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  • Central agencies gear up for FATF mutual evaluations

    Central agencies, including the Financial Intelligence Unit (FIU) and the Directorate of Revenue Intelligence (DRI), have begun preparations for the Financial Action Task Force’s (FATF) mutual evaluation process of India.

    What is the news?

    • India is due to undergo the mutual evaluation process in the second half of 2022, which will assess the country’s compliance with international anti-money laundering and counter-terror financing standards.

    What is FATF?

    • FATF is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.
    • The FATF Secretariat is housed at the OECD headquarters in Paris.
    • It holds three Plenary meetings in the course of each of its 12-month rotating presidencies.
    • As of 2019, FATF consisted of 37 member jurisdictions.

    India’s say in FATF

    • India became an Observer at FATF in 2006. Since then, it had been working towards full-fledged membership.
    • On June 25, 2010, India was taken in as the 34th country member of FATF.

    What is FATF’s mutual evaluation process?

    • The mutual evaluation process is a review of a country’s legal and institutional framework to combat money laundering and terrorist financing, as well as its implementation of measures to prevent these crimes.
    • During the process, the FATF assesses a country’s compliance with its 40 recommendations on anti-money laundering and counter-terror financing, as well as the level of effectiveness of these measures in practice.
    • The outcome of the mutual evaluation is a report that highlights a country’s strengths, weaknesses, and areas for improvement, and assigns a rating based on the level of compliance and effectiveness.

    How will FATF evaluate India?

    • The FATF’s evaluation will cover a wide range of areas, including India’s legal framework, regulatory system, law enforcement efforts, and international cooperation.
    • Central agencies have been working to ensure that India’s anti-money laundering and counter-terror financing laws are in line with international standards, and that their implementation is effective.

    Significance of this evaluation

    • The outcome of the evaluation will be a report that highlights India’s strengths, weaknesses, and areas for improvement, and assigns a rating based on the level of compliance and effectiveness.
    • The mutual evaluation process is an important tool in the global fight against money laundering and terrorist financing.
    • Its outcome can have significant implications for a country’s access to international financial markets and its reputation in the global community.

     

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  • Geo-heritage Sites and Geo-relics Bill, 2022

    The draft Geo-heritage Sites and Geo-relics (Preservation and Maintenance) Bill, 2022, aimed at protecting India’s geological heritage that includes fossils, sedimentary rocks, natural structures, has raised alarm in India’s geo-sciences and palaeontology community.

    Geo-heritage Sites and Geo-relics Bill, 2022

    Objectives

    • Protect and preserve the geo-heritage sites and geo-relics of national importance in India.
    • Empower the central government to identify, declare, acquire, preserve, and maintain geo-heritage sites and geo-relics.
    • Ensure that the valuable geological specimens and formations are not damaged or destroyed by human activity or natural disasters.
    • Promote research, education, and awareness about the significance and value of geo-heritage sites and geo-relics.
    • Provide a legal framework for the protection and management of geo-heritage sites and geo-relics, to ensure their long-term preservation and maintenance.

    Key Features

    • Declaration of geoheritage sites: The central government may declare a site as a geoheritage site of national importance. Geoheritage sites must contain features of geological significance, such as geo-relics or natural rock sculptures. Geo-relics are movable relics such as fossils or meteorites.
    • Protection of geoheritage sites: The draft Bill empowers the central government to acquire, preserve, and maintain geoheritage sites. The Director General of the Geological Survey of India will be given powers for this purpose, such as surveying and excavation. Construction on these sites will be prohibited. However, it may be authorised by the Director General to preserve the site or to repair a structure that predates the declaration of the site.
    • Protection of geo-relics: The central government may declare that a geo-relic cannot be moved from its site, by notification, unless permitted by the Director General. The Director General may direct the acquisition of a geo-relic to protect it.
    • Offences and penalties: Offences under the Bill include (i) destruction or misuse of a geoheritage site, (ii) illegal construction, and (iii) damaging or illegally moving a geo-relic. These offences are punishable with a fine of up to five lakh rupees or imprisonment of up to six months, or both.

    Issues raised with this legislation

    • Narrow definition of “geo-relics”: The bill defines “geo-relics” as movable geological specimens, but does not include other important geological features, such as geological formations or landscapes.
    • No academic participation: The bill gives exclusive powers to the Geological Survey of India (GSI) for identifying, declaring, acquiring, preserving, and maintaining geo-heritage sites and geo-relics, without any role for state geological departments or universities.
    • Excessive powers vested to GSI: Experts have criticized the draft bill for vesting exclusive powers in the GSI, without any role for state geological departments or universities. The GSI will be responsible for identifying, declaring, acquiring, preserving, and maintaining geo-heritage sites and geo-relics.
    • Lack of public participation: The bill has been criticized for lacking any legal framework for the involvement of local communities or civil society organizations in the protection and management of geo-heritage sites.
    • Lacks transparency: The bill has been criticized for lacking transparency and public consultation, with some experts suggesting that it should be redrafted to ensure a more participatory and inclusive approach to the protection and management of geo-heritage sites.

    Way forward

    • Inclusion of state geological departments and universities: The bill should include the participation of state geological departments and universities in the identification, declaration, acquisition, preservation, and maintenance of geo-heritage sites and geo-relics.
    • Public participation: The bill should be amended to include a legal framework for the participation of local communities and civil society organizations in the protection and management of geo-heritage sites.
    • Accountability and oversight: The bill should be revised to include provisions for greater accountability and oversight of the GSI, to ensure that its powers are not misused or abused.
    • Expanded definition of “geo-relics”: The bill should be amended to include a broader definition of “geo-relics” that encompasses a wider range of important geological features.
    • Wider consultation: The drafting and implementation of the bill should be made more transparent and inclusive, with greater consultation with all stakeholders to ensure that their interests are adequately represented.

     

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  • 1st Saudi Women to space via Axiom-2 Mission

    saudi

    Central idea: Saudi Arabia will send its first-ever woman astronaut on the US-led Axiom 2 space mission later this year, in the latest move to revamp the kingdom’s ultra-conservative image.

    Axiom Mission 2

    • Axiom Mission 2 is a private spaceflight mission organized by Axiom Space, a Houston-based aerospace company.
    • The mission is scheduled to launch in 2023 and aims to send four private individuals on a 10-day trip to the International Space Station (ISS).
    • Rayyana Barnawi will join fellow Saudi male astronaut Ali Al-Qarni on a mission to the International Space Station (ISS) during the second quarter of 2023.
    • The mission is the second private crewed flight to the ISS, following the Inspiration4 mission by SpaceX.
    • The crew is expected to undergo months of training, including simulations, physical conditioning, and emergency procedures.
    • The mission is part of Axiom Space’s plan to establish a private space station attached to the ISS, which is expected to be launched in 2024.

     

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  • Role of regulators in the Stock Market

    regulator

    Context

    • On 25 January, US-based Hindenburg Research put out a tweet, talking about a negative report on the Adani Group that it had published. The report made many allegations against the group which triggered a fall in the price of their listed stocks.

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    Just think of this situation

    • A research report is released by a global firm that is also a short seller (that is, one who sells shares that it does not own, but buys them back at a lower price once the price falls).
    • The report outlines areas of concern in a company that is listed in another jurisdiction. The issues raised could relate to the firm’s accounting or market practices.
    • The report is released, quite curiously, before the company is going in for an equity issuance.

    What happens after the news?

    • Panic sale: As equity markets run on sentiments, such news leads to a panic sale and the share price of the company comes down sharply.
    • Widespread uncertainty: The market sees investor wealth eroding sharply, leading to widespread uncertainty, as this is how contagions progress.
    • Outrage: Denials are issued by the concerned company while the short seller stands firm on its views. However, shareholders have seen an erosion in their wealth and there is outrage everywhere.

    In such a situation, what can the regulator do?

    • Policies and system in place to put verified facts in public domain: It is for regulators in other jurisdictions to have policies/systems in place for verified facts to be put in the public domain.
    • In the current context: The Securities and Exchange Commission of the US would matter and if the broker complied with its rules, then there is nothing to stop their views from being aired in a globalised world. This is why it is said that if any company opts for listing in overseas markets, there is more reason to ensure that its accounts are in place and there are no deviations from best practices.

    What can regulators do to protect investors?

    • It is necessary to understand that when share prices tumble: Only when someone sells the shares that have declined in value will a loss be actually incurred. This is the first point that ordinary investors need to keep in mind. While the media will talk of the loss of value and wealth, it is notional for those shareholders who don’t sell. And stock prices will return to their equilibrium once the storm passes.
    • There is a need to have a wide market intelligence network: A special division that continuously analyses the messaging about Indian companies across the world. Given that such reports do not come up without signals being sent along the way, monitoring of views on companies listed overseas would be essential.
    • While citing financial accounting irregularities need to be looked into: the accounting and auditing firms need to take on more responsibility to ensure that the Generally Accepted Accounting Practices (GAAP) are followed for overseas-listed firms. They will have to be made partners in any such crisis in terms of taking ownership and clarifying the same.
    • Detecting price manipulation: Price manipulation, for instance, is one practice that has always been a concern for regulators. And it takes a lot of experience to detect it. Thus exchanges need to ensure that their market watch and surveillance practices are robust. This is where trading patterns can show if there has been market manipulation.
    • Restoring assurance and sanity in the market: It is necessary that investors have some assurance from the regulator, which may be needed to restore sanity in the markets. However, this should be an immediate and time-bound investigation which looks at the allegations or the shortcomings of the report.
    • Investing derivative segments too: As a corollary, the regulator needs to investigate the derivative segment too and probably talk to other regulators to analyse how the short positions have been created and whether they were in order. This will mean being in touch with other regulators, especially the SEC which regulates the jurisdiction for most overseas listings.
    • Audit firms can be employed to flag off the concerns: The regulator should insist that all overseas listed companies have regular investor calls with stakeholders where meetings are recorded and transmitted back home for special teams to examine so that there is a sense of how potential investors feel about the companies.

    Conclusion

    • In the cases of overseas reports, investors must have some assurance from the regulator, which can restore sanity in the markets. But investors also need to be proactive when investing. Those who are more active investors would perhaps need to be aware of developments in the companies that they have invested in.

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  • India’s Agricultural Farm Exports data expected to reach a new high

    export

    India’s agricultural exports are poised to scale a new peak in the financial year ending March 31, 2023. But so are imports, bringing down the overall farm trade surplus.

    Agriculture trade in a nutshell

    • India’s agricultural exports are expected to reach a new high in FY 2022-23.
    • The value of farm exports from April-December 2022 was 7.9% higher than the same period of the previous year, totalling $39 billion.
    • Imports of agricultural produce have also grown 15.4% from $24.1 billion in April-December 2021 to $27.8 billion in April-December 2022, resulting in a shrinking of the overall farm trade surplus.
    • As a result, there has been a further shrinking of the surplus on the farm trade account.

    Note: This newscard provides useful insights regarding agricultural exports-import balance. Aspirants are not advised to memorize the numbers but imbibe the trend.

    Drivers of Exports

    The two big contributors to India’s agri-export growth have been rice and sugar.

    (1) Rice

    • India in 2021-22 shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at $9.66 billion.
    • That included 17.26 mt of non-basmati (worth $6.12 billion) and 3.95 mt ($3.54 billion) of basmati rice.
    • In the current fiscal, the growth has been primarily led by basmati rice.
    • Its exports have gone up by 40.3% in value (from $2.38 billion in April-December 2021 to $3.34 billion in April-December 2022).
    • The corresponding increases have been less for non-basmati exports: 3.3% in value ($4.51 billion to $4.66 billion) and 4.6% in quantity (12.60 mt to 13.17 mt).

    (2) Sugars

    • Sugar exports hit a record value of $4.60 billion in 2021-22, as against $2.79 billion, $1.97 billion, $1.36 billion, and $810.90 million in the preceding four fiscals.
    • This fiscal has seen a further surge of 43.6%, from $2.78 billion in April-December 2021 to $3.99 billion in April-December 2022.
    • India exports of rice and sugar are well on course to touch, if not top, $11 billion and $6 billion respectively in 2022-23.

    Key imports

    More than a general export slowdown, it’s the growth in imports that should be cause for concern.  This has come mainly from three commodities-

    (1) Edible oils

    • The first is vegetable oils, whose imports shot up from $11.09 bn in 2020-21 to $18.99 bn in 2021-22.
    • Imports now account for over 60% of the country’s estimated 22.5-23 mt annual oil consumption.

    (2) Cotton

    • India has turned from a net exporter to a net importer of cotton.
    • India’s cotton exports reached an all-time-high of $4.33 bn back in 2011-12.
    • It remained at reasonably high levels until 2013-14 ($3.64 bn), before plunging to $1.62 bn by 2016-17 and $1.06 bn in 2019-20.
    • There was a recovery thereafter to $1.90 bn in 2020-21 and $2.82 bn in 2021-22.
    • But during this fiscal, imports have also soared from $414.59 million to $1.32 billion for the same period.

    Policy implications

    export

    • It can be seen how closely India’s farm performance is linked to international commodity prices.
    • The UN Food and Agriculture Organization’s (FAO) Food Price Index — having a base value of 100 for the 2014-16 period — averaged 122.5 points in 2012-13 and 119.1 points in 2013-14.
    • Those were the years when India’s agri-exports were at $42-43 billion. As the index crashed to 90-95 points in 2015-16 and 2016-17, so did exports to $33-34 billion.
    • The exports recovery in 2020-21 and 2021-22 happened along with — rather, on the back of — rising global prices and the FAO index averaging 102.5 points and 133 points in the two years.

    Inferences from this trend

    Ans. India’s farm exports will slow down in the months ahead.

    • Moreover, this could be accompanied by increased imports, as was the case from 2014-15 to 2017-18.
    • In the event, the focus of policymakers too, may have to shift from being pro-consumer (to the extent of banning/ restricting exports) to pro-producer (providing tariff protection against unbridled imports).

    Way forward

    • The government needs to do something about cotton and edible oils.
    • India’s cotton production has declined from the high of 398 lakh bales in 2013-14 to a 12-year low of 307.05 lakh bales in 2021-22.
    • Clearly, the effects of not allowing new genetic modification (GM) technologies after the first-generation Bt cotton are showing, and impacting exports as well.
    • A proactive approach is required in edible oils as well, where planting of GM hybrid mustard has been permitted with great reluctance — and which is now a matter before the Supreme Court.

     

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  • What is Bhashini Initiative?

    bhashini

    Bhashini, a small team at the Ministry of Electronics and IT (MeitY), is currently building a WhatsApp-based chatbot that relies on information generated by ChatGPT to return appropriate responses to queries.

    What is Bhashini Initiative?

    • ‘Bhashini,’ one of these initiatives, is a local language translation mission that aims to break the barrier between various Indian tongues by using available technology.
    • This government platform aims to make Artificial Intelligence (AI) and Natural Language Processing (NLP) resources available in the public domain to be used by – Indian MSMEs, startups and individual innovators.
    • This will help developers to offer all Indians easy access to the internet and digital services in their native languages.

    How does it work?

    • The project is available on this website: https://www.bhashini.gov.in/en/.
    • It is aimed to build and develop an ecosystem where various stakeholders can unite to maintain an ‘ever-evolving repository of data, training and benchmark datasets, open models, tools and technologies.’
    • This online platform also has a separate ‘Bhashadaan’ section which allows individuals to contribute to multiple crowdsourcing initiatives and it is also accessible via respective Android and iOS apps.
    • The contribution can be done in four ways — Suno India, Likho India, Bolo India and Dekho India – where users have to type what they hear or have to validate texts transcribed by others.

    Importance of Bhashini

    • Bhashini hopes of breaking the massive Indian language barrier and wants developers to offer Indians digital services in their local languages.
    • The project not only has a massive size and magnitude but also has several benefits.
    • India has a chance to create a roadmap to allow internet access for local languages.
    • Moreover, this is important considering the increased availability of smartphones and cheaper data rates are allowing the internet to penetrate the remote and rural areas of the country.

    Key initiatives in this regard

    • The National Language Translation Mission (NLTM) was announced in the 2021-22 budget by finance minister Nirmala Sitharaman.
    • The reason behind introducing this mission was a survey that concluded that 53% of Indians who don’t access the internet have said that they would start using the web if it had content available in their native languages.
    • This is where Bhashini comes in with the sole purpose of developing a national digital public platform for languages to provide universal access to content.
    • This is expected to improve the delivery of digital content in all Indian languages.
    • Finally, it will help in creating a knowledge-based society where information is freely and readily available which will make the ecosystem and citizens “Atmanirbhar.”

     

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  • Who was Maharishi Dayanand Saraswati?

    dayanand

    PM inaugurated celebrations commemorating Maharishi Dayanand Saraswati’s 200th birth anniversary.

    Dayanand Saraswati (1824-1883)

    • Dayanand Saraswati (born Mool Shankar Tiwari) was a religious leader and founder of the Arya Samaj, a reform movement in the nineteenth century.
    • He was a profound scholar of the Vedic lore and Sanskrit language.
    • Dayanand was a great scholar, and was well-versed in the Vedas and the Upanishads.
    • He was also proficient in Sanskrit grammar, philosophy, religion, politics and other sciences.

    Notable works

    (1) Literary works

    • He wrote several books, including the Satyarth Prakash, which became the moral and spiritual foundation of the Arya Samaj.
    • This book was translated into many languages, including Hindi, English and Urdu.

    (2) Freedom movement

    • He was the first to give the call for Swaraj as “Indian for India” – in 1876, a call later taken up by Lokmanya Tilak.
    • Subsequently, the philosopher and President of India, S. Radhakrishnan, called him one of the “makers of Modern India”, as did Sri Aurobindo.

    (3) Religious reform

    • Denouncing the idolatry and ritualistic worship prevalent in Hinduism at the time, he worked towards reviving Vedic ideologies.
    • He believed that the Vedas should be interpreted in the light of reason and not of blind faith.
    • He also campaigned against animal sacrifice and the worship of idols.

    (4) Social reform

    • Dayanand was a staunch advocate of women’s rights.
    • He believed in the equality of all human beings and advocated the abolition of the caste system.

    (5) Education

    • Dayanand was an ardent believer in the power of knowledge and education.
    • He established the Gurukul system of education, which provided free education to all, irrespective of caste or gender.
    • Based on his teachings, in 1885 the first DAV School was established at Lahore which was subsequently upgraded to become the first DAV College.
    • In 1886 the DAV College Trust and Management Society was established and registered.

     

    Try this PYQ:

    Which among the following event happened earliest?

    (a) Swami Dayanand established Arya Samaj

    (b) Dinabandhu Mitra wrote Neeldarpan

    (c) Bankim Chandra Chattopadhyay wrote Anandmath

    (d) Satyendranath Tagore became the first India to succeed in the Indian Civil Services Examination.

     

    [wpdiscuz-feedback id=”m4telm58he” question=”Please leave a feedback on this” opened=”1″]Post your answers here.[/wpdiscuz-feedback]

     

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  • Scientists discover new ‘Quasicrystals’

    quasicrystals

    Scientists have discovered a new type of quasicrystal, one with 12-fold symmetry, in the Sand Hills of north central Nebraska, USA.

    What is a Quasicrystal?

    • Quasicrystal is essentially a crystal-like substance.
    • However, unlike a crystal, in which atoms are arranged in a repeating pattern, a quasicrystal consists of atoms that are arranged in a pattern that doesn’t repeat itself regularly.
    • For the longest time, physicists believed every crystalline arrangement of atoms must have a pattern that repeats itself perfectly over and over again.
    • However, this changed in 1982, when material scientist Dan Shechtman discovered crystal structures that are mathematically regular, but that do not repeat themselves.

    How are they formed?

    • Electrical discharge triggered quasicrystal formation in the recent finding.
    • It’s also the first time that researchers have found a quasicrystal somewhere other than meteorites or the debris from nuclear blasts.

    Applications of quasicrystals

    • There is no major commercial applications yet exploit properties of the quasicrystalline state directly.
    • Quasicrystals form in compounds noted for their high strength and light weight, suggesting potential applications in aerospace and other industries.
    • They can be used in surgical instruments, LED lights and non-stick frying pans.

     

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  • In news: Agasthyarkoodam Observatory

    agasthyarkoodam

    Agasthyarkoodam was once home to a forgotten and long-lost 19th-century observatory established by Scottish meteorologist John Allan Broun.

    Agasthyarkoodam Observatory

    • The Agasthyarkoodam Observatory is an astronomical research observatory located in the state of Kerala.
    • The observatory is situated at an altitude of 1600 meters above sea level and is owned and operated by the Indian Institute of Astrophysics (IIA).
    • The observatory is equipped with a 1-meter optical telescope and various other instruments for studying the night sky.
    • The observatory is used for research and educational purposes and is open to the public for viewing night-sky objects.

    Why in news?

    • Agasthyarkoodam in the Western Ghats once housed a magnetic observatory that was established by Scottish meteorologist John Allan Broun.
    • Broun used it to record magnetic and meteorological observations in tandem with the Thiruvananthapuram astronomical observatory.
    • Broun’s astronomical research in India began after he was invited by the ruler of the erstwhile Travancore Uthram Tirunal Marthanda Varma to helm the Thiruvananthapuram observatory following the death of its first director John Caldecott in 1849.
    • The observatory started recording observations in July 1855.
    • However, it was closed in 1881 by the then Madras Governor Sir William Denison.

    What are magnetic observatories?

    • Magnetic observatories continuously measure and record Earth’s magnetic field at a number of locations.
    • In an observatory of this sort, magnetized needles with reflecting mirrors are suspended by quartz fibres.
    • Light beams reflected from the mirrors are imaged on a photographic negative mounted on a rotating drum.
    • Variations in the field cause corresponding deflections on the negative.
    • Their magnetograms are photographed on microfilm and submitted to world data centres, where they are available for scientific or practical use.

     

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  • What is Solar Prominence?

    solar

    Recently, the sun puzzled many scientists with a large prominence near its north pole.

    What is Solar Prominence?

    • A solar prominence (also known as a filament when viewed against the solar disk) is a large, bright feature extending outward from the Sun’s surface.
    • Prominences are anchored to the Sun’s surface in the photosphere, and extend outwards into the Sun’s hot outer atmosphere, called the corona.
    • A prominence forms over timescales of about a day, and stable prominences may persist in the corona for several months, looping hundreds of thousands of miles into space.

    How are they formed?

    • Scientists are still researching how and why prominences are formed.
    • The red-glowing looped material is plasma, a hot gas comprised of electrically charged hydrogen and helium.
    • The prominence plasma flows along a tangled and twisted structure of magnetic fields generated by the sun’s internal dynamo.
    • An erupting prominence occurs when such a structure becomes unstable and bursts outward, releasing the plasma.

     

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