Daily Quiz 22 September 2023

Explanation:

• Option (4) is correct: Earlier large corporates refer to companies that have an outstanding loan of Rs 100 crore or above, with a credit rating of ‘AA’, and have their debt securities listed on a stock exchange. But recently, the Securities Exchange Board of India has increased the monetary threshold for defining large corporates to Rs. 500 crores from the current level of Rs. 100 crores. SEBI has brought new norms for large corporates to provide them with more flexibility on borrowing from the debt market. SEBI has removed the penalty of 0.2% on large corporates that do not meet the mandate of raising at least 25% of their incremental borrowings from the debt market. Instead, SEBI will now introduce a system based on “incentives and moderated disincentives”.

Explanation:

• Statement 1 is correct: Prisons serve as correctional homes that are designed to punish and rehabilitate individuals who have been convicted of crimes. It is a State subject under List-II of the Seventh Schedule in the Constitution. The management and administration of Prisons falls exclusively in the domain of the State Governments, and is governed by the Prisons Act, 1894 and the Prison Manuals of the respective State Governments.
• Statement 2 is incorrect: They are an integral part of the criminal justice system (CJS) that deals with crime prevention, investigation, prosecution, punishment and correction. The Ministry of Home Affairs provides regular guidance and advice to States and UTs on various issues concerning prisons and prison inmates.

Explanation:

• Statement 1 is incorrect: The Securities Exchange Board of India (SEBI) is a statutory body in accordance with the Securities and Exchange Board of India Act, 1992.
• Statement 2 is incorrect: The headquarter of SEBI is located in Mumbai and four other regional offices are in New Delhi, Kolkata, Chennai, and Ahmedabad.
• Statement 3 is correct: The SEBI is the regulatory authority for primary market, secondary market, mutual funds and foreign institutional investment in India.
• Statement 4 is correct: Power and Functions of SEBI:
  • It is a quasi-legislative and quasi-judicial body that can draft regulations, conduct inquiries, pass rulings, and impose penalties.
  • Protecting the interests of Indian investors in the securities market and promote its development.
  • SEBI also regulates the tasks entrusted to depositors, credit rating agencies, custodians of securities, foreign portfolio investors, and other participants.
  • It educates investors about securities markets and their intermediaries.
  • It prohibits fraudulent and unfair trade practices within the securities market and related to it.

Explanation:

• Statement 1 is correct: Telecom Regulatory Authority of India (TRAI) is a statutory body established in 1997 through the Telecom Regulatory Authority of India Act, 1997. It aims to regulate telecom services, including fixation/revision of tariffs for telecom services.
• Statement 2 is incorrect: Chairperson, two whole-time members and two part-time members, all of which are appointed by the Government of India. The chairperson and the members of TRAI are appointed for three years or until they attain the age of 65 years, whichever is earlier.
• Statement 3 is correct: TRAI is not a completely independent telecom regulator. Under section 25 of the Act, the government has the power to issue directions which are binding on TRAI. Moreover, the recommendations of the TRAI are not binding upon the Central Government.

Explanation:

• Statement 1 is incorrect: Telecom Disputes Settlement and Appellate Tribunal (TDSAT) was set up to adjudicate any dispute between a licensor and a licensee, between two or more service providers, between a service provider and a group of consumers, and to hear and dispose of appeals against any direction, decision or order of TRAI. The Tribunal consists of a chairperson and two Members appointed by the Central Government.
• Statement 2 is correct: The Chairperson of TDSAT should be or should have been a Judge of the Supreme Court or the Chief Justice of a High Court.
• Statement 3 is incorrect: A Member of TDSAT should have held the post of Secretary to the Government of India or any equivalent post in the Central Government or the State Government for a period of not less than two years or a person who is well versed in the field of technology, telecommunication, industry, commerce or administration.