💥UPSC 2027,2028 Mentorship (May Batch) + Access XFactor Notes & Microthemes PDF

Type: Prelims Only

  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    What is ‘PrecivityAD2’ the new Alzheimer’s Blood Test?

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Alzheimer’s Disease (AD), PrecivityAD2 Test

    Why in the News?

    Researchers in Sweden have developed a new blood test, PrecivityAD2, which is about 90% accurate in identifying Alzheimer’s Disease (AD) in people experiencing cognitive symptoms.

    What is Alzheimer’s Disease (AD)?

    • Alzheimer’s disease is the most common type of dementia (loss of memory and cognitive abilities).
    • It is a progressive disease beginning with mild memory loss and possibly leading to loss of the ability to carry on a conversation and respond to the environment.
    • Alzheimer’s disease involves parts of the brain that control thought, memory, and language.
    • Brain cell connections and the cells themselves degenerate and die, eventually destroying memory and other important mental functions.
    • Memory loss and confusion are the main symptoms.
    • No cure exists, but medication and management strategies may temporarily improve symptoms.

    How PrecivityAD2 Test works?

    • The test measures a combination of two ratios within a blood sample:
    1. Plasma Phosphorylated-tau217 (p-tau217) to Not-Phosphorylated-tau21: The test measures the ratio of p-tau217 to non-phosphorylated tau21. Tau proteins are associated with the formation of neurofibrillary tangles in the brain, a hallmark of AD.
    2. Amyloid-beta (AB42 and AB40): The test also measures the ratio of two types of amyloid-beta proteins, AB42 and AB40. Amyloid plaques are another key pathological feature of AD.
    • Both tau and amyloid-beta proteins are considered pathological hallmarks of AD.

    Benefits of PrecivityAD2

    • Early Detection: PrecivityAD2 can diagnose AD at the early stage of mild cognitive impairment, enabling timely intervention and management.
    • Accurate Identification: With an accuracy rate of around 90%, the test provides reliable results, reducing the chances of misdiagnosis.
    • Non-Invasive: Unlike current diagnostic methods that involve complex PET scans or lumbar punctures, PrecivityAD2 requires only a simple blood draw.
    • Cost-Effective: The test is expected to be more affordable compared to expensive PET scans and cerebrospinal fluid analysis, making AD diagnosis more accessible.
    • Ease of Use: The blood test simplifies the diagnostic process, making it easier for primary care physicians to screen for AD.
    • Wider Reach: By reducing the complexity and cost of diagnosis, more patients can be tested, particularly in resource-limited settings.

    Significance of the Test

    • Standard of Care: PrecivityAD2 has the potential to become the standard first-line test for AD diagnosis, replacing more invasive and costly methods.
    • Support for Early Intervention: Early and accurate diagnosis allows for timely intervention, which is crucial for managing AD and improving patient outcomes.
    • Reduction in Misdiagnosis: The test’s high accuracy rate can help reduce the rates of misdiagnosis, particularly in primary care settings.

    Prevalence of Alzheimer’s Disease in India:

    • Alzheimer’s disease and dementia are significant public health concerns in India with a rapidly increasing prevalence rate.
    • According to CSIR-NIScPR, in 2019, there were 37 lakh active cases of Alzheimer’s disease and other dementias.
    • By 2050, dementia cases in India could exceed 11 crore as per projections from the Global Burden of Disease Study (GBDS).
    • The burden of non-communicable neurological disorders, including Alzheimer’s, more than doubled between 1990 and 2019.

    Feasibility for India:

    • In India, the current diagnostic tools for Alzheimer’s disease primarily include MRI and regular PET scans.
    • Advanced diagnostic tools like amyloid or Tau PET scans are not yet commercially available.
    • The introduction of PrecivityAD2 in India will require approval from the Drug Controller General of India (DCGI) and other relevant regulatory bodies.
  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    [pib] Schemes implemented by the WCD Ministry clubbed into 3 Verticals

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Schemes mentioned in the newscard

    Mains level: NA

    Why in the News?

    • For better implementation and efficient monitoring, all schemes implemented by the Ministry for the betterment of children have been consolidated into 3 verticals:
    1. Saksham Anganwadi & Poshan 2.0,
    2. Mission Shakti, and
    3. Mission Vatsalya.
    • These verticals aim to improve nutrition and health indicators, ensure safety and empowerment of women, and provide protection and welfare for children in difficult circumstances.

    Scheme Details:

    [1] Saksham Anganwadi & Poshan 2.0 (Mission Poshan 2.0)

    • The Anganwadi Services Scheme, POSHAN Abhiyaan, and Scheme for Adolescent Girls have been reorganized into three primary sub-verticals:
      1. Nutrition Support: For POSHAN and Adolescent Girls.
      2. Early Childhood Care and Education: Targeting children aged 3-6 years.
      3. Anganwadi Infrastructure: Upgrading and modernizing Saksham Anganwadis.
    • Key Features:
    • Fortified rice supplied to Anganwadi Centres to meet micronutrient requirements and control anemia among children.
    • Emphasis on the use of millets for Hot Cooked Meals at least once a week and Take Home Ration (THR) at Anganwadi centers.

    [2] Mission Shakti

    • Sambal: Focuses on the safety and security of women.
      • Includes schemes like One Stop Centres (OSC), Women Helpline (181-WHL), and Beti Bachao Beti Padhao (BBBP).
    • Samarthya: Aims at the empowerment of women.
      • Encompasses schemes like Pradhan Mantri Matru Vandana Yojana (PMMVY), Ujjwala, Swadhar Greh (renamed as Shakti Sadan), Working Women Hostel (renamed as Sakhi Niwas), National Hub for Empowerment of Women (NHEW), and National Creche Scheme (renamed as Palna).

    [3] Mission Vatsalya

    • Objective: To provide better outreach and protection for children in need of care in a mission mode.
    • Goals:
      1. Support and sustain children in difficult circumstances.
      2. Develop context-based solutions for the holistic development of children from varied backgrounds.
      3. Encourage innovative solutions through green field projects.
      4. Facilitate convergent action by gap funding if required.

    PYQ:

    [2016] Which of the following are the objectives of ‘National Nutrition Mission’?

    1. To create awareness relating to malnutrition among pregnant women and lactating mothers.

    2. To reduce the incidence of anaemia among young children, adolescent girls and women.

    3. To promote the consumption of millets, coarse cereals and unpolished rice.

    4. To promote the consumption of poultry eggs.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 1, 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 3 and 4 only

  • Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

    [pib] Approval of Major Port at Vadhavan, Maharashtra

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Vadhavan Port

    Why in the News?

    The Ministry of Ports, Shipping and Waterways has approved the project proposal for setting up a Major Port at Vadhavan, Palghar District of Maharashtra.

    About Vadhavan Port Project 

    • The project involves the development of core infrastructure, terminals, and other commercial infrastructure through a public-private partnership (PPP) mode.
    • The shareholding for the project is divided between the Jawaharlal Nehru Port Authority (74%) and the Maharashtra Maritime Board (26%).
      • The project aims to create a total capacity of 298 million metric tonnes per annum (MMTPA).
    • Trade routes facilitated:

    Existing Major Ports in India

    • India has 12 Major Ports: Chennai, Cochin, Deendayal (Kandla), Jawaharlal Nehru (Nhava Sheva), Kolkata, Mormugao, Mumbai, New Mangalore, Paradip, V.O. Chidambaranar (Tuticorin), Visakhapatnam, and Kamarajar Port Limited.
    • Private Sector participation is allowed in Major Ports for specific projects/berths/terminals through concession agreements for a specific period via open competitive bidding on revenue share/royalty between the Concessionaire and the Major Port Authority.
    • After the expiry of the concession period, the asset is handed over to the Port Authority.

    Significance of Major Ports

    • Major ports play a critical role in facilitating international trade and commerce.
    • They serve as gateways for the import and export of goods, significantly contributing to the country’s economy.
    • Ports generate substantial revenue for the government through customs duties, port fees, and other related charges.
    • Ports facilitate international collaboration and partnerships, enhancing diplomatic and trade relations with other countries.

    PYQ:

    [2016] Recently, which of the following States has explored the possibility of constructing an artificial inland port to be connected to sea by a long navigational channel?

    (a) Andhra Pradesh

    (b) Chhattisgarh

    (c) Karnataka

    (d) Rajasthan

  • Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

    States can directly buy Rice from FCI

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: FCI, Open Market Sale Scheme

    Why in the News?

    The Union Food and Consumer Affairs Minister announced that States can now directly purchase rice from the Food Corporation of India (FCI) under the Open Market Sale Scheme (Domestic) without participating in e-auctions.

    Key Announcements:

    Direct Rice Purchase of Rice by the States:

    • States can procure rice directly from FCI at ₹2,800 per quintal (excluding transportation cost), down from the earlier rate of ₹2,900 per quintal.
    • This new rate applies to rice procured over the stipulated 5 kg of free grain per individual under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

    Launch of Price Monitoring System (PMS) 4.0:

    • Minister Joshi launched the 4.0 version of the Price Monitoring System (PMS) mobile app.
    • The app, which previously monitored prices of 22 commodities daily, will now include 38 commodities.
    • The additional 16 food items are bajra (whole), jowar (whole), ragi (whole), suji (wheat), maida (wheat), besan, ghee, butter (pasteurised), brinjal, egg, black pepper, coriander, cumin seed, red chillies, turmeric powder, and banana.

     

    About Open Market Sale Scheme

    Details
    Purpose Enhance the supply of food grains, especially wheat, during the lean season to moderate open market prices, especially in deficit regions.
    Administered by Food Corporation of India (FCI)
    Method of Sale Surplus stocks of wheat and rice sold at pre-determined prices through e-auction on the National Commodity and Derivatives Exchange (NCDEX) platform.
    Participants Bulk consumers, private traders, State Governments, and Union Territory Administrations
    Auction Frequency Weekly
    Reserve Price Fixed by the government; bidders cannot quote less than the reserve price.
    Schemes under OMSS
    1. Sale of wheat to bulk consumers/private traders through e-auction.
    2. Sale of wheat to bulk consumers/private traders through e-auction by dedicated movement.
    3. Sale of Raw Rice Grade ‘A’ to bulk consumers/private traders through e-auction.

     

    PYQ:

    [2017] Which of the following is/are the advantage/advantages of implementing the ‘National Agriculture Market’ scheme?

    1. It is a pan-India electronic trading portal for agricultural commodities.

    2. It provides the farmers access to nationwide market, with prices commensurate with the quality of their produce.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Sports Authority of India (SAI) and the Board of Control for Cricket in India (BCCI)  

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: SAI, BCCI

    Why in the News?

    The Health Ministry has requested the Sports Authority of India (SAI) and the Board of Control for Cricket in India (BCCI) to implement measures to prevent surrogate advertisements of tobacco and alcoholrelated products by sportspersons.

    About Sports Authority of India (SAI)

    Details
    Establishment Founded in 1984 by the Ministry of Youth Affairs and Sports, Government of India
    Headquarters Jawaharlal Nehru Stadium Complex, New Delhi, India
    Objectives
    • Promote sports and physical education
    • Develop sports infrastructure
    • Identify and nurture sports talent
    • Conduct coaching and training programs
    Key Programs
    • National Sports Talent Contest Scheme (NSTC)
    • Special Area Games (SAG)
    • SAI Training Centres (STC)
    • Centres of Excellence (COE)
    • National Sports Academies (NSA)
    Major Facilities
    • Jawaharlal Nehru Stadium, New Delhi
    • Indira Gandhi Stadium Complex, New Delhi
    • Major Dhyan Chand National Stadium, New Delhi
    • Netaji Subhas National Institute of Sports (NSNIS), Patiala
    Notable Initiatives
    • Khelo India Program
    • Target Olympic Podium Scheme (TOPS)
    • Mission Olympic Cell (MOC)

     

    About Board of Control for Cricket in India (BCCI)

    Details
    Establishment Founded in December 1928
    Headquarters Cricket Centre, Wankhede Stadium, Mumbai, India
    Objectives
    • Promote and develop cricket in India
    • Organize domestic and international cricket matches
    • Identify and nurture cricket talent
    • Maintain cricket infrastructure and facilities
    Key Responsibilities
    • Selection of national cricket teams (men’s, women’s, and junior)
    • Organization of domestic cricket tournaments
    • Administration of Indian Premier League (IPL)
    • Conducting training and coaching programs
    Major Tournaments
    • Indian Premier League (IPL)
    • Ranji Trophy
    • Vijay Hazare Trophy
    • Syed Mushtaq Ali Trophy
    • Duleep Trophy
    • Irani Cup
    Funding and Support
    • Funded through sponsorships, broadcasting rights, and match revenues
    • Provides financial assistance and contracts to cricketers
    Reforms  Justice Lodha Committee: Result of the report submitted by the Justice Mukul Mudgal Committee after an investigation into the 2013 IPL betting scandal.

     

    PYQ:

    [2021] Consider the following statements in respect of the ICC World Test Championship:

    1. The finalists were decided by the number of matches they won.

    2. New Zealand was ranked ahead of England because it won more matches than England.

    Which of the above statements is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 and 2

  • Animal Husbandry, Dairy & Fisheries Sector – Pashudhan Sanjivani, E- Pashudhan Haat, etc

    [pib] Artificial Insemination in Cattle

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Rashtriya Gokul Mission and its Components

    Why in the News?

    • The Department of Animal Husbandry and Dairying is implementing the Rashtriya Gokul Mission.
      • The mission aims to develop and conserve indigenous bovine breeds, genetically upgrade the bovine population, and enhance milk production and productivity.

    About Rashtriya Gokul Mission:

    Details
    About
    • Initiated in December 2014.
    • Announced under the National Programme for Bovine Breeding and Dairy Development during the 12th Five Year Plan. 
    • Continued under Rashtriya Pashudhan Vikas Yojana (2021-2026) with a budget of Rs. 2400 crore.
    Nodal Ministry Ministry of Fisheries, Animal Husbandry, and Dairying
    Objectives
    • Enhance productivity of bovines and increase sustainable milk production using advanced technologies.            
    • Propagate the use of high genetic merit bulls for breeding.
    • Expand artificial insemination coverage by strengthening the breeding network and delivering services at farmers’ doorsteps.
    • Promote scientific and holistic conservation of indigenous cattle and buffalo rearing.
    Significance
    • Increased productivity, benefiting all cattle and buffaloes in India, with a focus on small and marginal farmers.
    • Empowers women, who perform over 70% of livestock farming tasks.
    Components
    1. Availability of High Genetic Merit Germplasm
    2. Extension of Artificial Insemination Network
    3. Development and Conservation of Indigenous Breeds
    4. Skill Development
    5. Farmers’ Awareness
    6. Research, Development, and Innovation in Bovine Breeding
    Implementing Agency State Implementing Agency (SIA) viz. Livestock Development Boards
    Significant Initiatives
    • Gopal Ratna Awards: For farmers maintaining the best herd of Indigenous Breed and practicing best management practices.          
    • Kamdhenu Awards: For best-managed Indigenous herd by Institutions/Trusts/ NGOs/ Gaushalas or best-managed Breeders’ societies.
    • Gokul Grams: Integrated cattle development centers focusing on promoting indigenous cattle rearing and conservation in a scientific manner.
    • National Kamdhenu Breeding Centre (NKBC): Centre of Excellence for the holistic and scientific development and conservation of Indigenous Breeds.
    • E-Pashu Haat: Web portal providing information on pet cattle and facilitating trading of bovine animals.
    • Nakul Prajnan Bazaar: E-market portal connecting breeders and farmers for quality, disease-free bovine germplasm.
    • Pashu Sanjivni: Animal wellness program providing animal health cards and unique identification, uploading data on the National Database.
    • Advanced Reproductive Technology (ART): Includes Assisted Reproductive Technique- IVF/Multiple Ovulation Embryo Transfer (MOET) and sex-sorted semen technique.
    • National Bovine Genomic Center for Indigenous Breeds (NBGC-IB): To be established for selecting breeding bulls of high genetic merit at a young age using highly precise gene-based technology.

    Key Initiatives for Artificial Insemination:

    • Multi-Purpose Artificial Insemination Technicians in Rural India (MAITRI): This initiative provides trained manpower for delivering quality artificial insemination services at farmers’ doorsteps.
    • Nationwide Artificial Insemination Programme: This programme extends artificial insemination coverage among bovines using semen from high genetic merit bulls of indigenous breeds.
    • Induction of High Genetic Merit Bulls: This program produces bulls with known genetic potential through progeny testing and pedigree selection, supplying these bulls to semen stations for quality semen dose production.
    • Strengthening of Semen Stations: Efforts are made to improve the quality of semen production by formulating minimum standard protocols and establishing a Central Monitoring Unit for evaluation and grading of semen stations.
    • Breed Purity Tests: To protect indigenous breeds from indiscriminate breeding, breed purity tests are conducted for all imported germplasm.
    • Guidelines for Import and Export of Bovine Germplasm: The Department has formulated guidelines to regulate the import of germplasm and prevent the ingress of exotic diseases, ensuring the safety and purity of bovine genetics within the country.

    PYQ:

    [2012] Consider the following crops of India:

    1. Cowpea
    2. Green gram
    3. Pigeon pea

    Which of the above is/are used as pulse, fodder and green manure?

    (a) 1 and 2 only

    (b) 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

    [2015] Livestock rearing has a big potential for providing non-farm employment and income in rural areas. Discuss suggesting suitable measures to promote this sector in India.

  • Modern Indian History-Events and Personalities

    85th death anniversary of Shaheed Udham Singh

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Udham Singh

    Why in the News?

    • On July 31, 1940, Indian revolutionary leader Udham Singh was executed at the Pentonville prison in London for killing Michael O’Dwyer, the former lieutenant governor of Punjab.

    Udham Singh (1899-1940) and his Contributions:

    Details
    Birth and Early Life Singh was born in Sunam in Punjab’s Sangrur district in 1899.
    Political Activism Became associated with the Ghadar Party while in the US, which was founded by Sohan Singh Bhakna in 1913 and headquartered in California.
    Purpose and Actions In 1934, Singh travelled to London to assassinate Michael O’Dwyer, the former Lieutenant Governor of Punjab during the 1919 Jallianwala Bagh massacre.
    Reason for Targeting O’Dwyer O’Dwyer had ordered Brigadier Reginald Dyer to Amritsar before the massacre, fearing a second Indian mutiny due to Hindu-Muslim unity and demonstrations.
    Assassination of O’Dwyer On March 13, 1940, Singh shot O’Dwyer at a meeting in Caxton Hall, London.
    Arrest and Execution Arrested immediately, held in Brixton prison, sentenced to death, and hanged on July 31, 1940, at Pentonville Prison.
    Legacy and Recognition
    • Regarded as a hero for avenging the Jallianwala Bagh massacre.
    • Gandhi termed it an “act of insanity”.
    • He symbolized Hindu-Sikh-Muslim unity by adopting the name ‘Ram Mohamed Singh Azad’ during his trial.
    Posthumous Honors
    • His remains were returned to India in 1974 and cremated in his village in Sunam.
    • His statue was installed at Jallianwala Bagh in 2018;
    • Udham Singh Nagar district in Uttarakhand is named after him.

     

    PYQ:

    [2014] The Ghadr (Ghadar) was a:

    (a) Revolutionary association of Indians with headquarters at San Francisco.

    (b) Nationalist organization operating from Singapore

    (c) Militant organization with headquarters at Berlin

    (d) Communist movement for India’s freedom with head-quarters at Tashkent

  • Innovations in Biotechnology and Medical Sciences

    ‘Zombies’ in our Genes helped us evolve      

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Endogenous Retroviruses and their significance in human evolution

    Why in the News?

    Research suggests that around 8% of the human genome is composed of Endogenous Retroviruses (ERVs) often referred to as ‘zombie’ regions.

    Retroviruses and Human Genome Integration

    • Most viruses can’t affect the human genome, but retroviruses are an exception.
    • Retroviruses can integrate and reshape the genomes of their hosts.
    • They have an RNA genome and can reverse-transcribe it to DNA, inserting it into the host’s genome.
    • This process is facilitated by the enzyme reverse transcriptase.
    • Discovered by Howard Temin and David Baltimore in 1971, this enzyme converts the virus’s RNA into a corresponding DNA sequence.
    • Historical Discoveries:
      • Viral causes of cancer were known even before the mechanism was understood.
      • In 1908, Oluf Bang and Vilhelm Ellermann discovered the viral cause of chicken leukosis.
      • In 1957, Ludwik Gross isolated a leukaemia-causing virus in mice.

    What are Endogenous Retroviruses (ERVs)?

    • ERVs are remnants of ancient viral infections that have integrated into the genome of the host species.
    • When these retroviruses infect germ cells (sperm or egg cells), their genetic material can be passed down to the next generation, becoming a permanent part of the host’s DNA.
    • Zombie Regions:
      • They refer to inactive viral sequences within the genome that no longer produce functional viruses but remain as embedded genetic fossils.
      • These regions are a result of retrovirus integration that has lost its ability to replicate and produce proteins, yet they persist in the host’s DNA.

    Evolutionary Significance of ERVs:

    • In the life cycle of a retrovirus, reverse-transcribed DNA is integrated into the host’s DNA with the help of integrase.
    • The viral DNA, called a provirus, hijacks human cells, turning them into virus-making factories.
    • Over tens of thousands of years, many retroviruses have left genomic elements in human genome, contributing to evolutionary processes.
    • Example:
      • Syncytins are genes thought to have descended from ERVs and are crucial for placental development. These genes originally came from viruses and were acquired during mammalian evolution.

    Their Contribution to Human Biology

    • ERVs are highly expressed in the placenta and may influence conditions like preeclampsia.
    • Researchers found that a particular RNA derived from an ERV is dysregulated in early-onset preeclampsia, suggesting it could be used as a biomarker for the condition.
    • ERVs play a role in cell-type differentiation during embryo development.
    • A protein called MERVL-gag is derived from an ERV. This transition is crucial for producing pluripotent stem cells capable of forming different cell types.
    • Researchers also found that a human ERV element LTR10 affects tumour formation in colorectal cancer.

    PYQ:

    [2021] Consider the following statements :​

    1. Adenoviruses have single-stranded DNA genomes whereas retroviruses have double-stranded DNA genomes.​

    2. Common cold is sometime caused by an adenovirus whereas AIDS is caused by a retrovirus.​

    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

  • Capital Markets: Challenges and Developments

    SEBI’s proposed measures to curb F&O speculation    

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Types of derivatives

    Mains level: Measures taken by SEBI related to derivatives

    Why in the news?

    SEBI has proposed a series of measures to curb speculative trading in the index derivatives segment due to concerns over the exponential increase in trading volumes in futures and options, especially among individual investors.

    What are the different types of derivatives?  

    Note: Derivatives are financial contracts deriving their value from an underlying asset such as stocks, commodities, or currencies.
    • Futures: 
        • Futures are standardized contracts obligating the buyer to purchase an underlying asset (such as stocks, commodities, or currencies) at a predetermined price on a specified future date. They are traded on exchanges, with daily settlements based on market price changes.
        • Futures contracts have margin requirements and are marked to market daily, ensuring liquidity and reducing credit risk.
    • Options: 
        • Options give the buyer the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a predetermined price within a specified time frame. Unlike futures, options are not obligatory; the buyer can choose whether to exercise the option.
        • Options can be traded on exchanges or over-the-counter (OTC) and require the payment of a premium by the buyer.
    • Forwards: 
        • Forward contracts are similar to futures but are privately negotiated agreements between two parties to buy or sell an asset at a future date and price. They are customizable and traded over the counter, which allows for flexibility but introduces counterparty risk.
        • Settlement occurs at the maturity date, and forward contracts do not have standardization like futures.
    • Swaps: 
      • Swaps involve the exchange of cash flows or financial instruments between two parties, often based on interest rates or currencies. Common types include interest rate swaps and currency swaps, which allow participants to manage exposure to interest rate fluctuations or gain access to different currencies.
      • Swaps are typically traded over the counter and can be tailored to meet the specific needs of the parties involved.

    What measures have the SEBI proposed?

    • Increase in minimum contract size for index derivatives from Rs 5-10 lakh to Rs 15-20 lakh, which can be further increased to Rs 20-30 lakh after six months.
    • Upfront collection of option premiums by brokers from clients.
    • Intraday monitoring of position limits for index derivative contracts by Market Infrastructure Institutions (MIIs).
    • Providing only one weekly options contract on a single benchmark index of an exchange.
    • Removal of calendar spread benefits on the expiry day for positions involving any of the contracts expiring on the same day.
    • Rationalisation of options strikes, with a uniform interval up to a fixed coverage of 4% near the prevailing index price and an increased interval as the strikes move away from the prevailing price.
    • Increasing margins on the expiry day and the previous day to address the issue of high implicit leverage in options contracts near expiry.

    Why have these measures been proposed?

    • The measures aim to enhance investor protection and promote market stability in the derivative markets, amidst concerns about an exponential rise in the volume of trade in the futures and options (F&O) segment, particularly by individual investors.
    • In the Union Budget 2024-25, the Securities Transaction Tax (STT) on F&O of securities was doubled to 0.02% and 0.1%, respectively, effective October 1, 2024.
    • Data shows that in FY 2023-24, 92.50 lakh unique individuals and proprietorship firms traded in the NSE index derivatives segment and cumulatively incurred a trading loss of Rs 51,689 crore, with only 14.22 lakh investors (about 15%) making a net profit.

    Way forward: 

    • Enhancing Investor Education and Awareness: To mitigate the risks associated with speculative trading in index derivatives, it is essential to implement comprehensive investor education programs.
    • Strengthening Regulatory Oversight and Compliance: SEBI should enhance its regulatory framework by implementing robust monitoring systems that ensure compliance with the proposed measures.
  • Pharma Sector – Drug Pricing, NPPA, FDC, Generics, etc.

    [pib] National Pharmaceutical Pricing Authority (NPPA)

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: National Pharmaceutical Pricing Authority (NPPA)

    Why in the News?

    The NPPA monitors the prices of scheduled as well as non-scheduled medicines under Drugs (Prices Control) Order, 2013 (DPCO, 2013), informed the Union Minister of State for Chemicals and Fertilizers.

    What are Scheduled and Non-Scheduled Formulations?

    [A] Scheduled Formulations:

    • Defined as formulations listed in Schedule-I of the Drugs (Prices Control) Order, 2013 (DPCO, 2013).
    • Ceiling prices of these formulations are revised annually based on the Wholesale Price Index (WPI) for the preceding calendar year.
    • National Pharmaceutical Pricing Authority (NPPA) is responsible for revising and notifying these prices.

    [B] Non-Scheduled Formulations:

    • Defined as formulations not included in Schedule-I of the DPCO, 2013.
    • Prices of these formulations can be increased by manufacturers, but the Maximum Retail Price (MRP) cannot be increased by more than 10% during the preceding 12 months.
    • NPPA also monitors the prices of non-scheduled formulations to ensure compliance.

    Action is taken against companies selling formulations at prices higher than permissible, and overcharged amounts are recovered.

    About National Pharmaceutical Pricing Authority (NPPA)

    • NPPA was set up as an independent regulator on August 29, 1997, for drug pricing and ensuring affordable access to medicines.
    • It is an attached office of the Department of Pharmaceuticals (DoP), Ministry of Chemicals & Fertilizers.
    • NPPA is not a Statutory or Constitutional Body.
    • It is responsible for implementing and enforcing the provisions of the DPCO.

    Functions of NPPA:

    • Fixation and revision of prices of ‘Scheduled’ drugs under Drug (Price Control) Orders.
      • Scheduled drugs (15% of the pharma market) are allowed an increase based on WPI.
      • Non-scheduled drugs (85% of the pharma market) are allowed an automatic 10% increase annually.
    • Monitoring and enforcement of drug prices.
    • Ensuring availability and accessibility of all medicines and medical devices, including non-scheduled drugs.
    • Undertaking or sponsoring studies on drug pricing.
    • Collecting and maintaining data on production, exports, imports, market share, and profitability of pharmaceutical companies.
    • Advising the Central Government on changes or revisions in drug policy.

    Back2Basics: Drugs (Prices Control) Order (DPCO)

    • The DPCO is an order issued by the Government of India under Sec. 3 of Essential Commodities Act, 1955 to regulate the prices of drugs.
    • The Order provides the list of price controlled drugs, procedures for fixation of prices of drugs, method of implementation of prices fixed by Govt., penalties for contravention of provisions etc.
    • Under the provisions of DPCO 2013, only the prices of drugs that figure in the National List of Essential Medicines (NLEM) are monitored and controlled by the regulator, the National Pharmaceutical Pricing Authority.
      • Essential medicines are those that satisfy the priority healthcare needs of the majority of the population.

     

    PYQ:

    [2019] How is the Government of India protecting traditional knowledge of medicine from patenting by pharmaceutical companies?