Daily Current Affairs MCQ- May 22, 2023 - UPSC MCQ

The Ministry of Finance recently invited bids to select an advertising agency for listing and partial disinvestment in the Indian Renewable Energy Development Agency (IREDA).

About Indian Renewable Energy Development Agency (IREDA):

• It was set up as a specialized non-banking finance agency for the renewable energy sector.
• It is a Public Limited Government Company established as a Non-Banking Financial Institution in 1981.
• REDA has been notified as a “Public Financial Institution” under section 4 ‘A’ of the Companies Act, 1956 and registered as Non-Banking Financial Company (NBFC) with Reserve Bank of India (RBI).
• It  is formed for promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation.
• Objectives:
• To give financial support to specific projects and schemes for generating electricity and/ or energy through new and renewable sources and conserving energy through energy efficiency.
• To maintain its position as a leading organization to provide efficient and effective financing in renewable energy and energy efficiency/ conservation projects.

Hence both statements are correct.

Tata Consumer Products recently said that it will delist its global depository receipts (GDRs) from the London Stock Exchange and Luxembourg Stock Exchange.

About Global Depository Receipts (GDRs)?

• It is a foreign currency-denominated negotiable financial instrument issued by a depositary bank. 
• GDRs are certificates issued by a depository bank, which purchases foreign company shares and deposits them in the account. 
• GDRs are commonly used to raise capital from international investors through public stock offerings or private placement.
• Purpose:
• Indian companies can only get their shares listed on foreign exchanges through Global Depository Receipts (GDR).
• GDRs help Indian companies get foreign funds and gain access to international capital. 
• The depository bank is the intermediary that acts as the custodian of the shares issued by the Indian company.
• The depository bank can convert GDRs into shares and trade them on the domestic stock exchanges.
• GDRs are instruments denominated in foreign currencies. The shares are denominated in the deposit receipt issuer's local currency.
• The value of a GDR depends on the value of the underlying share.
• GDRs are issued to investors throughout the country since they can be denominated as multiple forms of freely convertible currency.
• Only companies with a three-year sound financial record can get access to GDRs.
• Thus, Indian companies should get clearance from the Ministry of Finance and Foreign Investment Promotion Board (FIPB) to obtain GDRs.

Hence only statement 1 is correct.

The Securities and Exchange Board of India (SEBI), recently proposed tightening rules for alternative investment funds by restricting their ability to borrow for investments.

About Alternative Investment Funds (AIFs):

• It is a special investment category that differs from conventional investment instruments.
• AIF is any fund established in India which is a privately pooled investment vehicle that collects funds from sophisticated investors, both Indian or foreign, for investing.
• It pools funds from investors and invests them under different categories of investments as specified by the SEBI for the benefit of investors.
• These investment vehicles adhere to the SEBI (Alternative Investment Funds) Regulations, 2012.
• AIFs can be formed as a company, Limited Liability Partnership (LLP), trust, etc. 
• It is an investment option for high rollers, including domestic and foreign investors in India.
• Generally, institutions and high net worth individuals invest in AIF as it needs a high investment amount.
• Categories Of AIF:
• Category I AIFs:
• They can invest in start-ups, early stage ventures, social ventures, SMEs and sectors which the government or regulators consider as socially or economically desirable.
• They include venture capital funds like angel funds, SME Funds, social venture funds, infrastructure funds and such other AIFs as may be specified.
• Category II AIFs:
• They are those which are not classified under Category I or Category III.
• They do not undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted in the regulations.
• Various types of funds such as real estate funds, debt funds, private equity funds, funds for distressed assets, etc. are registered as Category II AIFs.
• Category III AIFs:
• They are funds which employ complex or diverse trading strategies and may employ leverage including through investment in listed or unlisted derivatives hedge funds, PIPE Funds, etc. are registered as Category III AIFs. 
• Category I and II AIFs are required to be close ended and have a minimum tenure of three years. Category III AIFs may be open ended or close ended.

Hence both statements are correct.

The Himalayan Chandra Telescope in Hanle recently joined hands with 10 other global observatories to observe the brightening of a blazar, one of the most powerful objects in the universe.

About Himalayan Chandra Telescope:

• It is a 2 meter optical-infrared telescope named after Nobel laureate Subramaniam Chandrasekhar.
• Location: It is at the Indian Astronomical Observatory (IAO) in Hanle near Leh in Ladakh.
• It is currently the tenth highest optical telescope in the world, situated at an elevation of 4,500 meters.
• The telescope remotely operated using a dedicated satellite communication link from the Centre for Research & Education in Science & Technology (CREST), Indian Institute of Astrophysics (IIA), Bangalore.
• Imaging instruments include a Faint Object Spectrograph, a near infra-red and an optical CCD camera.

Hence only statement 2 is correct.

The European Bank for Reconstruction and Development (EBRD) recently pledged further support for war-torn Ukraine with plans to increase its capital by 3 billion-5 billion euros.

About European Bank for Reconstruction and Development (EBRD):

• It is an international financial institution with the mandate to promote transition towards a sustainable, open market economy and to foster innovation.
• The EBRD was created in April 1991 to help Eastern European and ex-Soviet countries transitioning into democracies by developing free-market economies after the fall of communism.
• Headquarters: London
• It provides project financing mainly for private enterprises, usually together with other commercial lending partners, in countries that are committed to, and apply, democratic principles. 
• It also works with public partners to support privatisation, restructuring and improvement of municipal services.
• It prioritizes support for countries in Central and West Asia, and North Africa.
• It focuses on advancing developmental goals in finance and policy reform.
• The organization also promotes environmentally sustainable development and gender equality and promises to be fully transparent.
• Membership: It is publicly owned by shareholders in 69 countries. India became the EBRD's 69th shareholder when it joined the Bank in July 2018. 

Hence both statements are correct.

The Reserve Bank of India recently decided to withdraw the ₹2000 denomination banknotes from circulation even as it reiterated that these notes will continue to be legal tender. 

About Legal Tender:

• It is a type of currency or medium of exchange. 
• It is money that is valid and acceptable for the settlement of debts which must be recognized when issued.
• Almost every country uses its national currency as legal tender.
• Creditors are lawfully responsible for accepting legal tender for the repayment of debt that they have availed.
• Legal tender is constitutioned by a law that specifies the object to be utilised as legal tender and the organisation that is commissioned to create and issue the same to the public such as the Reserve Bank of India.
• In India, the authentic legal tender of the Reserve Bank of India consists of coins and notes. The creditors are supposed to accept them as a payment towards the debt. 

Hence both statements are correct.

A South Korean firm recently announced the world’s first production line for perovskite-silicon tandem solar cells.

About Tandem Solar Cells:

• It consists of solar cells on top of each other. 
• There are several types of tandem cells that can be grouped mainly depending on materials used.
• Tandem cells are stacks of p-n junctions, each of which is formed from a semiconductor of different bandgap energy. Each responds to a different section of the solar spectrum.
• They are able to improve the efficiency of standard solar panels by splitting the light spectrum and optimising the harvesting of energy from each section into electricity.

What is Perovskite?

• A perovskite is a material that has the same crystal structure as the mineral calcium titanium oxide, the first-discovered perovskite crystal. 
• Generally, perovskite compounds have a chemical formula ABX3, where ‘A’ and ‘B’ represent cations and X is an anion that bonds to both.
• A large number of different elements can be combined together to form perovskite structures.
• Using this compositional flexibility, scientists can design perovskite crystals to have a wide variety of physical, optical, and electrical characteristics. 
• Perovskite crystals are found today in ultrasound machines, memory chips, and now – solar cells.

Hence only statement 1 is correct.

A recent study suggest that comb jellies, more formally known as ctenophores, are the closest relatives of the first animals.

About Comb Jelly:

• It is any of the numerous marine invertebrates constituting the phylum Ctenophora.
• It is a beautiful, oval-shaped animal with eight rows of tiny comblike plates that it beats to move itself through the water.
• As it swims, the comb rows break up (diffract) light to produce a shimmering rainbow effect.
• Some ctenophores live in somewhat brackish water, but all are confined to marine habitats. 
• They live in almost all ocean regions, particularly in surface waters near shores. 
• They are frequently swept into vast swarms, especially in bays, lagoons, and other coastal waters. 
• They are carnivorous, eating myriads of small planktonic animals.

Hence both statements are correct.

Recently, Union Minister inaugurated the Pashmina Certification Centre (PCC) at the Wildlife Institute of India in Dehradun, Uttarakhand.

About Pashmina Certification Centre:

• The Minister of Environment, Forest and Climate Change and Labour and Employment termed PCC as a boost for Atamnirbhar Bharat, adding that it will provide certification for the purity of Pashmina products.
• The Export Promotion Council for Handicrafts (EPCH) collaborated with WII to establish a Pashmina Certification Center (PCC) for its associated members involved in Pashmina Trade.
• Purpose of setting:
• To streamline the Pashmina Trade.
• To provide a one-stop testing facility to certify genuine Pashmina Product free from any prohibited fibres to the associated manufacturers, exporters, and traders.
• All the tested products will be labelled with a traceable unique id tag with individual e-certificates, enabling a seamless trade of such products in national and international markets.

Wildlife Institute of India:

It was established in 1982 in Dehradun.

It's an autonomous institute managed by the Ministry of Environment Forest and Climate Change.

Aims & Objectives:

• Build up scientific knowledge on wildlife resources.
• Train personnel at various levels for conservation and management of wildlife.
• Carry out research relevant to management including the development of techniques appropriate to Indian conditions.
• Provide information and advice on specific wildlife management problems.
• Collaborate with international organizations on wildlife research, management and training.
• It carries out wildlife research in areas of study like: Biodiversity, Endangered Species, Wildlife Policy, Wildlife Management, Wildlife Forensics, Eco-development, Climate Change etc.

Hence both statements are correct.

Recently, The Ministry of Civil Aviation in collaboration with Federation of Indian Chambers of Commerce & Industry (FICCI) organized a curtain raiser ahead of Wings India 2024.

About Wings India 2024:

• Ministry of Civil Aviation (MoCA), Airport Authority of India (AAI) and Federation of Indian Chambers of Commerce and Industry (FICCI) are organizing the upcoming edition of 'Wings India 2024'.
• The Asia’s largest commercial, general, and business aviation event to be held in January 2024 at Begumpet Airport, Hyderabad, India.

Federation of Indian Chambers of Commerce and Industry (FICCI):

• It was established in 1927 as non-government, not-for-profit organization.
• It is the largest and oldest apex business organisation in India.
• It serves its members from the Indian private and public corporate sectors and multinational companies.
• It is the voice of India's business and industry. From influencing policy to encouraging debate, engaging with policy makers and civil society, it articulates the views and concerns of industry.

Airport Authority of India (AAI):

• It was constituted by an Act of Parliament and came into being on 1st April 1995 by merging erstwhile National Airports Authority and International Airports Authority of India.
• It is responsible for creation development and management of Air Cargo Terminals for processing of international air cargo at international and domestic airports in India.

Hence both statements are correct.