Topic: Regulatory Bodies/ Financial institutions
1. SEBI forms Corporation Finance Investigation Department (CFID).
- SEBI has formed the Corporation Finance Investigation Department (CFID) to deal with cases of fraud, diversion of funds, bank loans and resources by company promoters.
- As of now, investigations and corporation finance departments separately deal with the frauds by company promoters.
- CFID will also deal with the cases where landers, management and other regulators initiated forensic audit. It will also examine allegations made against auditors and material mis-statement in financial statements.
- CFID will investigate those complex transactions, which involved resources of the listed entity and were done to benefit promoter/promoter group.
- CFID will also check misuse of resources like company land, guest houses or vehicles by promoters.
- Enforcement department had earlier found diversion of more than Rs 12,000 crore by DHFL promoters. Cox and Kings Promoters laundered over Rs 7,000 crore.
- SEBI has 20 departments. Some of them are Corporation Finance Department (CFD), Enforcement Department – 1 (EFD1) & Enforcement Department – 2 (EFD2).
- Securities and Exchange Board of India (SEBI):
- SEBI was set up in 1988. It was given statutory status in 1992. Its headquarters are located in Mumbai.
- In addition to a chairman, SEBI currently has four whole-time members and three part-time members. Ajay Tyagi is its chairman.
2. Draft Indian Ports Bill, 2020 provides for setting up of Maritime Port Regulatory Authority (MPRA).
- Draft Indian Ports Bill, 2020 has provided for setting up of Maritime Port Regulatory Authority (MPRA).
- Ministry of Ports, Shipping and Waterways has released the draft for public consultation. The draft bill has proposed a Competition Commission-like set-up to adjudicate on disputes.
- A bench will decide on disputes and complaints raised by an aggrieved person or referred by Central or State Government or State Maritime Board.
- Complaints should be about anti-competitive practices or abuse of a dominant position at scheduled ports.
- The bench will have a Member (Legal) of MPRA and one or more members nominated by the chairperson of MPRA. MPRA’s chairperson can also be a member of bench.
- Jurisdiction, powers and authority of the bench will be similar to that of a civil court. It will decide on the disputes as per the provisions of the Competition Act, 2002. Its powers will be same as the Competition Commission of India.
- The draft bill also has provisions for the National Port Policy and National Port plan. As per the draft bill, they will be prepared in consultation with Coastal State Governments, State Maritime Boards and other stakeholders.
- The draft bill will replace the Indian Ports Act, 1908. Government is also working on the development of a National Port Grid.
3. IFSCA removes certain restrictions on Alternative Investment Funds (AIFs) operating in IFSC.
- IFSCA removes certain restrictions on Alternative Investment Funds (AIFs) operating in International Financial Service Centre (IFSC).
- IFSCA has removed restrictions on leverage. Category I and II AIF operating in IFSC were not allowed to leverage. But, Category III AIF was allowed to leverage up to a permissible limit.
- Now, leverage would be permitted depending upon disclosure in the placement memorandum and consent of investors.
- International Financial Services Centres Authority (IFSCA) has also removed diversification norms depending upon appropriate disclosure in the placement memorandum.
- IFSCA has also allowed the creation of co-investment pools as a separate class of unit within the AIF.
- However, terms of segregated investments should not be more favourable to the common pool of capital.
- With regard to the question of whether the AIFs can act as a fund-of-fund, IFSCA has clarified that AIF in IFSC can make an investment in AIF in India.
- Alternative Investment Fund (AIF) is a fund that has the following defining features:
- It is established or incorporated in India.
- It is a privately pooled fund and collects fund from Indian or foreign investors.
- Categories of Alternative Investment Funds (AIFs): AIFs are divided into three categories given below.
- Category I AIFs: They make an investment in start-ups, small and medium-sized enterprises and venture capital.
- Category II AIFs: They include private equity funds and real estate funds.
- Category III AIFs: They include hedge funds.
4. RBI to establish Automated Banknote Processing Centre (ABPC) in Jaipur.
- RBI will establish an Automated Banknote Processing Centre (ABPC) in Jaipur.
- ABPC will carry out an automated receipt, storage and dispatch of currency notes. ABPC will destroy soiled banknotes in an automated manner.
- Along with the receipt, storage and dispatch, ABPC will carry out the processing of banknotes received from currency chests (CCs) and bank branches.
- From March 2001 to March 2019, the volume of banknotes in circulation and supply of banknotes by the presses has increased by three times and four times, respectively.
- RBI receives banknotes and coins from four printing presses and four mints at its 19 offices and distributes them to 3,300 currency chests (CCs). Scheduled banks operate CCs under an agency agreement with the RBI.
- Four mints of Government of India are located at Mumbai, Kolkata, Noida and Hyderabad. Four printing presses are located at Nashik (Maharashtra), Dewas (MP), Mysore (Karnataka) and Salboni (West Bengal).
5. Bharti AXA Life Insurance to support healthcare workers working against Covid-19.
- In partnership with Primero Skills & Training, Bharti AXA Life Insurance will support healthcare workers working against Covid-19.
- Bharti AXA Life Insurance has launched ‘GotYouCovered’ campaign and linked sharing of this campaign on social media with the number of face masks it will distribute to healthcare workers or students having registration with Primero Skills.
- With every share of ‘GotYouCovered’ on social media, one face mask will be given by Bharti AXA Life Insurance to one healthcare worker or student registered with Primero Skills.
- ‘GotYouCovered’ campaign aims at encouraging people to acknowledge the efforts of frontline healthcare workers against Covid-19.
- Bharti AXA Life Insurance is a joint venture company between Bharti Enterprises Limited and French insurance firm Axa.
6. Maximum number of targeted ransomware incidents reported from India and Australia in 2020.
- As per a new report by Kaspersky, the maximum number of targeted ransomware incidents in Asia Pacific region had been reported from India and Australia in 2020.
- In 2020, a targeted ransomware group had stolen or taken data from at least 61 entities from Asia region.
- Maze ransomware gang published stolen data in some cases. Maze ransomware was earlier called ChaCha ransomware. It was formed in 2019. Maze group has recently announced its closing.
- As per the report, Maze group had stolen data from at least 334 companies and organizations. Kaspersky Lab is a Russia based multinational cybersecurity and anti-virus provider.
- Ransomware is a type of malware in which the victim’s data is published or the victim is denied access to data until the payment of ransom.
- Reveton, CryptoLocker, CryptoWall, Fusob, WannaCry, Petya, Bad Rabbit and SamSam are some examples of ransomware.
Topic: Banking System
7. RTGS system is now available round the clock from 14 December 2020.
- The Real Time Gross Settlement System (RTGS) facility is now available 24x7 from 14 December 2020.
- RTGS is used for large-value fund transfers, while NEFT is used for fund transfers of up to Rs 2 lakh.
- RBI stated that it would give a boost to digital payments, and it will provide facilities to businesses and customers for the transfer of money round the clock.
- India will become one of the few countries to make RTGS available round the clock. In India, RTGS uses ISO 20022 format messaging standard for financial transactions.
- NEFT facility is already available 24x7 from December 2019.
- Real-time gross settlement (RTGS):
- It was started on 26 March 2004.
- It is a gross settlement based electronic payment system.
- In RTGS, transactions are completed individually or on a one-to-one basis.
- As per RBI, the minimum limit for transactions in RTGS is Rs 2 lakh.
- As per RBI, there is no upper or maximum limit for transactions in RTGS.
- At present, it handles 6.35 lakh transactions on a daily basis.