Business, Economy & Banking Current Affairs - 2019

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

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Mayaram panel submits report on NSEL crisis

A high-level committee, chaired by Economic Affairs Secretary Arvind Mayaram, submitted to Finance Minister its report on the alleged irregularities at the National Spot Exchange Ltd (NSEL). The panel has found “minor systemic” problem and the report details long term measures to deal with such irregularities.

What is the National Spot Exchange Limited (NSEL)?

National Spot Exchange Limited (NSEL) is a Commodities exchange in India, and is a joint venture of Financial Technologies (India) Ltd. (FTIL) and National Agricultural Cooperative Marketing Federation of India (NAFED). The exchange launched its live trading operations in different commodities on October 15, 2008. It began trading in pre-certified cotton bales for Mumbai delivery and imported gold and silver bars for Ahmedabad delivery immediately, and has since added a number of commodities.

The mission of the exchange is to develop a common Indian market by setting up a nation-wide electronic spot market and providing state of art trading, delivery, and settlement facilities in various commodities.

What is the issue of NSEL?

The NSEL is going through a financial crisis in settling dues worth Rs 5,600 crore.  All the operations of the NSEL are completely shut since August 5, 2013. The exchange blamed the government for the structural changes it instructed for creating market disequilibriumwhereas other experts believe NSEL was required to be deliver commodity physically instead the exchange facilitated use of electronic warehouse receipts, enabling investors to avail of the arbitrage, without taking physical possession of goods. The loopholes in contracts and insufficient underlying stocks to cover liabilities led to financial crisis.

Why did the government constitute Mayaram Committee?

The Committee was set up to look into the issue of NSEL failure and recommend measures to fill the gaps in the oversight of spot exchanges. The main issue was whether NSEL violated the Government exemption for one-day forward trading and also the ban on all short sales.

Virat Kohli appointed as brand ambassador of BSF

Screenshot_2The Border Security Force has appointed Indian cricketer Virat Kohli as its brand ambassador. It is important to note that any central force in India has appointed its brand ambassador. BSF is the second largest paramilitary force of India that guards two crucial Indian borders with Pakistan and Bangladesh.

Virat Kohli has been roped in for strengthen the appeal of 2.5 lakh personnel strong BSF.

About the Border Security Force (BSF)

Established on December 1, 1965, the Border Security Force (BSF) is a border patrol force of the Government of India. BSF come under the flank of the Paramilitary Forces of India (PMF) and its main role is to guard India’s international borders during peacetime as well as prevent transnational crime. The BSF is under the administrative control of the Ministry of Home Affairs. Besides ensuring the border security, BSF also has the responsibility of conducting the anti-Naxal operations in India as well as playing roles in upkeep of the internal security.