Topic: Committees/ Commissions/Taskforces
1. Finance Ministry reconstitutes GoM on GST for casinos, racecourse and online gaming.
- Finance Ministry has reconstituted Group of Ministers (GoM) on GST for casinos, racecourse and online gaming without changing its Terms of Reference (ToR).
- Meghalaya Chief Minister K Sangama will be convenor. The reconstituted GoM includes Finance Minister of Uttar Pradesh, Suresh Khanna and Finance Minister of Gujarat, Kanubhai Patel.
- Finance Minister of West Bengal Chandrima Bhattacharya is also part of the reconstituted GoM.
- The GoM was constituted on 24 May 2021. Its composition has been changed for the second time.
- GST rate for online games is 28% if they involved betting or gambling. However, GST rate on games not involving betting or gambling is 18%.
2. DRHP of LIC IPO filed with Securities and Exchange Board of India (SEBI) on 13 February 2022.
- Draft Red Herring Prospectus (DRHP) of Life Insurance Corporation of India (LIC) initial public offering (IPO) has been filed with SEBI on 13 February 2022.
- LIC has 66% market share in New Business Premiums. Its embedded value as on 30 September 2021 is Rs 5,39,686 crore (about INR 5.4 trillion).
- Indian Embedded Value (IEV) is a measure of future cash flows in life insurance companies.
- Government is likely to get over ₹1-lakh crore from LIC IPO. It plans to sell 5 % of its holding in LIC through the IPO.
- Up to 10% of LIC IPO issue size would be reserved for policyholders. Some portions will be reserved for anchor investors.
- As per DRHP, not more than 50% of the Net Offer shall be allocated to Qualified Institutional Buyers (QIBs). 5% of the portion available for QIBs shall be allocated to mutual funds only.
- Kotak Mahindra, Citi Bank, Axis Bank, Nomura, Bofa Securities, Goldman Sachs, ICICI Securities, JM Financial and JP Morgan will manage the IPO. Deloitte and SBI Caps are pre-IPO transaction advisors.
- Department of Investment and Public Asset Management (DIPAM) Secretary said that the IPO is 100% offer for sale (OFS) by the Government of India.
- DIPAM Secretary also said that no fresh issue of shares will be made by LIC. He said that for filing valuation about 31.6 cr shares are on offer representing 5% equity.
3. APEDA’s shipments account for 49% of overall shipments of agricultural products.
- Cereals and fresh horticulture items comprise 59% of APEDA’s share in agricultural product exports.
- Cereal preparations and miscellaneous processed items 23% of APEDA’s share in agricultural product exports. Animal products account for 18% of APEDA’s share.
- APEDA has been designated as secretariat for National Programme for Organic Production.
- It celebrated its 36th Foundation Day on 13 February 2022. It was founded in 1986.
- Export of agricultural products has increased from 0.6 billion dollar in 1986 to 20.67 billion dollar in 2020-21.
- The target that is given to APEDA in financial year 2021-22 is 23.7 billion dollars. More than 70 % of the target has been achieved till January this year.
- Agricultural Products Export Development Authority (APEDA):
- It is a government organization established in 1986. It is responsible for the promotion of the export of agro products.
- It works under the Ministry of Commerce and Industry. Its headquarters are located in New Delhi.
4. Debashis Mitra and Aniket Sunil Talati appointed as ICAI President and Vice President respectively.
- Debashis Mitra and Aniket Sunil Talati have been appointed as ICAI President and Vice President respectively for the year 2022-23.
- Mitra will now represent ICAI in committees set up by Indian government.
- He will represent ICAI in Government Accounting Standards Advisory Board (GASAB) and Audit Advisory Board. Both of them are constituted by the Comptroller & Auditor General (CAG) of India.
- He is also a board member of IRDAI, Insurance Advisory Committee and a member of SEBI’s Primary Market Advisory Committee.
- Institute of Chartered Accountants of India (ICAI):
- It was established in 1949 as a statutory body by the Chartered Accountants Act, 1949.
- It regulates the Chartered Accountancy profession in India. It is headquartered in New Delhi.
Topic: Indian Economy/Financial Market
5. IIP based industrial growth declines to 0.4% in December.
- Index of Industrial Production (IIP) based industrial growth declined to 0.4% in December 2021.
- This is the slowest growth in 10 months. In November 2021, IIP based industrial growth stood at 1.3%. In December 2020, it stood at 2.2%.
- As per data released by National Statistical Office (NSO), manufacturing output contracted by 0.1% in December 2021.
- Mining output in December 2021 increased by 2.6%. Power generation increased by 2.8% in December 2021.
- During April-December period of the current fiscal, IIP grew 15.2%. It contracted 13.3% in the same period last year.
- Eight core industries form 40.3% of the overall weight of the IIP. In March 2020, industrial production had contracted 18.7%. It contracted 57.3% in April 2020.
Topic: Regulatory Bodies/ Financial Institutions
6. Resolution professionals (RPs) to preserve electronic records for minimum eight years.
- Resolution professionals (RPs) have been mandated by IBBI to preserve electronic records which give a complete account of CIRP for minimum of 8 years.
- Physical copies of records that give a complete account of the corporate insolvency resolution process (CIRP) have to be preserved for minimum of 3 years.
- RPs cannot reject requests of Committee of Creditors (CoC) members (representing at least 33% voting rights).
- Insolvency and Bankruptcy Board of India (IBBI) has officially said that RPs have to place proposals moved by CoC members in the meeting of CoCs.
7. Government working to tighten MGNREGA scheme to plug leakages.
- Government is working to tighten Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme to plug leakages.
- Government has allocated Rs 73,000 crore for 2022-23. This is 25% lower than Rs 98,000 crore provided in Revised Estimate (RE) for the current fiscal.
- The allocation for next fiscal has been kept the same as the budget estimate (BE) for the fiscal ending in March 2022.
- In the last two years, the RE for the scheme has been higher than the BE significantly. Government allocated Rs 1.11 lakh crore in 2020-21. In 2014-15, the allocation used to be Rs 35,000 crore.
8. FPI limit to invest in local debt market increased from Rs 1 lakh crore to Rs 2.5 lakh crore.
- The limit for FPIs to invest in the local debt market has been increased from Rs 1 lakh crore to Rs 2.5 lakh crore under VRR with effect from April 1.
- Voluntary Retention Route (VRR) was introduced by RBI to assist Foreign Portfolio Investors (FPIs) in investing in debt markets of India.
- The investments under VRR are free from macro-prudential and other regulatory controls applicable to FPI investments in debt markets.
- Under VRR, FPIs are required to maintain a minimum percentage of their investments in India for the period of their choice.
- The increase in limit will attract additional funds and help prevent sudden shocks in the form of outflow of investment.
9. Union government reduces agricultural infrastructure development cess on crude palm oil.
- Union government has reduced agricultural infrastructure development cess on crude palm oil from 7.5% to 5%.
- The reduced rate has become effective from 13 February. It will help widen the gap between crude and refined oil.
- The validity of the new duty on crude palm oil (CPO) and other crude oils has been extended by Finance ministry to September 30.
- In December 2021, Centre had reduced import duty on RBD palmolein and RBD palm oil by 5.5%.