1. SHORT SELLING (Syllabus: GS Paper 3 - Economy)

Context: The Enforcement Directorate has concluded, after a preliminary investigation into the Hindenburg Research report and the subsequent market crash, that a dozen companies including foreign portfolio investors and foreign institutional investors (FPIs/ FIIs) based in tax havens were the “top beneficiaries” of short selling in shares of Adani Group companies.

Short selling

• About: Short selling, or shorting, is a trading strategy based on the expectation that the price of the security will fall.

• While fundamentally it is based on the “buy low, sell high” approach, the sequence of transactions is reversed in short selling - to sell high first and buy low later. 

• Also, in short selling, the trader usually does not own the securities he sells, but merely borrows them.

• Traditional method: “Buy low, sell high” is the traditional investment strategy in which one buys a stock or security at a particular price and then sells it when the price is higher, thereby booking a profit. 
• This is referred to as a “long position”, and is based on the view that the price of the stock or security will appreciate with time.
• Process: In the stock market, traders usually short stocks by selling shares they have borrowed from others through brokerages. 
• When the price of the shares falls to the expected levels, the trader would purchase the shares at the lower price and return them to the owner, booking a profit in the process. 
• If, however, the price of the shares appreciates instead of falling, the trader will be forced to buy shares at a higher price to return to the owner, thereby booking a loss.

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2. INTERNATIONAL FINANCIAL SERVICES CENTRE (Syllabus: GS Paper 3 - Economy)

Context: The International Financial Services Centres Authority (IFSCA) has proposed key exemptions to the current listing framework and measures for setting up holding companies (holdcos) and special purpose acquisition companies (SPACs) to encourage domestic startups list at GIFT City, the country’s only international financial services centre (IFSC). 

• Under the current framework, to be eligible to list on IFSC exchanges, an issuing company should have operating revenue of at least $20 million in the preceding financial year and average pre-tax profits of at least $1 million during the preceding three financial years. 
• An expert committee has noted these conditions have acted as hurdles to listing new-age companies, and they need a relook.

International Financial Services Centre (IFSC) 

• About: A financial centre that caters to customers outside the jurisdiction of the domestic economy. 

• It is also known as an offshore financial centre since it deals with flow of finance, financial products and services across borders.

• Objectives: IFSCs are intended to provide Indian corporates with easier access to global financial markets, and to complement and promote further development of financial markets in India.
• Nodal Agency: The International Financial Services Centres Authority (IFSCA) was established by the Government of India to develop and regulate international financial services centres in the country.
• The first IFSC in India has been set up at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.
• IFSCA: It is a statutory authority established in April 2020 under the International Financial Services Centres Authority Act, 2019.
• Before the IFSCA was established, the financial services and institutions were regulated by the domestic financial regulators such as SEBI, RBI, IRDAI, PFRDA, etc.
• The Special Economic Zone Act, 2005 provides for the establishment of an IFSC in India.
• As per the SEZ Act, the government approved GIFT City as a Multi Services Special Economic Zone (“GIFT SEZ”) in Gandhinagar.

• IFSCA Functions:

• Regulate financial products such as securities, deposits or contracts of insurance, financial services, and financial institutions which have been previously approved by any appropriate regulator such as Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) etc., in an IFSC.
• Regulate any other financial products, financial services, or financial institutions in an IFSC, which may be notified by the central government.
• Recommend to the central government any other financial products, financial services, or financial institutions, which may be permitted in an IFSC.
• IFSCA Members: The IFSCA consists of nine members appointed by GOI. 
• The members are: Chairperson, 1 member from RBI, 1 member from SEBI, 1 member from PFRDA, 1 member from IRDAI, 2 members from the Finance Ministry and 2 members appointed on recommendation of a Selection Committee.
• Term: The term of each member is three years subject to reappointment.

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3. ARTICLE 35A (Syllabus: GS Paper 2 - Polity)

Context: : Chief Justice of India said Article 35A, which empowered the Jammu and Kashmir Legislature to define “permanent residents” of the State and provide them special privileges, denied fundamental rights to others.

• The Chief Justice noted that Article 35A had even granted immunity from judicial review to these special privileges.

Article 35A

• Article 35A is a provision incorporated in the Constitution giving the Jammu and Kashmir Legislature a carte blanche to decide who all are ‘permanent residents’ of the State and confer on them special rights and privileges in public sector jobs, acquisition of property in the State, scholarships and other public aid and welfare.
• The provision mandates that no act of the legislature coming under it can be challenged for violating the Constitution or any other law of the land.
• Article 35A was incorporated into the Constitution in 1954 by an order of the then President Rajendra Prasad on the advice of the Jawaharlal Nehru Cabinet.
• The controversial Constitution (Application to Jammu and Kashmir) Order of 1954 followed the 1952 Delhi Agreement entered into between Nehru and the then Prime Minister of Jammu and Kashmir Sheikh Abdullah, which extended Indian citizenship to the ‘State subjects’ of Jammu and Kashmir.
• The Presidential Order was issued under Article 370 (1) (d) of the Constitution. 
• This provision allows the President to make certain “exceptions and modifications” to the Constitution for the benefit of ‘State subjects’ of Jammu and Kashmir.
• So, Article 35A was added to the Constitution as a testimony of the special consideration the Indian government accorded to the ‘permanent residents’ of Jammu and Kashmir.
• It treats non-permanent residents of J&K as ‘second-class’ citizens.
• Non-permanent residents of J&K are not eligible for employment under the State government and are also debarred from contesting elections.
• Meritorious students are denied scholarships and they cannot even seek redress in any court of law.
• Further, the issues of refugees who migrated to J&K during Partition are still not treated as ‘State subjects’ under the J&K Constitution.
• It was inserted unconstitutionally, bypassing Article 368 which empowers only Parliament to amend the Constitution.
• The laws enacted in pursuance of Article 35A are ultra vires of the fundamental rights conferred by Part III of the Constitution, especially, and not limited to, Articles 14 (right to equality) and 21 (protection of life).

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4. INDIA - BANGLADESH DEFENCE COOPERATION (Syllabus: GS Paper 2 - IR)

Context: India and Bangladesh held the fifth Annual Defence Dialogue on 28 August 2023 in Dhaka. 

Key Points

• The Annual Defence Dialogue between India and Bangladesh is the highest institutionalized interactive mechanism between both the countries. 
• In the dialogue, both the countries highlighted its significance in chartering the future course of the relations between the two Armed Forces.
• During the meeting, the ongoing defence cooperation activities between the two countries were reviewed and both sides expressed satisfaction at the increasing defence cooperation engagements. 
• The talks covered the existing bilateral exercises and both sides agreed to increase the complexity of these exercises.
• The Armed Forces of both countries continue to seek bilateral cooperation in multiple fields and the increased engagements are a positive sign for the future of the relations of both countries.

India and Bangladesh Defence Cooperation

• High-level exchanges include the second edition of India-Bangladesh CORPAT ‘Bangosagar’ exercise, Regional Commanders meeting of Coast Guards and Annual Defense Dialogue.
• Muktijoddha related engagements and implementation of the Muktijoddha Medical Scheme for the first time in Bangladesh in 2020.
• High level exchanges at the level of services chief of Indian Navy, Bangladesh Navy and Indian Air Force, conduct of second annual defense dialogue and inaugural tri-services staff talks, service specific talks of Navy and Air Force and the DG level talks between the Coast Guards.
• Various Joint exercises of Army (Exercise Sampriti) and Navy (Exercise Milan) take place between the two countries.

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5. ARAB LEAGUE (Syllabus: GS Paper 2 - IR)

Context: India is launching a major outreach with key members of the Arab World through G20 to build momentum in strategic partnership and economic linkages.

• Besides Saudi Arabia, which is a G20 member, leaders of the UAE, Oman and Egypt are expected to attend the G20 Summit as invitees.

Arab League

• About: Arab League, also called League of Arab States (LAS), is an intergovernmental pan-Arab organisation of all Arab states in the Middle East and North Africa.
• Origin: It was formed in Cairo, Egypt on 22nd March 1945, following the adoption of the Alexandria Protocol in 1944.
• The Arab League came into being after a Pact of the League was signed at Cairo on March 22, 1945 by the countries of Egypt, Iraq, Jordan,  Lebanon, Saudi Arabia, Syria and Yemen that had achieved independence by then.
• The Pact was an initiative of the then Prime Minister of Egypt, Nahas Pasha, and was supported by the British government.
• The League was later joined by 14 other nations and the PLO.
• Palestine is considered independent de jure.
• Members: Currently, the League has 22 members.
• The Charter of the Arab League, also known as the Pact of the League of Arab States, is the founding treaty of the Arab League. 
• Adopted in 1945, it stipulates that “the League of Arab States shall be composed of the independent Arab States that have signed this Pact.”
• 22 member states: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen
• 5 Observer states: Armenia, Brazil, Eritrea, India and Venezuela.

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6. 19th AMCEN (Syllabus: GS Paper 3 - Env & Eco)

Context: Fifty-four countries acknowledged key environmental challenges faced by the continent - land degradation, desertification and drought - in the Addis Ababa declaration, August 18, 2023. 

• The declaration was a key outcome of the 19th African Ministerial Conference on the Environment (AMCEN) 2023 held from August 14 to 18, 2023 at Addis Ababa, Ethiopia. 

Key Points

• The theme for AMCEN 2023 was “Seizing Opportunities and Enhancing Collaboration to Address Environmental Challenges in Africa”. 
• The declaration prioritises urgent, wide-ranging action on environmental challenges related to climate change, plastics pollution, marine protection, biodiversity conservation and natural capital. 
• These actions would minimise environmental impacts and contribute to the global goals of mitigating climate change, protecting ecosystems and promoting sustainable development.
• The countries also committed to take appropriate measures to implement the Kunming-Montreal Global Biodiversity Framework through updating or revising national biodiversity strategies and action plans or national targets.
• They will work towards closing the biodiversity finance gap of $700 billion per year. They have also jointly committed to work on increasing the flow of international finances. 
• The ministers have also resolved to work together and ensure that international financial flows to developing countries are increased to at least $20 billion per year by 2025. 
• The ultimate aim is to increase the global finance flow to at least $100 billion per year, stated the declaration. 
• The countries have also agreed to work on a priority to implement Africa Blue Economy Strategy of the African Union.

African Ministerial Conference on the Environment (AMCEN) 

• It was established in December 1985, following a conference of African ministers of environment held in Cairo, Egypt. 

• Its mandate is to provide advocacy for environmental protection in Africa; to ensure that basic human needs are met adequately and in a sustainable manner; to ensure that social and economic development is realized at all levels; and to ensure that agricultural activities and practices meet the food security needs of the region.

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7. KAMPALA DECLARATION (Syllabus: GS Paper 3 - Env & Eco)

Context: A total of 48 African countries have now agreed to adopt the Kampala Ministerial Declaration on Migration, Environment and Climate Change (KDMECC) to address the nexus of human mobility and climate change in the continent.

Key Points

• The continental expansion of the KDMECC was discussed at a three-day Conference of States that began August 23, 2023. 
• It was co-hosted by the Governments of Kenya and Uganda with support from the International Organization for Migration (IOM) and the United Nations Framework Convention on Climate Change (UNFCCC). 
• It also enabled the African States to develop a common position ahead of the Africa Climate Summit and the Conference of Parties (COP 28). 
• KDMECC was originally signed and agreed upon by 15 African states in Kampala, Uganda in July 2022. 
• The KDMECC-AFRICA is expected to be signed by Member States during the Africa Climate Summit in Nairobi on September 4, 2023. 
• The Declaration is the first comprehensive, action-oriented framework led by Member States to address climate-induced mobility in a practical and effective manner. 

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8. LIGHTNING DISASTER (Syllabus: GS Paper 1 - Geography)

Context: Madhya Pradesh is found to be the lightning hub of India with maximum flashes of 987,095 in 2022-23 and highest deaths of 340 per year, according to the latest report on lightning.

• The fourth annual lightning report said the country recorded more than 20 million lightning strikes in 2022-23, a 60% increase in cloud-to-ground lightning from 2019-20.

Lightning  Disaster

• Lightning is a powerful and visible electrical phenomenon that takes place when there is a buildup of electrical charges within clouds and between clouds and the ground.
• The discharge of this electrical energy results in a brilliant flash of light and a rapid expansion of air, creating the characteristic thunder that accompanies lightning.
• Cloud-to-ground (CG) lightning is dangerous because it can electrocute people due to its high electric voltage and current.
• India ranks among the five countries worldwide with an early warning system for lightning.
• According to National Crime Records Bureau (NCRB) 2021 data, lightning accounted for 2,880 deaths, comprising 40% of all accidental deaths caused by "forces of nature."
• Lightning frequency is highest in northeastern states and West Bengal, Sikkim, Jharkhand, Odisha, and Bihar.
• Bihar is one of the most vulnerable states to lightning strikes, with a significant number of deaths reported annually.
• The Union government opposes declaring lightning a natural disaster. The government believes that education and awareness can help prevent lightning-related deaths effectively.

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9. NATIONAL SPORTS DAY (Syllabus: GS Paper 1 - Sports)

Context: The Prime Minister has greeted all sports persons on National Sports Day.

National Sports Day

• The National Sports Day or Rashtriya Khel Divas is celebrated on 29th August every year in India as a tribute to hockey legend Major Dhyan Chand who was born on this date in 1905.
• Major Dhyan Chand was awarded the Padma Bhushan Award by the Government of India in 1956, the third-largest civilian honour in India.
• The day was first designated and celebrated in 2012 as India’s National Sports Day.
• The nation celebrates the day honouring our sports stars.
• The president gives away sports awards such as the Major Dhyan Chand Khel Ratna Award, Arjuna Award, Dronacharya Award, and Dhyan Chand Awards on this occasion.
• The primary motto of National Sports Day is to promote awareness about the significance of sports and being physically active in day-to-day life.
• The Government of India organises various programs, events, seminars etc to raise awareness about the significance of National Sports Day.

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10. WORLD ATHLETICS CHAMPIONSHIPS (Syllabus: GS Paper 1 - Sports)

Context:  The Prime Minister has congratulated Neeraj Chopra for winning the Gold at the World Athletics Championships.

• He become the first Indian to win a gold medal in the World Athletics Championships.
• In 2022, he created history by winning a silver medal in the javelin throw final of the World Athletics Championships held in Eugene, Oregon, USA.

World Athletics Championships

• The World Athletics Championships (until 2019 known as the IAAF World Championships in Athletics) are a biennial athletics competition organized by World Athletics (formerly IAAF, International Association of Athletics Federations). 
• Alongside the Olympic Games, they represent the highest level championships of senior international outdoor athletics competition for track and field athletics globally, including marathon running and race walking. 
• Separate World Championships are held by World Athletics for certain other outdoor events, including cross-country running and half-marathon, as well as indoor and age-group championships.

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