protection.

Issues

• Unofficial private placements
• Insider trading
• Non-adherence to provisions of the Companies Act
• Market manipulation
• Violation of rules
• Manipulation of prices
• Delay in delivery of shares

SEBI (Securities and Exchange Board of India)

• Established under the Securities and Exchange Board of India Act, 1992
• Ensures transparency to protect investors, issuers of securities, and other market participants
• Has the authority to audit stock exchanges' account books and market intermediaries' books

Structure of SEBI

• According to the Securities and Exchange Board of India Act, 1992, the Board consists of:
• Chairman
• Two members from officials of the Ministry of the Central Government dealing with Finance and administration of the Companies Act, 1956
• One member from officials of the Reserve Bank
• Five other members, at least three of whom are whole-time members, appointed by the Central Government

Powers of SEBI

• Quasi-Judicial Body:
• Delivers judgments related to fraud and unfair activities
• Quasi-Executive Body:
• Executes rules and regulations to safeguard investor interests
• Quasi-Legislative Body:
• Frames guidelines such as trading guidelines, disclosure requirements, and listing obligations

Functions of SEBI

• Development of the stock market
• Provides a platform for market participants
• Regulates the working of depositories and Foreign Portfolio Investors (FPI)
• Prevents insider trading and unfair trade practices
• Prohibits price manipulation of stocks
• Updates and educates investors
• Regulates mergers and acquisitions of companies

 

Important Points from Editorial(G20 Meeting)

G20 Trade and Investment Ministers’ Meeting

• 24th and 25th August(2023) - “G20 Trade and Investment Ministers’ meeting” at Jaipur.
• Discussion of various trade-related issues.
• Issuing of action plans to enhance trade opportunities.

Jaipur Call for Action

• Aim: Enhance access to information for MSMEs.
• Upgradation of existing databases to provide trade-related info for MSMEs.
• Reason: MSMEs struggle to access info about finance & market-sensitive data.
• Result: Addressing informational gaps faced by MSMEs.

Data of MSMEs

• Globally:
  • 90% of global businesses.
  • 50% of the world GDP.
  • 60-70% of jobs worldwide.
• India-specific:
  • MSMEs: 630 lakh manufacturing units.
  • 8000+ products, contributing to 45% of manufacturing output in India.
  • 40% of direct and indirect exports.
  • MSMEs are the 2nd largest employer after agriculture.

Steps by Indian Government to Promote Small Businesses

National Small Industries Corporation (NSIC)

• Works under the Ministry of Micro, Small and Medium Enterprises.
• Task: Support and grow MSMEs nationwide.
• Marketing Support Scheme:
  • Expands the reach of products developed by small businesses.
• Credit Support Scheme:
  • Provides financial assistance for procuring raw materials, marketing, etc.

Credit-Linked Capital Subsidy Scheme

• Launched in 2000 under the Ministry of Micro, Small & Medium Enterprises.
• Aim: Provide subsidized loans to small businesses to meet technological advancements.

Small Industries Development Bank of India

• Offers direct loans to MSMEs in need of funds.
• Provides indirect loans to NBFCs and Small Finance Banks.
• NBFCs and Small Finance Banks in turn provide funds to small businesses.

 

Electoral Commission Appointment Reforms

BACKGROUND

• In 2015, a Public Interest Litigation (PIL) challenged the legality of the current process for selecting Election Commissioners in India.
• Article 324 of the Indian Constitution mandates Parliament to create a relevant law for this purpose, but no such law has been enacted to date.
• Presently, the President appoints Election Commissioners based on the Prime Minister's proposal.

SUPREME COURT JUDGMENT

• The Supreme Court expressed concern about the absence of statutory provisions governing the appointment of Election Commissioners.
• The Court did not mandate the government to adopt a statute according to Article 324(2).
• Instead, it reformed the selection procedure by creating a committee consisting of the Prime Minister, Leader of the Opposition in Parliament, and the Chief Justice of India.

PREVIOUS RECOMMENDATIONS

• Historical recommendations and debates proposed reforms in appointing the Chief Election Commissioner (CEC) and other Election Commissioners.
• The Constituent Assembly Debates suggested appointing the CEC through a two-thirds majority in a joint session of Parliament, with Parliament responsible for crafting appropriate laws.
• Various commissions, including the V.M. Tarkunde Committee (1975), Dinesh Goswami Committee (1990s), and the Second Administrative Reforms Commission (2nd ARC) in its fourth report (2009), recommended selecting ECI members through a collegium.
• In 2006, former CEC Mr. B.B. Tandon suggested a seven-member committee headed by the Prime Minister, a proposal reiterated by the Opposition party BJP in 2012.

CHIEF ELECTION COMMISSIONER AND OTHER ELECTION COMMISSIONERS BILL, 2023

• On August 10, 2023, the Chief Election Commissioner and Other Election Commissioners Bill, 2023, was introduced in the Rajya Sabha.
• The bill introduces a Search Committee, led by the cabinet secretary and including two other members, to identify potential candidates.
• It also establishes a Selection Committee, a three-member body headed by the Prime Minister, with members including the Leader of the Opposition in Lok Sabha and a Union Cabinet Minister nominated by the Prime Minister.

INFERENCE

• The inclusion of a Union Cabinet Minister in the Selection Committee, while excluding the judiciary, raises concerns of potential biases and a structural advantage for ruling parties.
• While the bill aims to eliminate biases and attachments of the ruling party over the Election Commission (EC), there are concerns it might increase governmental control, potentially compromising the EC's independence.
• EC's independence is vital for ensuring impartiality and fairness in elections.

WAY FORWARD

• To address these concerns, it is imperative that the government reviews the composition of the Selection Committee.
• Additionally, involving independent experts, jurists, and representatives from civil society in the Search Committee could enhance transparency and fairness in the appointment process, safeguarding the EC's independence and its crucial role in upholding democratic integrity.

 

Jal Jeevan Mission (JJM)

• Launched in 2019.
• Designed to address water scarcity and provide safe and sustainable drinking water to every rural household.
• Managed by the Ministry of Jal Shakti.

Objectives

• The main aim is to achieve "Har Ghar Jal" or "Water to Every Home" by ensuring access to a functional tap connection.
• Other objectives include drinking water source augmentation and grey water treatment and reuse.

Features of Jal Jeevan Mission

• Paani Samitis at the village level have been established to plan, implement, manage, operate, and maintain village water supply systems.
• Fund sharing pattern:
  • 90:10 for Himalayan and North-Eastern States.
  • 50:50 for other states.
  • 100% funding for Union Territories.

 

Pragyan Confirms Sulphur

Two Payloads

1. APXS - ‘Alpha Particle X-Ray Spectrometer’.
2. LIBS - ‘Laser Induced Breakdown Spectroscope’

LIBS - Steps Involved

1. High-energy laser pulse focused on the surface of a material.
2. Plasma formation and light emission
   • LASER will vaporize and ionize it to form plasma.
   • Plasma emits light.
3. Analyzing the emitted light
   • Each element produces plasma which emits a particular wavelength.
   • Scientists use this data to determine the element.

Elements Discovered

• Aluminum (Al), Sulphur (S), Calcium (Ca), Iron (Fe), Chromium (Cr), Titanium (Ti), Manganese (Mn), Silicon (Si), and Oxygen (O).
• Discovery of hydrogen is underway.

Significance of Sulphur Discovery

• The lunar Sulphur will help us decode the moon's volcanic history.
• It will help us understand the impacts of solar wind on airless celestial bodies.
• Can be used in future lunar missions.