Daily Current Affairs for UPSC – 20 May 2023

Daily Current Affairs for UPSC 2023

Q) Which one of the following statements is not correct about Open Network for Digital Commerce (ONDC)?

1. It allows exchange of goods and services over digital networks.
2. ONDC is an initiative of the NITI Aayog.
3. ONDC is registered under Companies Act 2013.
4. It is neither an aggregator application nor a hosting platform.

Daily Current Affairs for UPSC – 19 May April 2023

Explanation:

• Option (1) is correct: Open Network for Digital Commerce (ONDC) aims at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. It is a not-for-profit organization that will offer a network to enable local digital commerce stores across industries to be discovered and engaged by any network-enabled applications.
• Option (2) is incorrect: Open Network for Digital Commerce (ONDC) is an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) to create an open-source platform that can enable a unified digital commerce ecosystem in the country.
• Option (3) is correct: Open Network for Digital Commerce (ONDC) was incorporated as a Section 8 (Non- Profit Organization under Companies Act 2013) company in December 2021. The Quality Council of India and Protean e-Gov Technologies Limited are its initial promoters.
• Option (4) is correct: It is neither an aggregator application nor a hosting platform, and all existing digital commerce applications and platforms can voluntarily choose to adopt and be a part of the ONDC network.

Q) Consider the following statements about Hydrogen Fuel:

1. Turquoise hydrogen is made using the process of methane pyrolysis.
2. Green hydrogen is produced mainly by using renewable electricity.
3. Green hydrogen can be transformed into synthetic gas and used for industrial purposes.

Which of the statements given above is/are correct?

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

Explanation:

• Statement 1 is correct: Turquoise Hydrogen is made using a process called methane pyrolysis to produce hydrogen and solid carbon. In the future, turquoise hydrogen may be valued as low-emission hydrogen.
• Statement 2 and 3 are correct: Green Hydrogen is defined as hydrogen produced by splitting water into hydrogen and oxygen using renewable electricity. The use of hydrogen in combustion has zero GHG emissions. Since, renewable energy is used in producing the Green Hydrogen, the entire chain (production to consumption) has very low GHG emissions (in contrast to Grey Hydrogen). Thus, Green Hydrogen is vital to Net Zero transition. Green Hydrogen can be transformed into electricity or synthetic gas and used for commercial, industrial or mobility purposes. Green Hydrogen can be produced from water which has abundant availability. It can be utilized to decarbonizes the heavy industry, long haul freight, shipping, and aviation sectors.

Q) With reference to Alternative Investment Funds (AIF), consider the following statements:

1. It is a publicly pooled fund used by governments to raise funds.
2. The Reserve Bank of India is responsible for regulating AIFs.
3. Angel funds as well as social venture funds are regarded as category 1 AIFs.

Which of the statements given above is/are correct?

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

Explanation:

• Statement 1 is incorrect: Alternative Investment Fund is a special investment category that differs from conventional investment instruments. It is a privately pooled fund. Generally, institutions and HNIs invest in AIFs as substantial investments are required.
• Statement 2 is incorrect: Securities and Exchange Board of India is the regulator of the Alternative Investment Fund. Alternative Investment Fund adheres to the SEBI (Alternative Investment Funds) Regulations, 2012.
• Statement 3 is correct: Category 1 Alternative Investment Fund invests in SMEs, start-ups, and new economically viable businesses with high growth potential. New-age entrepreneurial firms that require large financing during their initial days can approach Venture Capital Funds (VCF). Angel Funds invest in budding start-ups and are called angel investors. Social Venture Fund investing in a socially responsible business are social venture funds.

Q) Consider the following statements about Global Depository Receipts (GDRs):

1. GDRs can be used by domestic companies to be listed on the US stock exchange.
2. GDRs are accessible to businesses with a sound three-year financial track record.
3. Recently, various Tata consumer products were listed on the London Stock Exchange.

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 is incorrect but statement 2 is correct: Global Depository Receipts (GDRs) are financial instruments (a type of bank certificate) that represent shares in a foreign company, which are issued by a depositary bank and traded on the local stock exchanges in investors’ countries. The GDRs for the investors will be denominated in their home country currencies. GDRs can be used by domestic companies to be listed in any foreign stock exchanges except the US stock exchange. A company having a three-year sound financial record can get access to GDRs. They must be listed on the domestic stock exchange.
• Statement 3 is incorrect: Tata consumer products will be delisting its global depository receipts (GDRs) from the London Stock Exchange and Luxembourg Stock Exchange. The overseas depository bank provides GDRs in foreign currency. The GDRs are converted into shares and traded on the country’s stock exchange. The country’s investors can trade them just like any other security.

Q) With reference to Ordinance making power of President, consider the following statements:

1. An ordinance cannot be retrospective in nature.
2. The maximum duration of an ordinance issued by the President of India is six months.

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 and 2 are incorrect: Article 123 deals with the ordinance making power of the President. He can only promulgate the ordinance when both the houses or either of the house is not in session; circumstances occur where the President thinks it necessary to act without waiting for houses to assemble. For an ordinance to exist, it should be approved by the Parliament within six weeks of it being introduced. The maximum duration of an ordinance issued by the president of India can be 6 months and 6 weeks (In case of non-approval by the Parliament). An ordinance can be retrospective in nature. The power of ordinance making is not to be taken as a substitute for the legislative power. Only under special circumstances, ordinances can be rolled out. Ordinances cannot be used to revoke the fundamental rights of the citizens guaranteed by the Indian Constitution. The ordinance would also be declared null and void if both houses passed a resolution opposing it.

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