Banking, Financial and Economic Awareness of 17 January 2020

1. CDSCO identifies medicines failing quality tests

• Central Drugs Standard Control Organization (CDSCO) has identified forty-seven medicines that failed quality tests.
• Some of these medicines are Udiliv 300, Ferikind-M Suspension and Lorvas SR.
• Abbott India manufactures Udiliv 300 which is used for the treatment of gallstones. Udiliv 300 has failed identification tests.
• Ferikind-M Suspension is an iron supplement. It is manufactured by Mankind Pharma. Ferikind-M Suspension failed assay tests as folic acid was less than the approved amount.
• Lorvas SR is manufactured by Torrent Pharma which is used for the treatment of high blood pressure. It failed dissolution tests. Dissolution tests measure the solubility of a drug in the body.
• Central Drugs Standard Control Organization (CDSCO):
  • It comes under the Ministry of Health & Family Welfare.
  • It is having six zonal offices and seven laboratories all over India.

2. Fiscal deficit in the first eight months of financial year 2019-20 more than target

• As per the India Budget Preview: Loosening the purse report released by DBS bank, the fiscal deficit in the first eight months of the financial year 2019-20 was 15 % more than the target of keeping it at 3.3% of GDP.
• The report says that gross tax revenue from the first day of the current fiscal year till November increased by 0.8%.
• The report says that the announcement for the sale of five PSUs is important. But, money from the sale will be received in FY21.
• From the sale of PSUs, the government collected Rs 180 billion by November of FY20. But, the government has fixed the target of collecting Rs 1.05 trillion (0.5 percent of GDP).
• DBS Bank:
  • It was earlier known as The Development Bank of Singapore Limited.
  • CEO: Piyush Gupta

3. SEBI declares NSE officials not guilty in NSE dark fiber case

• SEBI has found that Ravi Narain and other NSE officials are not guilty in case of allowing some stock brokers to use Point to Point (P2P) connectivity using dark fiber (extra and unused fiber-optic cable).
• Several officials of NSE were accused of allowing P2P dark fiber connectivity from Sampark Infotainment Private Ltd, which was not an empanelled service provider.
• As a result, stockbrokers established P2P connectivity from the colocation facility of NSE and their turnover increased substantially in April-August 2015.  
• National Stock Exchange of India Limited (NSE):
  • Location: Mumbai
  • Founded: 1992
  • MD & CEO: Vikram Limaye

4. Imerys Group acquires thermal insulation business of Hyderabad Industries Ltd (HIL)

• Imerys Group has acquired the thermal insulation business of Hyderabad Industries Ltd, which is a part of the CK Birla Group.
• In thermal insulation business, calcium silicate insulation products are produced, sold and exported.
• The acquisition deal was finalized for ₹80 crores. Centrum Capital and Singhi Advisors acted as financial advisor to HIL and Calderys India Refractories, a subsidiary of Imerys.
• Imerys Group is a France-based company that specializes in the extraction and processing of minerals.

Multiple Choice Questions (MCQs)

1. Which of the following companies manufactures Udiliv 300, a medicine that was recently reported as one of the 47 drugs failing quality tests?

1. Abbott India
2. Mankind Pharma
3. Torrent Pharma
4. Zuventus Healthcare
5. Maxmed Lifesciences

2. Who among the following published the India Budget Preview: Loosening the purse report that fixed fiscal deficit in the first eight months of the financial year 2019-20 at 15 % more than the government's target?

1. Deloitte India
2. DBS Bank
3. Standard & Poor's
4. Moody's
5. FSDC

3. Recently, SEBI has found that NSE officials were not guilty in case NSE dark fiber case. These officials were accused of allowing stockbrokers P2P connectivity using dark fiber from which of the following?

1. Starnet Plus Internet Services Pvt. Ltd
2. Dnetworks Internet Services Pvt. Ltd
3. Sampark Infotainment Private Ltd
4. MNR Broadband Services Pvt. Ltd
5. GTPL Hathway Pvt. Ltd

4. Which of the following companies has acquired the thermal insulation business of Hyderabad Industries Ltd (HIL)?

1. Centrum Capital
2. CK Birla Group
3. EPC Group
4. Imerys Group
5. Spotless Pvt. Ltd

Correct Answers:

1. A
2. B
3. C
4. D