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  • SEBI Closing Auction Session goes live and moves index closing values

    Why in the News

    The Closing Auction Session (CAS) became operational from 3 August 2026 for stocks with Derivative Contracts. During its initial days, the National Stock Exchange (NSE) Nifty 50 and Bombay Stock Exchange (BSE) Sensex recorded unusually large differences in their closing values.

    What is the Closing Auction Session (CAS)?

    • The Closing Auction Session (CAS) is a dedicated 20-minute trading block (3:15 PM to 3:35 PM) introduced by SEBI on August 3, 2026.
    • It pools end-of-day buy and sell orders for eligible stocks to discover a single equilibrium closing price, replacing the final 30-minute VWAP method.

    What is Volume Weighted Average Price (VWAP)?

    • The Volume Weighted Average Price (VWAP) is the average price of a stock weighted by the trading volume, giving greater importance to prices with higher traded volumes.

    Why did Nifty and Sensex Diverge?

    • Separate CAS order books on the NSE and BSE.
    • Different index composition (Nifty 50: 50 stocks; Sensex: 30 stocks).
    • Different weightages of constituent stocks.
    • Initial adjustment to the new auction mechanism.

    Challenges

    • Temporary benchmark divergence.
    • Higher tracking error for Exchange Traded Funds (ETFs) and index funds.
    • Residual risk of price manipulation.
    • Liquidity concerns in less-traded stocks.
    • Operational adaptation by brokers and investors.

    Key Concept:

    • Equilibrium Price: The price at which the maximum quantity of buy and sell orders can be matched during the auction.
    • Derivative Contracts: Financial instruments whose value is derived from an underlying asset such as stocks or indices. Examples: Futures Contracts and Options Contracts
    • Collectively known as the Futures and Options (F&O) segment.

    Securities and Exchange Board of India (SEBI)

    • Established: 1988 (Statutory status in 1992).
    • Governing Act: Securities and Exchange Board of India Act, 1992.
    • Headquarters: Mumbai.
    • Functions: Protect investors. Regulate and develop the securities market. Regulate stock exchanges, mutual funds, and market intermediaries.

  • Taxation and Other Laws (Amendment) Bill, 2026 introduced in Lok Sabha

    Why in the News?

    The Finance Minister introduced the Taxation and Other Laws (Amendment) Bill, 2026 in the Lok Sabha to amend tax and payment laws, improve tax certainty, attract foreign investment, and support the Make in India initiative.

    Key Highlights

    • Amends the Payment and Settlement Systems Act, 2007, Income-tax Act, 2025, and Finance Act, 2026.
    • Replaces the Income-tax (Amendment) Ordinance, 2026 with a permanent law.
    • Simplifies tax exemptions for foreign companies using Indian data centres.
    • Allows leased data centres to avail tax benefits.
    • Facilitates relocation of foreign fund managers to India without creating a taxable business presence.
    • Restores dividend tax exemption for REITs and InvITs under the new tax regime.

    Other Legislative Business

    • Discussion on Demands for Excess Grants (FY 2022-23).
    • Introduction of the Appropriation (No. 3) Bill, 2026 to regularise excess government expenditure.
    • Statements on implementation of Parliamentary Standing Committee recommendations.
    • Consideration of the Bankers’ Books Evidence Bill, 2026 to modernise evidence laws for digital banking.

    Appropriation Bill

    • Authorises the government to withdraw money from the Consolidated Fund of India to meet approved expenditure.
    • Required under Article 114 of the Constitution.

    Demands for Excess Grants

    • Presented when actual government expenditure exceeds the amount approved by Parliament.
    • Examined by the Public Accounts Committee (PAC) before parliamentary approval.
    • Constitutional Basis: Article 115.

    Bankers’ Books Evidence Bill, 2026

    • Seeks to modernise legal provisions governing bank records by recognizing digital banking and electronic records.

  • Door opens for fee on UPI, RuPay debit card payment to big merchants

    Why in the News?

    The Ministry of Finance has proposed allowing banks and payment system providers to levy a Merchant Discount Rate (MDR) on Unified Payments Interface (UPI) and RuPay debit card transactions made to large merchants (annual turnover above ₹50 crore).

    What is Merchant Discount Rate (MDR)?

    • Merchant Discount Rate (MDR): A fee paid by a merchant to its bank for processing digital payments.
    • The fee is shared among: Acquiring bank, Issuing bank, and Card/payment network.
    • Currently, UPI and RuPay debit card transactions have zero MDR.

    Key Proposal

    • MDR permitted for merchants with annual turnover above ₹50 crore.
    • Small and medium merchants remain exempt.
    • Aims to ensure the long-term sustainability of the digital payments ecosystem.

    Why is MDR Being Considered?

    • Zero MDR has created a funding gap for payment infrastructure.
    • Maintaining and expanding UPI networks involves significant operational costs.
    • The Standing Committee on Finance recommended a sustainable revenue model.

    Challenges

    • Large merchants may pass the cost on to consumers.
    • Could discourage UPI acceptance among some businesses.
    • Turnover-based implementation may increase compliance complexity.
    • May affect confidence in India’s zero-cost digital payment model.

    Back2Basics

    • UPI: Unified Payments Interface, a real-time payment system developed by the National Payments Corporation of India (NPCI).
    • RuPay: India’s domestic card payment network operated by NPCI.
    • NPCI: National Payments Corporation of India, the umbrella organisation for retail payment systems.
    • Regulator: Reserve Bank of India (RBI) under the Payment and Settlement Systems Act, 2007.

    National Payments Corporation of India (NPCI)

    • National Payments Corporation of India (NPCI) is an umbrella organization for operating retail payment and settlement systems in India.
    • Established in 2008 under the provisions of the Payment and Settlement Systems Act, 2007.
    • Promoted by the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA).
    • Registered as a Not-for-Profit Company under Section 8 of the Companies Act, 2013 (earlier Section 25 of the Companies Act, 1956).

    [2018] Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

    (a) The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.

    (b) The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.

    (c) The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards.

    (d) The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.

  • Climate whiplash, fire clouds: factors fuelling Europe’s wildfires

    Why in the News?

    Severe wildfires have swept across Greece, France, Spain, Portugal and Italy, driven by climate whiplash, pyrocumulonimbus (pyroCb) clouds, and prolonged heatwaves, highlighting the growing impact of climate change.

    Key Concepts

    Climate Whiplash

    • Rapid shift between extreme wet and dry conditions.
    • Wet periods promote vegetation growth, while subsequent heatwaves dry it into highly flammable fuel.

    Pyrocumulonimbus (pyroCb) Clouds

    • Fire-generated thunderstorm clouds formed by intense wildfire heat.
    • Can reach the stratosphere, generate lightning and strong winds, creating new fires.

    Sixth-Generation Wildfires

    • Extremely intense wildfires driven by heatwaves and prolonged drought.
    • Difficult to control using conventional firefighting methods.

    Why are Europe’s Wildfires Becoming More Severe?

    • Climate whiplash increases fuel availability.
    • PyroCb clouds spread fires through lightning and erratic winds.
    • Rural land abandonment has increased combustible vegetation.
    • Rising temperatures and prolonged droughts intensify fire conditions.

    Impacts

    • Loss of lives, forests and biodiversity.
    • Declining air quality across large regions.
    • Increased carbon dioxide (CO₂) emissions, accelerating climate change.
    • Annual economic losses of about €2.5 billion in the European Union (EU).

    [2026] Consider the following statements with reference to India’s response to climate change:

    I. India’s LT-LEDS is a crucial tool for achieving net-zero emissions by 2070.

    II. India’s BUR-4 (Dec 2024) recorded ~8% decrease in GHG emissions in 2020 over 2019.

    III. Climate-resilient development necessarily depends on quick and short-term achievement of emission reduction targets.

    Which of the following relationships is/are correct?

    1. Statement I is empirically supported by statement II

    2. Statement III contradicts the approach implicit in statement I

    3. Statement I and statement III together establish the premise of long-term sustainability

    (a) 1 only

    (b) 1 and 2

    (c) 2 and 3

    (d) 3 only

  • Parliamentary panel questions Meta and threatens Section 79 safe harbour

    Why in the News?

    The Parliamentary Standing Committee on Communications and Information Technology questioned Meta over the temporary removal of the Prime Minister’s Facebook post and warned of withdrawing safe harbour protection under Section 79 of the Information Technology Act, 2000.

    What is Section 79?

    • Grants safe harbour protection to intermediaries, shielding them from liability for third-party content.
    • Applies only if intermediaries:
      • Follow due diligence requirements.
      • Do not create or modify user content.
      • Comply with lawful government or court directions.

    Who is an Intermediary?

    • An entity that stores or transmits third-party content, such as Social media platforms, Internet Service Providers (ISPs), and Search engines
    • Hosts user-generated content without being its author.

    Key Findings

    • A Prime Ministerial Facebook post was temporarily restricted.
    • The Parliamentary Committee sought:
      • An explanation and audit trail from Meta.
      • Assurance against future recurrence.
    • The issue revived the debate on intermediary liability and platform accountability.

    Challenges

    • Withdrawal of safe harbour may encourage excessive content removal.
    • Risks chilling free speech and legitimate dissent.
    • Platforms cannot realistically pre-screen billions of posts.
    • Balancing accountability with freedom of expression remains difficult.

    Back2Basics

    • Information Technology Act, 2000: Governs cyber laws and intermediary liability in India.
    • IT Rules, 2021: Prescribe due diligence obligations for intermediaries.
    • Shreya Singhal v. Union of India (2015): Supreme Court held that content takedown under Section 79 generally requires a court order or government notification.

    [2017] In India, it is legally mandatory for which of the following to report on cyber security incidents?

    1. Service providers

    2. Data Centres

    3. Body corporate.

    Select the correct answer using the code given below:

    (a) 1 only

    (b) 1 and 2 only

    (c) 3 only

    (d) 1, 2 and 3.

  • Why has West Bengal cleared land for the BSF now?

    Why in the News?

    The West Bengal Cabinet approved the transfer of 31.905 acres of land at nine locations and 1.53 acres for three new Border Outposts (BOPs) to the Border Security Force (BSF) for border fencing and security infrastructure.

    Why Does the Centre Need State Approval for Border Fencing?

    • Although border security is a Union subject, the land on which fencing and Border Outposts are built is administered by the State Government under State List Entry 18.
    • Therefore, the Centre must rely on the State for:
      • Transfer of government land.
      • Acquisition of private land.
      • Revenue and environmental clearances.
      • Compensation and rehabilitation.
      • Support from district administration.

    Centre-State Disputes over BSF Jurisdiction

    • In 2021, the Centre extended the BSF’s jurisdiction from 15 km to 50 km inside Punjab, West Bengal, and Assam (while reducing it in Gujarat).
    • Some States opposed the move, citing federalism and State autonomy.
    • 2024 Supreme Court Judgment: Upheld the Centre’s notification, holding that it does not dilute the powers of State Police and is intended to strengthen border security.

    What is the Border Security Force (BSF)?

    • Border Security Force (BSF): A Central Armed Police Force (CAPF) under the Ministry of Home Affairs (MHA).
    • Guards India’s borders with Pakistan and Bangladesh during peacetime.
    • Prevents cross-border crimes and manages Border Outposts (BOPs).

    Key Highlights

    • Land transferred for border fencing and construction of three new BOPs.
    • Implements the Calcutta High Court’s January 2026 directive.
    • Aims to strengthen border surveillance and security.

    Why is West Bengal Important?

    • Shares 2,216.7 km of the 4,096.7 km India-Bangladesh border (about 54%), the longest among all States.
    • Around 569 km of the border remains unfenced, making it crucial for completing the national fencing project.

    Key Agreements

    • Coordinated Border Management Plan (CBMP), 2011: Framework for coordination between BSF and Border Guard Bangladesh (BGB).
    • Land Boundary Agreement (LBA), 2015: Resolved enclave exchange and adverse possession issues between India and Bangladesh.

    Challenges

    • Riverine and marshy terrain limits conventional fencing.
    • Land acquisition and environmental clearances delay projects.
    • Border communities face livelihood and mobility concerns.
    • Persistent issues of smuggling, illegal migration and human trafficking.

    [2016, GS3, 12.5 marks] Border management is a complex task due to difficult terrain and hostile relations with some countries. Elucidate the challenges and strategies for effective border management.
    [2026] Which of the following with reference to Indian States is/are not correct?
    1. Uttar Pradesh shares its boundary with the highest number of other Indian States.
    2. Rajasthan shares the longest international border among all Indian States.
    3. Sikkim is the only State that shares its boundary with just one other Indian State.
    Select the answer using the code given below :

    [A] 1 only

    [B] 1 and 2

    [C] 2 and 3

    [D] 3 only

  • Lok Sabha passes the Supreme Court (Number of Judges) Amendment Bill 2026

    Why in the news?

    The Lok Sabha passed the Supreme Court (Number of Judges) Amendment Bill, 2026, increasing the sanctioned strength of the Supreme Court of India from 34 to 38 judges (including the Chief Justice of India (CJI)) to address rising case pendency.

    Key Provisions

    • Increased Strength: Raises the sanctioned strength from 34 to 38 judges.
    • Replaces Ordinance: Converts the earlier ordinance into permanent law.
    • Objective: Improve disposal of cases and reduce judicial backlog.

    Constitutional Basis

    • Article 124: Empowers Parliament to determine the number of Supreme Court judges by law.
    • Governing Law: Supreme Court (Number of Judges) Act, 1956.

    Why is the Amendment Needed?

    • Over 92,000 cases were pending in the Supreme Court (as of 1 January 2026).
    • Growing gap between institution and disposal of cases.
    • Increasing litigation has added pressure on the Court.

    Challenges

    • Sanctioned posts must be filled promptly.
    • Delays in the Collegium appointment process.
    • More judges require additional infrastructure and staff.
    • Procedural delays and frequent adjournments remain unresolved.

    Back2Basics

    • Article 124: Establishes the Supreme Court and empowers Parliament to fix its strength.
    • Original Strength (1950): Chief Justice + 7 judges.
    • Appointment: By the President of India under the Collegium System.
    • Retirement Age: 65 years.
    • Evolution: Three Judges Cases
      • First Judges Case (1981): Executive had primacy in appointments.
      • Second Judges Case (1993): Introduced the Collegium System; judiciary gained primacy.
      • Third Judges Case (1998): Expanded the Collegium to the CJI plus four senior-most Supreme Court judges.

    [2014] The power to increase the number of judges in the Supreme Court of India is vested in?

    (a) The President of India

    (b) The Parliament

    (c) The Chief Justice of India

    (d) The Law Commission

  • New real-time national portal for organ transplants

    Why in the News?

    The National Organ and Tissue Transplant Organisation (NOTTO) has launched a real-time national portal and mobile application to streamline organ transplantation by creating a unified waiting list, enabling national swap donations, and improving transparency.

    Key Features

    • National Waiting List: Creates hospital, State, regional and national waiting lists.
    • Real-time Allocation: Enables transparent organ allocation across India.
    • National Swap Donor Pool: Matches incompatible donor-recipient pairs across the country.
    • Aadhaar-linked Organ Pledge: Links donor pledges with Aadhaar for better verification.
    • Outcome Tracking: Hospitals upload follow-up data to monitor transplant outcomes.

    How does the Portal Work?

    • Patients are registered by authorised transplant hospitals.
    • Allocation follows the sequence: Hospital → State → Regional → National pool.
    • Kidney Allocation: Donor hospital retains one kidney and sends the other to the nearest matching government hospital.
    • Supports super-urgent transplant requests through the portal.

    Significance

    • Improves transparency and equity in organ allocation.
    • Expands the pool for compatible donor matching.
    • Reduces dependence on manual coordination.
    • Creates a national transplant database for better monitoring.

    Challenges

    • Different States follow different organ allocation policies.
    • NOTTO cannot mandate uniform allocation rules.
    • Low deceased organ donation rates remain a major constraint.
    • Portal effectiveness depends on accurate hospital data entry.

    Back2Basics

    • NOTTO: National Organ and Tissue Transplant Organisation.
    • Parent Body: Directorate General of Health Services (DGHS), Ministry of Health and Family Welfare (MoHFW).
    • Legal Basis: Transplantation of Human Organs and Tissues Act, 1994 (THOTA).
    • Network: Works with Regional Organ and Tissue Transplant Organisations (ROTTOs) and State Organ and Tissue Transplant Organisations (SOTTOs).

    [2023] Consider the following statements:
    Statement-I: India’s public sector health care system largely focuses on curative care with limited preventive, promotive and rehabilitative care.
    Statement-II: Under India’s decentralized approach to health care delivery, the States are primarily responsible for organizing health services.
    Which one of the following is correct in respect of the above statements?

    [A] Both Statement-I and Statement-l are correct and Statement-II is the correct explanation for Statement-I.

    [B] Both Statement-I and Statement-II are correct and Statement-is not the correct explanation for Statement-l.

    [C] Statement-l is correct but Statement-II is incorrect.

    [D] Statement-I is incorrect but Statement-Il is correct.

  • Proof of life: reworking the law on delayed birth and death registration

    Why in the News?

    The Lok Sabha passed the Registration of Births and Deaths (Amendment) Bill, 2026, amending the Registration of Births and Deaths Act, 1969. It requires a Judicial Magistrate’s order for registration of births or deaths delayed by more than two years.

    Key Provisions

    • Judicial Approval: Delayed registration beyond 2 years requires approval from a Judicial Magistrate.
    • Existing Process Retained: Delays up to 2 years continue to require approval from an Executive Magistrate.
    • Objective: Strengthen verification and prevent fraudulent birth or death registrations.

    Why was the Amendment Needed?

    • The 2023 amendment made the birth certificate the primary proof of date and place of birth for: School admissions, Passports, Aadhaar, Voter rolls, Driving licences, and Government jobs
    • Higher importance of birth certificates increased the risk of fraudulent registrations.

    Significance

    • Enhances authenticity of delayed registrations.
    • Supports reliable digital civil registration records.
    • Reduces misuse of birth certificates for identity fraud.

    Challenges

    • Judicial process may increase costs and delays for genuine applicants.
    • Remote and vulnerable populations may face greater difficulty.
    • Adds workload to the lower judiciary.
    • No clear evidence supporting the two-year threshold.

    Back2Basics

    • Registration of Births and Deaths Act, 1969: Makes registration of every birth and death compulsory.
    • Registrar General of India (RGI): Nodal authority under the Ministry of Home Affairs (MHA).
    • Concurrent List: Both Parliament and State Legislatures can legislate on registration.
    • 2023 Amendment: Birth certificate became the primary document for proving date and place of birth.

    [2018] Consider the following statements:
    1.Aadhaar can be used as proof of citizenship and domicile.
    2.Once issued, the Aadhaar number cannot be deactivated or omitted by the issuing authority.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • Why lab-grown diamonds are a sustainable alternative to mined stones

    Why in the News?

    With natural diamond reserves declining and concerns over environmental damage, conflict diamonds and forced labour, India is promoting Lab-Grown Diamonds (LGDs) through the India Centre for Lab-Grown Diamond (InCent-LGD) at Indian Institute of Technology (IIT) Madras.

    What is the Kimberley Process?

    • Kimberley Process Certification Scheme (KPCS): An international certification system launched in 2003 to prevent conflict (blood) diamonds from entering global trade.
    • Limitation: Difficult to trace the geographic origin of diamonds, enabling smuggling.

    Significance of Lab-Grown Diamonds

    • Lower water, land and environmental footprint.
    • Fully traceable and ethically sourced.
    • More affordable than mined diamonds.
    • Used in jewellery, cutting tools, drilling, semiconductors and quantum computing.

    India’s Initiative

    • Union Budget 2023-24 announced support for indigenous LGD production.
    • InCent-LGD established at IIT Madras with a ₹243 crore grant from the Ministry of Commerce and Industry.
    • Focuses on developing indigenous diamond seeds, machinery and manufacturing technology.

    [2018] Which one of the following foreign travellers elaborately discussed about diamonds and diamond mines of India?

    [A] Francois Bernier

    [B] Jean-Baptiste Tavernier

    [C] Jean de Thevenot

    [D] Abbe Barthelemy Carre