Daily Current Affairs
To The Point Notes
Economy
1.SEBI Unveils Framework for Indian Mutual Funds to Invest in Overseas Funds
Why in News ?
- SEBI proposes a framework allowing domestic Mutual Funds (MFs) to invest in overseas counterparts (Unit Trusts or UTs) that hold some Indian securities.
Background
- Currently, Indian MFs cannot directly invest in overseas MFs/UTs with exposure to Indian securities.
- Investing in overseas funds with significant Indian holdings wouldn’t offer true diversification benefits.
- Indirect investment through overseas instruments might be less cost-effective for Indian investors compared to direct investment in Indian securities.
What are Mutual Funds?
- A professionally managed pool of money from multiple investors with shared investment goals.
- Invests in equities, bonds, money market instruments, and other securities.
- Generates income/gains distributed proportionately to investors after expenses.
Need for the Framework
- Indian securities are attractive to foreign funds, leading to international indices, ETFs, MFs, and UTs allocating a portion to them.
- Indian MFs can launch ‘feeder funds’ to invest in overseas instruments for diversification and accessing global markets.
SEBI’s Proposals
- Investment Limit in Overseas Funds: Limit set at 20% of their net assets to balance access and prevent excessive exposure.
- Fair Returns for Investors: Indian MFs must ensure all investors in the overseas instrument receive gains proportionate to their contribution.
- Independent Investment Management: Overseas instruments must be managed by an independent investment manager actively making investment decisions.
- Transparency through Public Disclosures: SEBI seeks regular public disclosures of overseas MF/UT portfolios.
- Ban on Advisory Agreements: Prohibits advisory agreements between Indian MFs and overseas MF/UTs to avoid conflicts of interest.
Breach of 20% Limit
- If the overseas instrument breaches the 20% limit, the Indian MF scheme investing in it will enter a 6-month observation period.
- The overseas fund must rebalance its portfolio within this period to comply with the cap.
- During observation, the Indian MF cannot invest further in the overseas MF/UT.
- If not rebalanced within the period, the Indian MF must liquidate its investment in the overseas instrument within 6 months.
Polity
2.Living Will
Why in News ?
- Justice M S Sonak of the Goa Bench of the Bombay High Court became the first person in Goa to register a living will.
About Living Will
- A legal document specifying your preferences for medical care or stopping treatment when you cannot make decisions yourself.
Supreme Court Ruling (2018)
- Upheld the right to die with dignity and allowed passive euthanasia.
- Recognized living wills of terminally ill patients who could enter a permanent vegetative state.
Guidelines for Living Will
- Must be of legal age and sound mind.
- Aware of conditions when treatment/life support will stop.
- Decision made without pressure.
- Signed by you, witnessed by two people, and attested by a gazetted officer or notary.
- Copies to doctor, designated person (family/friend), local self-government secretary, and district magistrate.
IR
3.African National Congress (ANC)
- National liberation movement formed in 1912 to unite Africans and lead the struggle for political, social and economic change in South Africa.
- Open membership to all South Africans above 18, regardless of race, color, creed, who accept its principles, policies and programs.
- Led by Nelson Mandela, it won landmark 1994 elections that marked the end of apartheid.
- Has won national elections every five years since 1994, leading the government.
- Spearheaded the struggle against racism and apartheid oppression through:
- Organizing mass resistance
- Mobilizing international community
- Taking up armed struggle
- Lost its 30-year-old parliamentary majority in recent polls, winning just over 40% of national vote share.
- Key achievements:
- Ending apartheid
- Establishing multi-racial democracy
- Promoting reconciliation and unity
Art and Culture
4.Ancient Rock Paintings Discovered near Hampi’s Pampa Lake
Location:
- Discovered by Karnataka Archaeology Department near Pampa Lake (Koppal district) on the road to Anegundi (Hampi World Heritage Site).
Age:
- Estimated to be 2,500 years old.
Description:
- Most prominent scene: standing humped bull (40cm x 20cm) under attack by a striped tiger (50cm x 20cm). Both figures are orange-red.
- Fainter images of smaller bulls and other figures nearby.
Significance:
- Offers insights into artistic skills and possibly cultural beliefs of creators 2,500 years ago.
- Well-preserved due to natural rock shelter protection.
Hampi World Heritage Site:
- Vijayanagara Empire capital (1336-1565).
- Described as prosperous and grand by foreign travelers.
- Ruins span over 4,100 hectares.
Pampa Lake:
- Sacred lake near Hampi.
- One of five sacred sarovars in India (Panch Sarovar).
- Mentioned in Ramayana as the place where Shabari awaited Rama.
Note:
- Pamba River (longest in Kerala) is a different river from Pampa Lake (Karnataka).
- Archaeology department plans to install a signboard to inform tourists about the rock art.
Source : https://www.deccanchronicle.com/news/ancient-rock-paintings-discovered-near-pampa-lake-896828
Geography
5.Mullaperiyar Dam Facts
- Masonry gravity dam on the Periyar River, Idukki, Kerala.
- Constructed (1887-1895) by John Pennycuick.
- Located on the Cardamom Hills of the Western Ghats.
- Operated and maintained by Tamil Nadu (catchment area entirely in Kerala).
- Reservoir located near Periyar National Park.
- Seismically active area with potential structural flaws.
- Potential risk to 3.5 million people in case of dam failure.
- Water diverted to Forebay Dam for power generation.
- Dam is a gravity dam made with concrete and faced with rubble.
Defence
6.Ex RIMPAC (Rim of the Pacific)
- Biennial Exercise: Held every other year (even numbered years) since 1971 (29th iteration in 2024).
- Hosted by: United States Navy (Indo-Pacific Command) in Hawaii.
- Goal: Foster cooperation and enhance maritime security in the Indo-Pacific.
- Theme (2024): Partners: Integrated and Prepared
- Participants (expected):
- 29 Nations (including India, US, Japan, Australia, Canada)
- 40 Surface Ships
- 3 Submarines
- 14 National Land Forces
- 150+ Aircraft
- 25,000+ Personnel
- Significance:
- Ensures safety of sea lanes.
- Promotes security in a free and open Indo-Pacific.
- Provides platform for joint training, interoperability, and trust-building among participating navies.
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