Context: The Reserve Bank of India (RBI) has allowed market-driven securitisation of stressed assets, expanding beyond standard-performing loans. This move is expected to attract foreign portfolio investors (FPIs) and private credit funds, adding depth to India’s underdeveloped high-yield (junk) debt market. Key Highlights: Benefits: BS
Zero-Coupon Bonds
Context: Zero-Coupon Bonds (ZCBs), or deep-discount bonds, are fixed-income instruments issued at a discount and redeemed at face value. Popular among HNIs and family offices for their tax efficiency and lump-sum maturity payout, ZCBs saw high demand in late 2024. However, recent monetary and market developments have weakened investor interest. What Is a Zero-Coupon Bond? A Zero-Coupon Bond (ZCB) is a type of debt security that does not pay periodic interest (coupons). Instead, it is sold at a deep discount and redeemed at full face value (par value) upon maturity. The investor’s return is the difference between the purchase price and maturity value. Also known as: Accrual Bond Key Features of Zero-Coupon Bonds: Who Issues ZCBs? How Zero-Coupon Bonds Work: Pricing Formula: Where: Taxation of Zero-Coupon Bonds: Advantages of ZCBs: Disadvantages: Zero-Coupon Bond vs. Regular Bond: Feature Zero-Coupon Bond Regular (Coupon) Bond Interest Payment None (imputed, not paid) Paid periodically (semiannual/annual) Purchase Price Deep discount to face value Close to face value Return At maturity (par – purchase price) Coupons + principal at maturity Price Volatility Higher Lower Tax on Interest On imputed interest annually On actual coupons received
Daily Current Affairs (DCA) 11 June, 2025
Daily Current Affairs Quiz11 June, 2025 National Affairs 1. State of the World Population 2025 Report Source: United Nations Population Fund (UNFPA) & The Hindu Context: India’s population is estimated to have reached 146.39 crore by April, says a new UN demographic report, which adds that the country’s total fertility rate (TFR) has declined to 1.9, falling below the replacement level of 2.1. Key Highlights: India’s Position India’s Current Population Status (2025): Fertility Trends: Population Growth Projection: Youth and Working-Age Demographics: Elderly Population and Life Expectancy: Census and Official Estimates: 2. NABARD’s Rural Economic Conditions and Sentiments Survey (RECSS) Context: NABARD’s Rural Economic Conditions and Sentiments Survey (RECSS), conducted in May 2025 across 600 villages and 6,000 households, reveals a record-high rural income optimism, backed by positive employment sentiment, steady consumption patterns, and an above-normal monsoon forecast. This is the fifth round of the bi-monthly survey that began in September 2024. Key Highlights: Income Expectations at Historic High One-Year Income Outlook Trends Survey Round Income Increase Income Decline No Change Sep 2024 70.2% 7.3% 22.5% Nov 2024 71.3% 7.8% 20.9% Jan 2025 71.2% 7.4% 21.4% Mar 2025 72.2% 7.5% 20.3% May 2025 73.6% 6.7% 19.7% Household Income – Past 12-Month Comparison Employment Sentiment Improves Sharply Consumption Remains Strong Savings Sentiment Still Weak Real Wages Outlook – FY26 (India Ratings) BS 3. Portal SAHAV Launched in Third United Nations Ocean Conference (UNOC3) Context: At the Third United Nations Ocean Conference (UNOC3) held in Nice, France, India called for urgent global collaboration on marine conservation and ocean governance. Union Minister Dr. Jitendra Singh led the Indian delegation, reaffirming India’s commitment to SDG-14 (Life Below Water). Launch of SAHAV Digital Ocean Data Portal Key Highlights: PIB 4. Software-as-a-Service (SaaS) Context: Indian venture capital funding is undergoing a structural shift from pure-play SaaS (Software-as-a-Service) companies to AI-native startups, as investors prioritize scalability, automation, and deep tech innovation. What is Software-as-a-Service (SaaS)? Software-as-a-Service (SaaS) is a cloud-based software delivery model where applications are hosted by a service provider and made available to users via a web browser. Unlike traditional on-premises software, SaaS does not require installation, maintenance, or hardware infrastructure, as everything is managed by the vendor. How SaaS Works ? Benefits of SaaS Cost Efficiency Accessibility & Remote Work Automatic Updates & Maintenance Scalability & Flexibility Security & Compliance Seamless Integration 5. Jan Man Survey Launched on NaMo App Context: To commemorate 11 years of Prime Minister Narendra Modi’s leadership, the NaMo App launched a large-scale citizen engagement survey titled ‘Jan Man Survey’, aimed at gathering public opinion on governance, security, and development. Key Highlights: 6. Thailand’s National Bird Siamese Fireback Context: In a rare ecological occurrence, the Siamese Fireback (Lophura diardi)—Thailand’s national bird—was sighted for the first time in India, in the forests of Ranikhet, Uttarakhand, by a local bird enthusiast. Key Highlights: Banking/Finance 1. Finance Minister on Unclaimed Assets Context: Union Finance Minister Nirmala Sitharaman chaired the 29th meeting of the Financial Stability and Development Council (FSDC) in Mumbai on June 11, 2025, where she emphasized reducing unclaimed assets and ensuring seamless refund to rightful owners. The meeting also reviewed macro-financial stability, regulatory reforms, and investment strategies. Key Highlights: Focus on Unclaimed Assets What is Unclaimed Assets? Unclaimed assets refer to financial assets (money, shares, mutual funds, etc.) that have been left unclaimed or inactive by their owner for an extended period. These assets can become unclaimed due to various reasons, including death of the account holder, a change of address, or simply forgetting about them. 2. SEBI Probes Jane Street for Algorithmic Manipulation Context: The Securities and Exchange Board of India (SEBI) has launched an investigation into the activities of Jane Street, a global proprietary trading firm, for potential manipulation of benchmark indices through algorithmic trades in India’s Nifty 50 and banking indices. The probe spans the last three years and follows complaints from rival firms over unusual trading patterns and supernormal profits. What Is Jane Street? Why Is SEBI Investigating Jane Street? What is Algorithmic Manipulation? Algorithmic Manipulation refers to the intentional use of algorithmic trading systems—such as automated, high-frequency, or black-box algorithms. This includes generating false or misleading signals about supply, demand, or price of securities, often to mislead other market participants for unfair gain. Key Elements: India’s Current Legal Framework: BS 3. Alternative Investment Funds (AIFs) Context: The Securities and Exchange Board of India (SEBI) has extended the deadline for winding up expired Venture Capital Funds (VCFs) by one year, allowing more time for liquidation. However, it has mandated migration to the Alternative Investment Fund (AIF) framework by 19 July 2025, with one additional year granted for full liquidation after migration. What Are Alternative Investment Funds (AIFs)? Alternative Investment Funds (AIFs) are privately pooled investment vehicles that raise funds from investors to invest in non-traditional assets such as private equity, venture capital, hedge funds, infrastructure, and social impact ventures. These differ from conventional instruments like stocks and mutual funds and are governed under the SEBI (Alternative Investment Funds) Regulations, 2012. Legal Structure: AIFs in India can be formed as: Types of AIFs in India Category I: Growth-Oriented and Impact Investments Focus: Promote innovation, start-ups, SMEs, and social impact. Category II: Private and Debt-Oriented Funds Focus: Invest in private equity and debt without leverage. Category III: High-Risk, Market-Linked Strategies Focus: Aggressive strategies, including leverage and arbitrage. Investor Eligibility and Requirements: Key Benefits of AIFs: 4. SEBI Issues Recovery Notice to OPG Securities in NSE Co-Location Case Context: The Securities and Exchange Board of India (SEBI) has initiated recovery proceedings against OPG Securities and its directors for failing to pay penalties linked to the NSE co-location case, involving unfair trading access. NSE Co-Location Case The NSE co-location case involves allegations that the National Stock Exchange of India (NSE) granted preferential access to certain stockbrokers through its co-location facility, giving them an unfair speed advantage in executing trades. This case has raised serious concerns about market integrity, transparency, and regulatory oversight in India’s capital markets. Key Aspects of the NSE Co-Location Case Co-Location Facility: Secondary
Portal SAHAV Launched in Third United Nations Ocean Conference (UNOC3)
Context: At the Third United Nations Ocean Conference (UNOC3) held in Nice, France, India called for urgent global collaboration on marine conservation and ocean governance. Union Minister Dr. Jitendra Singh led the Indian delegation, reaffirming India’s commitment to SDG-14 (Life Below Water). Launch of SAHAV Digital Ocean Data Portal Key Highlights: PIB
Software-as-a-Service (SaaS)
Context: Indian venture capital funding is undergoing a structural shift from pure-play SaaS (Software-as-a-Service) companies to AI-native startups, as investors prioritize scalability, automation, and deep tech innovation. What is Software-as-a-Service (SaaS)? Software-as-a-Service (SaaS) is a cloud-based software delivery model where applications are hosted by a service provider and made available to users via a web browser. Unlike traditional on-premises software, SaaS does not require installation, maintenance, or hardware infrastructure, as everything is managed by the vendor. How SaaS Works ? Benefits of SaaS Cost Efficiency Accessibility & Remote Work Automatic Updates & Maintenance Scalability & Flexibility Security & Compliance Seamless Integration
Jan Man Survey Launched on NaMo App
Context: To commemorate 11 years of Prime Minister Narendra Modi’s leadership, the NaMo App launched a large-scale citizen engagement survey titled ‘Jan Man Survey’, aimed at gathering public opinion on governance, security, and development. Key Highlights:
Thailand’s National Bird Siamese Fireback
Context: In a rare ecological occurrence, the Siamese Fireback (Lophura diardi)—Thailand’s national bird—was sighted for the first time in India, in the forests of Ranikhet, Uttarakhand, by a local bird enthusiast. Key Highlights:
Finance Minister on Unclaimed Assets
Context: Union Finance Minister Nirmala Sitharaman chaired the 29th meeting of the Financial Stability and Development Council (FSDC) in Mumbai on June 11, 2025, where she emphasized reducing unclaimed assets and ensuring seamless refund to rightful owners. The meeting also reviewed macro-financial stability, regulatory reforms, and investment strategies. Key Highlights: Focus on Unclaimed Assets What is Unclaimed Assets? Unclaimed assets refer to financial assets (money, shares, mutual funds, etc.) that have been left unclaimed or inactive by their owner for an extended period. These assets can become unclaimed due to various reasons, including death of the account holder, a change of address, or simply forgetting about them.
SEBI Probes Jane Street for Algorithmic Manipulation
Context: The Securities and Exchange Board of India (SEBI) has launched an investigation into the activities of Jane Street, a global proprietary trading firm, for potential manipulation of benchmark indices through algorithmic trades in India’s Nifty 50 and banking indices. The probe spans the last three years and follows complaints from rival firms over unusual trading patterns and supernormal profits. What Is Jane Street? Why Is SEBI Investigating Jane Street? What is Algorithmic Manipulation? Algorithmic Manipulation refers to the intentional use of algorithmic trading systems—such as automated, high-frequency, or black-box algorithms. This includes generating false or misleading signals about supply, demand, or price of securities, often to mislead other market participants for unfair gain. Key Elements: India’s Current Legal Framework: BS
Alternative Investment Funds (AIFs)
Context: The Securities and Exchange Board of India (SEBI) has extended the deadline for winding up expired Venture Capital Funds (VCFs) by one year, allowing more time for liquidation. However, it has mandated migration to the Alternative Investment Fund (AIF) framework by 19 July 2025, with one additional year granted for full liquidation after migration. What Are Alternative Investment Funds (AIFs)? Alternative Investment Funds (AIFs) are privately pooled investment vehicles that raise funds from investors to invest in non-traditional assets such as private equity, venture capital, hedge funds, infrastructure, and social impact ventures. These differ from conventional instruments like stocks and mutual funds and are governed under the SEBI (Alternative Investment Funds) Regulations, 2012. Legal Structure: AIFs in India can be formed as: Types of AIFs in India Category I: Growth-Oriented and Impact Investments Focus: Promote innovation, start-ups, SMEs, and social impact. Category II: Private and Debt-Oriented Funds Focus: Invest in private equity and debt without leverage. Category III: High-Risk, Market-Linked Strategies Focus: Aggressive strategies, including leverage and arbitrage. Investor Eligibility and Requirements: Key Benefits of AIFs:
