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Daily Current Affairs
5 & 6 February, 2026
1. The India–USA Trade Deal 2026 primarily aims to achieve which of the following?
A) Establish a free trade area
B) De-escalate trade tensions and realign energy sourcing
C) Promote defence manufacturing cooperation
D) Introduce a common digital currency
E) Replace WTO trade rules
Answer: B) De-escalate trade tensions and realign energy sourcing
Explanation: The 2026 India–USA Trade Deal focuses on ending trade friction, restoring market access, and shifting India’s energy sourcing away from Russian oil towards the US and others.
2. Which of the following sectors is explicitly excluded from tariff liberalisation under the India–USA Trade Deal 2026?
A) Pharmaceuticals
B) Information Technology
C) Dairy
D) Electronics
E) Coal
Answer: C) Dairy
Explanation: Sensitive sectors such as dairy and staple agricultural crops are excluded to protect domestic farmers and food security.
3. Denotified Tribes (DNTs) were originally classified under which colonial-era law?
A) Indian Penal Code, 1860
B) Criminal Tribes Act, 1871
C) Government of India Act, 1935
D) Police Act, 1861
E) Land Revenue Act, 1887
Answer: B) Criminal Tribes Act, 1871
Explanation: DNTs were historically branded as “criminal tribes” under the Criminal Tribes Act, 1871, which was repealed in 1952.
4. SabhaSaar Initiative is primarily associated with which objective?
A) Digital taxation of Panchayats
B) Real-time election monitoring
C) Automated summarisation of Gram Sabha meetings
D) Biometric attendance of Panchayat members
E) Online dispute resolution
Answer: C) Automated summarisation of Gram Sabha meetings
Explanation: SabhaSaar is an AI-powered voice-to-text platform that automatically generates structured Minutes of Meetings (MoM) from Gram Sabha recordings.
5. The Frontier Nagaland Territorial Authority (FNTA) represents which of the following?
A) Creation of a new State
B) Union Territory administration
C) Autonomous territorial authority within Nagaland
D) Sixth Schedule tribal council
E) Direct Central administration
Answer: C) Autonomous territorial authority within Nagaland
Explanation: FNTA is an autonomous governance structure within Nagaland, providing enhanced administrative and financial autonomy without creating a separate State.
6. The Settlement Guarantee Fund (SGF) primarily serves which purpose in financial markets?
A) Providing loans to brokers
B) Ensuring settlement of trades in case of default
C) Stabilising currency exchange rates
D) Financing infrastructure projects
E) Protecting retail investors from losses
Answer: B) Ensuring settlement of trades in case of default
Explanation: SGF acts as a financial buffer maintained by clearing corporations to guarantee completion of trades even if a member defaults.
7. SEBI has proposed reducing the Z-score in commodity derivatives stress testing from 10 to 5 mainly because:
A) Market volatility has declined permanently
B) A Z-score of 10 overstates extreme risk
C) International norms mandate it
D) Clearing corporations requested higher risk
E) It reduces reporting requirements
Answer: B) A Z-score of 10 overstates extreme risk
Explanation: SEBI noted that a Z-score of 10 captures extremely rare events and may lead to overly conservative and capital-intensive risk norms.
8. SEBI’s proposal to allow InvITs to hold SPVs beyond concession expiry primarily addresses which issue?
A) Political risk
B) Environmental clearance delays
C) Temporary regulatory non-compliance
D) Declining infrastructure demand
E) Foreign investment restrictions
Answer: C) Temporary regulatory non-compliance
Explanation: After concession expiry, assets revert to the government, making SPVs temporarily non-compliant. SEBI’s proposal avoids forced divestment during this phase.
9. The ‘Fit and Proper’ framework under SEBI regulations mainly evaluates which of the following?
A) Market capitalisation
B) Corporate tax compliance
C) Integrity, reputation and financial soundness
D) Profitability ratios
E) Foreign shareholding limits
Answer: C) Integrity, reputation and financial soundness
Explanation: The framework assesses whether intermediaries and their management meet standards of integrity, competence, reputation, and financial soundness.
10. Compounding of offences under FEMA implies:
A) Automatic waiver of penalties
B) Criminal prosecution of entities
C) Voluntary settlement with payment of a fee
D) Lifetime ban from financial markets
E) Judicial trial in High Court
Answer: C) Voluntary settlement with payment of a fee
Explanation: Compounding under FEMA allows entities to admit violations, pay a monetary penalty, and close the case without prolonged litigation.
