DNA 22Nd August 2019

Summary of Daily News Analysis - by Jatin Verma 22nd August, 2019

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Important News Articles (Taking Delhi/Noida edition as the base)

Page 1: Fossils show Kutch desert was once a forest Page 9: Children from shelter homes not finding work Page 10: Content management Page 11: Sacrificing liberty for national security Page 12: ED, CBI allege ‘illegal’ FIPB nod Page 13: Army HQ rejig gets Rajnath’s nod Page 14: Trump snubs Denmark over Greenland Page 15: SEBI simplifies norms for foreign investors Page 16: Centre to ease approval process for mining leases Page 16: RBI allows e-mandate for cards

Page 1: Fossils show Kutch desert was once a forest • The hot arid desert of Kutch was once a humid sub-tropical forest with a variety of birds, freshwater fish and possibly giraffes and rhinos, a team of Indian and French researchers has said. • Their conclusions are based on the discovery of vertebrate (with backbone) fossils from nearly 14 million years ago in a geological time period known as the Miocene.

• Fossils are the remains and traces of ancient organisms. A cluster of fossil ammonites, an extinct cephalopod.

• Fossil is the preserved remains or traces of organisms (plants, animals, etc) that lived in the distant past.

• The Miocene is the first geological epoch of the Neogene Period and extends from about 23.03 to 5.333 million years ago(Ma).

• An epoch, for the purposes of chronology and periodization, is an instant in time chosen as the origin of a particular calendar era. The "epoch" serves as a reference point from which time is measured.

Prelims 2019

Q) The word ‘Denisovan’ is sometimes mentioned in media in reference to (a) fossil of a kind of dinosaurs (b) an early human species (c) a cave system found in North-East India (d) a geological period in the history of Indian subcontinent

Page 9: ‘Children from shelter homes not finding work

• Nearly 40% of children who leave shelter homes after turning 18 are unable to complete schooling, 50% are unable to find paid work and almost 70% are unaware of their after-care entitlements under the law, finds a study conducted by an NGO across five States.

• The survey highlights the poor implementation of after-care provisions prescribed under the Juvenile Justice Act (JJ Act), 2015, for those who leave child care institutions on turning 18.

• The study found that 27% of children did not receive any form of after care support such as housing, medical facilities, legal awareness, or emotional support after they left their shelter home.

• A child care institution as defined under the JJ Act,2015, means Children Home, Open Shelter, Observation Home, Special Home, Place of Safety, Specialised Adoption Agency and a Fit Facility recognized under the Act for providing care and protection to children. Children in conflict with law are provided residential care and protection in Observation Homes.

Juvenile Justice (Care and Protection of Children) Act, 2015

 Change in nomenclature from ‘juvenile’ to ‘child’ or ‘child in conflict with law’, across the Act to remove the negative connotation associated with the word “juvenile”

 Inclusion of several new definitions such as orphaned, abandoned and surrendered children; and petty, serious and heinous offences committed by children;

 Clarity in powers, function and responsibilities of Juvenile Justice Board (JJB) and Child Welfare Committee (CWC); clear timelines for inquiry by Juvenile Justice Board (JJB); The Act mandates setting up Juvenile Justice Boards and Child Welfare Committees in every district. Both must have at least one woman member each.

 Special provisions for heinous offences committed by children above the age of sixteen years -Under Section 15, special provisions have been made to tackle child offenders committing heinous offences in the age group of 16-18 years.

 Separate new chapter on Adoption to streamline adoption of orphan, abandoned and surrendered children - To streamline adoption procedures for orphan, abandoned and surrendered children, the existing Central Adoption Resource Authority (CARA) is given the status of a statutory body to enable it to perform its function more effectively.

 Inclusion of new offences committed against children - Several new offences committed against children, which are so far not adequately covered under any other law, are included in the Act.

 These include: sale and procurement of children for any purpose including illegal adoption, corporal punishment in child care institutions, use of child by militant groups, offences against disabled children and, kidnapping and abduction of children.

 Mandatory registration of Child Care Institutions.

 Rehabilitation and social reintegration measures : Place of safety: Every State government is required to set up at least one ‘place of safety’ for the rehabilitation of such children.

 Under the institutional care, children are provided with various services including education, health, nutrition, de-addiction, treatment of diseases, vocational training, skill development, life skill education, counselling, etc to help them assume a constructive role in the society.

 The restoration and protection of a child shall be the prime objective of a Children‘s Home/ Specialized Adoption Agency/ Open Shelter.

 Any child leaving a child care institution on attaining 18 years of age may be provided with financial support.

Issues related to the act

 When is a Child tried as an Adult?

 The Act defines a child as someone who is under age 18.

 The Act distinguishes children in the age group 16-18 as a category which can be tried as adults if they are alleged to have committed a heinous offence — one that attracts a minimum punishment of seven years.

 It can be done after a preliminary inquiry, the Juvenile Justice Board feels that the crime was committed with full knowledge and understanding of the consequences.

 The Juvenile Justice Board (JJB) comprising a magistrate and two social workers can also rope in child psychologists for the purpose of making this assessment.

 The Act does not, however, make it mandatory for all children in this age group to be tried as adults.

 The amendment was proposed by the Ministry of WCD in the backdrop of the gang-rape of a woman inside a bus in Delhi in 2012, leading to her death.

 The UN Convention on the Rights of the Child requires all signatory countries to treat every child under the age of 18 years as equal.

 The provision of trying a juvenile as an adult contravenes the convention to which India is a signatory.

 The UNCRC was ratified by India in 1992 and the 2000 Act was consequently brought in to adhere to the standards set by the Convention.

 Children, these days, have access to technology and the crimes committed now are different from in the past.

 Hence, the government also has to ensure that sufficient training is given for police, lawyers, and child welfare officials on the new procedures

Mains question:

Q) Do you think the Juvenile Justice (Care and Protection of Children) Act and Rules are unfair to the victims of crime at the hands of juveniles? Critically comment.

Page 12: ED, CBI allege ‘illegal’ FIPB nod [GS3: Indian Economy]

• The main offence against Congress leader P. Chidambaram revolves around certain “illegal” approvals by the Foreign Investment Promotion Board during his tenure as former Finance Minister.

• Note: FIPB was an inter-ministerial body housed in the Department of Economic Affairs in the finance ministry responsible for processing foreign direct investment (FDI) proposals and recommending for approval to the finance minister and subsequently to the Cabinet Committee on Economic Affairs if the investment amount exceeded Rs3,000 crore.

• The Foreign Investment Promotion Board (FIPB) now is abolished.

• Now individual departments of the government have been empowered to clear FDI proposals in consultation with DIPP which will also issue the standard operating procedures for processing applications.

Mains question: Q) What do you understand by a shell company? Discuss the issues associated with these companies and government action against them.

Page 13: Army HQ rejig gets Rajnath’s nod [GS3: Security]

• The measures approved by defence minister include a separate Vigilance Cell under the Chief of the Army Staff (COAS) with tri-service representation, an umbrella organisation under the Vice-Chief of the Army Staff (VCOAS) for enhanced focus on human rights (HR) issues and relocation of 206 Army officers from the AHQ to formations/units in the field • At present, the vigilance function of the COAS is through multiple agencies and there is no single-point interface. • It was in 2018 that the Indian Army started four holistic studies, in the biggest exercise after independence to “transform itself into a more lethal force to meet the desired offensive and defensive capabilities of modern warfare by undergoing a complete transformation.” • The studies were on 1. restructuring the Army headquarters, 2. reorganising the Army, 3. a cadre review of officers 4. Enhancing the colour service of soldiers. • The current restructuring is to make the military lean and mean.

Page 14: Trump snubs Denmark over Greenland [GS1: World Geography]

• U.S. President cancels a planned visit to Copenhagen after his idea to buy Greenland was rejected. • Greenland, which is gaining attention from world powers, including China, Russia and the U.S., due to its strategic location and mineral wealth, is self-governing but underdeveloped and relies on Denmark for economic support. • It’s potential oil, gas and rare earth mineral reserves have attracted prospecting firms.

Map locations

Prelims 2014 Q) Consider the following countries: 1. Denmark 2. Japan 3. Russian Federation 4. United Kingdom 5. United States of America Which of the above are the members of the ‘Arctic Council ‘? a) 1, 2 and 3 b) 2, 3 and 4 c) 1, 4 and 5 d) 1, 3 and 5

Page 15: SEBI simplifies norms for foreign investors [GS3: Indian economy]

• Easing the regulatory framework for foreign portfolio investors, Sebi simplified KYC requirements for them and permitted them to carry out off-market transfer of securities. • FPIs would be classified into two categories instead of three. • FPI regulations have been redrafted based on the recommendation of a committee headed by former RBI deputy governor H R Khan. • The requirements for issuance and subscription of offshore derivative instruments (ODIs) have also been rationalised. • Note: Offshore Derivative Instruments (ODIs), also known as participatory notes (p-notes) are instruments used by the foreign investors to invest in India's securities markets without getting registered with the SEBI.Securities include shares, bonds and derivatives. • Among others, entities established in the International Financial Services Centre (IFSC) would be deemed to have met the criteria for FPIs.

What is an IFSC? • An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders. London, New York and Singapore can be counted as global financial centres.

What does an IFSC require? • IFSCs such as Dubai International Financial Centre and Shanghai International Financial Centre, which are located within SEZs, have six key building blocks: —Rational legal regulatory framework —Sustainable local economy —Stable political environment —Developed infrastructure —Strategic location —Good quality of life

New SEBI norms • To attract more overseas funds into the market, central banks that are not members of the Bank for International Settlements would be eligible for registration as FPIs.

Who are Foreign Portfolio Investors? • FPI stands for those investors who hold a short term view on the company, in contrast to Foreign Direct Investors (FDI). • FPIs generally participate through the stock markets and gets in and out of a particular stock at much faster frequencies.

Recommendations of the H.R. Khan panel • It has proposed that NRIs, OCIs, and RIs should be allowed to hold a non-controlling stake in FPIs, and no restrictions should be imposed on them to manage non-investing FPIs or Sebi- registered offshore funds. • It has recommended that erstwhile PIOs should not be subjected to any restrictions, and clubbing of investment limits should be allowed for well-regulated and publicly-held FPIs that have common control. • The panel has suggested that the time for compliance with the new norms should be extended by six months after they are finalized, and non-compliant investors should be given another 180 days to wind down their existing positions. • It pitched for liberalised investment cap, review of prohibited sectors for foreign investment for FPIs, permitting FPIs for off-market transactions and review of restriction on sovereign wealth funds for investment in corporate debt securities. • An off-market transaction is settled between two parties on mutually agreed terms and the clearing corporation or the stock exchange is not involved. • A sovereign wealth fund (SWF) is a state-owned investment fund or entity which comprises of pools of money derived from a country's reserves. • Further, the group has called for removal of 'opaque structure' definition for FPIs. • All FPIs need to provide BO (Beneficial Ownership) details and those who failed to provide BO details including on account of bearer shares cannot deal in securities market in India. • Thus, there is no need for separate definition of 'opaque structure'. • The report has proposed simplified registration for Multiple Investment Manager (MIM) structures as well as consider pension fund under category I FPI. • Wherever an entity engages Multiple Investment Managers (MIM structure) it can obtain multiple registrations with SEBI. • Alignment between FPI and Alternative Investment Fund (AIF) routes, and strengthening of Offshore Derivative Instruments (ODIs)

 Note: • Offshore Derivative Instruments (ODIs), also known as participatory notes (p-notes) are instruments used by the foreign investors to invest in India's securitiesmarkets without getting registered with the SEBI. • AIF comes under Sebi (Alternative Investment Fund) Regulations 2012 and covers investments which do not happen via the traditional modes of investment such as listed stocks, bonds, cash, property etc.

GS2, 2009 Q) “Foreign investment is far from being critical to India’s economic growth”. Critically comment.

Page 16: Centre to ease approval process for mining leases • The Centre is planning to scrap the need for State governments to take an approval from the Centre prior to granting a mining lease to companies, • Currently, before granting a mining lease, the State Governments are required to put the proposed project, through a process called ‘prior approval’ under which it had to file an application with the Centre seeking its nod for a project for which clearances had been already granted. • Steps are being taken for import-substitution and correction of structural issues in power sector, the coal sector needs to gear up for meeting an additional demand of 400—425 million tonnes per annum (MTPA) beyond the usual growth

Prelims 2018 Consider the following statements: 1. In India, State Governments do not have the power to auction non-coal mines. 2. Andhra Pradesh and Jharkhand do not have gold mines. 3. Rajasthan has iron ore mines. Which of the statements given above is/are correct? a) 1 and 2 b) 2 only c) 1 and 3 d) 3 only

Page 16: RBI allows e-mandate for cards • The Reserve Bank of India (RBI) has decided to permit processing of e-mandate on cards for recurring transactions with additional factor authentication (AFA) during registration. • This will be applicable for transactions done using all types of cards — debit and credit cards and Prepaid Payment Instruments, including wallets. The maximum limit for such a transaction will be ₹2,000.  Note: E-NACH & e-Mandate are new payment services that allow anyone with a bank account to easily automate recurring payments.  e-NACH stands for Electronic National Automated Clearing House.  e-NACH and e-Mandate are easier ways for merchants and their buyers to handle all recurring payments like telephone bills, insurance premiums, utility bills, SIPs, school fees etc.