Daily Current Affairs for UPSC – 14 April 2023

Daily Current Affairs for UPSC 2023

Q) Recently seen in news, the term ‘Dabba Trading’ is best related to which one of the following?

1. It is the practice of trading of in rural areas.
2. It is the development of trading practices in remote areas.
3. An informal trading practice outside purview of stock exchange 
4. A small group which performs insider trading in stock exchange

Daily Current Affairs for UPSC – 13 April 2023

Explanation:

• Option (3) is correct: Dabba Trading is an informal trading practice that occurs outside the purview of the stock exchanges. It involves traders betting on stock price movements without carrying out a real transaction to take physical ownership of a particular stock as is done in an exchange. It can be equated to gambling centered around stock price movements. In legal trading, it is mandatory for investors to open a demat (dematerialised) account with a broker to buy and sell stocks on the stock exchanges. The main purpose of dabba trade is to stay outside the purview of the regulatory mechanism, and hence, transactions are carried out using cash and the mechanism is operated using unrecognized software terminals. Kaccha (rough) records, sauda (transaction) books, challans, DD receipts, cash receipts alongside bills/contract notes are used as proof of trading. ‘Dabba trading’ has been recognised as an offence under Section 23(1) of the Securities Contracts (Regulation) Act (SCRA), 1956. Conviction can attract imprisonment for a term extending up to 10 years or a fine up to Rs 25 crore, or both. National Stock Exchange (NSE) has issued notices against entities involved in ‘dabba trading’.

Q) Consider the following statements about Bhimrao Ambedkar:

1. He founded the Independent Labour Party soon after independence.
2. He established ‘Mooknayak’ and ‘Prabuddha Bharat’ to work toward advancement of Dalit rights.
3. He was recently awarded the Bharat Ratna

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 1, 2 and 3

Explanation:

• Statement 1 and 3 are incorrect: Bhimrao Ramji Ambedkar, popularly known as Babasaheb Ambedkar, was born on April 14, 1891, in the town of Mhow, Madhya Pradesh. He founded the Independent Labour Party in 1936. He contested the 1937 Bombay elections through the party. In 1946, he contested the Constituent Assembly of India elections but lost. Later, he was elected to the Constitution Assembly of Bengal. Dr. Ambedkar was an expert in the subject of the Constitution, having studied the Constitutions of 60 countries. He became the first Law Minister of India after independence. On August 29, 1947, he was elected Chairman of the Constitution Drafting Committee. As Chairman, he oversaw the drafting of the Indian Constitution. He is known as the Father of the Indian Constitution, for his instrumental role in shaping the country’s future and cementing its democratic values. He was conferred the Bharat Ratna posthumously in 1990.
• Statement 2 is correct: He founded the People’s Education Society in 1945 to promote education among all sections of society. He also played a crucial role in the establishment of the University of Mumbai and worked to make education accessible to Dalits and other marginalized communities. He strongly believed in equality and fought for women’s rights, including education, voting, marriage, and independence. In the defense of Dalit rights, Ambedkar started five periodicals:
• Mooknayak (the leader of the dumb, 1920)’
• Bahishkrit Bharat (Ostracized India, 1924)
• Samta (Equality, 1928)
• Janata (The People, 1930)
• Prabuddha Bharat (Enlightened India, 1956)

Q) Which of the following are eligibility criteria to be recognized as a national party?

1. If it is recognized in four or more states.
2. If it gets at least 1 percent of the total number of seats in the last state assembly elections.
3. If it has won at least 10 percent of the total valid votes in the last Lok Sabha election from the state.

Select the correct answer using the code given below:

1. 1 only
2. 1 and 2 only
3. 2 and 3 only
4. 1, 2 and 3

Explanation:

• Statement 1 is correct: The Election Commission of India has recognised the Aam Aadmi Party (AAP) as a national party. As per the Election Commission’s Political Parties and Election Symbols 2019 handbook, a political party would be considered a national party:
• If it is recognised in four or more states; or
• If its candidates polled at least 6% of total valid votes in any four or more states in the last Lok Sabha or Assembly elections, and has at least four MPs in the last Lok Sabha polls; or
• If it has won at least 2% of the total seats in the Lok Sabha from not less than three states.
• Statement 2 and 3 are incorrect: ECI registers various political outfits and recognizes them as national and state or regional parties on the basis of their performance in the elections.

It reviews the poll performance of recognized parties after every State Assembly election or general election to the Lok Sabha. To be recognised as a state party, a party needs

• At least 6% vote-share in the last Assembly election and have at least 2 MLAs; or
• Have 6% vote-share in the last Lok Sabha elections from that state and at least one MP from that state; or
• At least 3% of the total number of seats or three seats, whichever is more, in the last Assembly elections; or
• At least one MP for every 25 members or any fraction allotted to the state in the Lok Sabha; or
• Have at least 8% of the total valid votes in the last Assembly election or Lok Sabha election from the state.

Q) Consider the following statements about ‘Foreign Exchange Management Act (FEMA)’:

1. The prior approval of the Reserve Bank of India is needed for the transfer of funds for external operations under FEMA.
2. The provisions of FEMA are also applicable to an office in India owned by a person living outside the country.
3. Under FEMA, the Government of India can restrict the transactions by an authorized individual from the capital account.

Which of the statements given above is/are not correct?

1. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 2 and 3 only

Explanation:

• Statement 1 is incorrect: Foreign Exchange Management Act (FEMA) 1999 is a law relating to foreign exchange, which aims to facilitate external trade and payments and promotes the orderly development and maintenance of foreign exchange market in the country. FEMA replaced the the Foreign Exchange Regulation Act (FERA), which had become incompatible, owing to pro-liberalization policies of the government. It made offences related to foreign exchange civil offenses. Under FEMA, no prior approval of RBI is need for external trade and remittances.
• Statement 2 is correct: The provisions of the act are applicable to the following person under Section 2(v) of FEMA, 1999:
• A person staying in India for more than 182 days during the course of the preceding financial year.
• Any person or body corporate registered or incorporated in India.
• An office, branch or agency in India owned or controlled by a person staying outside India.
• An office, branch or agency outside India owned or controlled by a person staying in India.
• Statement 3 is incorrect: The Central Government has the power to regulate the flow of payments to and from a person located outside India. All financial transactions regarding foreign securities or exchange cannot be performed without the approval of FEMA. They must go through “Authorised Persons.” The Government of India has powers to restrict an authorized individual from carrying out foreign exchange deals within the current account, in the general interest of the public. Reserve Bank of India has been empowered to impose restrictions on transactions from capital Account even though it is carried out via an authorized individual.

Q) With reference to ‘Uthiramerur Inscription’, consider the following statements:

1. It belongs to the reign of Rajendra Chola of the Imperial Chola dynasty.
2. The possession of immovable property was a necessary condition to contest elections in the local assembly.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Explanation:

• Statement 1 is incorrect but statement 2 is correct: At Tamil New Year celebration, Indian Prime Minister invoked Uthiramerur inscription. It is situated in Kancheepuram district, of Tamil Nadu. Uthiramerur inscription is dated around 920 A.D. in the reign of Parantaka Chola [907-955 A.D.]. It is a veritable written constitution of the village assembly that functioned 1,100 years ago. Village assembly of Uttaramerur drafted the constitution for the elections. The salient features were as follows:
• The village was divided into 30 wards, one representative elected for each.
• Specific qualifications were prescribed for those who wanted to contest.
• The essential criteria were age limit, possession of immovable property, and minimum educational qualification.
• Those who wanted to be elected should be above 35 years of age and below 70.
• Entire village, including infants, had to be present at the village assembly mandapa at Uttaramerur when elections were held.

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