Daily Current Affairs Quiz3 May, 2025 International Affairs 1. India-UK FTA Talks Resume Context: Union Commerce Minister Piyush Goyal met UK Trade Secretary Jonathan Reynolds in an unscheduled resumption of Free Trade Agreement (FTA) talks in London. Goyal’s return follows an earlier two-day visit this week that ended without a final deal. Negotiations began in January 2022, post-Brexit, but faced delays due to frequent changes in British leadership. The new Labour government has accelerated the process. Status of Negotiations Parallel Negotiations Implications BS National Affairs 1. Vizhinjam Port Context: PM Narendra Modi inaugurated the ₹8,800-crore Vizhinjam International Deepwater Multipurpose Seaport in Thiruvananthapuram, Kerala. This is India’s first dedicated container transshipment port, strategically located near major global shipping routes. The port is developed by Adani Ports and SEZ Ltd under a public-private partnership (PPP) with the Kerala government. Prime Minister’s Remarks Port Features & Benefits TH 2. PM Modi Launches ₹58,000-Crore Projects in Andhra Pradesh Context: PM Narendra Modi laid the foundation stone and inaugurated infrastructure works worth ₹58,000 crore in Andhra Pradesh. Ceremony held near the Secretariat in Guntur district, with virtual participation for select projects. Amaravati Capital Development Infrastructure Projects Highlights Socio-Economic Initiatives TOI 3. Global Media Dialogue 2025 Overview Key Objectives WAVES Declaration Highlights Strategic Outcomes: Significance: PIB Banking/Finance 1. RBI Working Group Recommends Longer Call Money Market Hours to Enhance Liquidity Flexibility Key Recommendations by RBI Working Group (Chaired by Radha Shyam Ratho): Rationale Behind the Recommendations Market Trends and Data Highlights (2014–2025) The RBI’s working group has proposed a pragmatic set of market reforms to reflect the evolving structure of India’s financial ecosystem. These changes aim to improve liquidity management, ensure operational continuity, and enhance market efficiency. BS 2. RBI Seeks Government Nod to Remove Cap on Vostro Account Investment in Short-Term Sovereign Debt Context: In 2022, the Reserve Bank of India (RBI) introduced Special Rupee Vostro Accounts (SRVAs) to facilitate rupee-based trade settlements, aiming to promote the internationalisation of the rupee. These SRVAs allow foreign banks to hold rupee balances in India through domestic banks for trade settlement without registering as Foreign Portfolio Investors (FPIs). Current Restriction RBI’s Proposal to Finance Ministry Objective Behind the Move Significance BS 3. Poonam Gupta Appointed Deputy Governor of RBI Context: Economist Poonam Gupta took charge as a Deputy Governor of the Reserve Bank of India (RBI) on Friday, becoming the fourth woman to hold this position. She succeeds Michael Patra, whose term ended in January 2025. Departments Under Her Oversight: Poonam Gupta will oversee several critical RBI departments, including: Role in Monetary Policy: BS 4. SEBI Alleges Insider Trading Violation by Pranav Adani Context: Pranav Adani, a key director in Adani Group companies and nephew of founder Gautam Adani, is facing insider trading allegations from the Securities and Exchange Board of India (SEBI). According to a SEBI notice reviewed by Reuters, Pranav Adani allegedly shared unpublished price-sensitive information (UPSI) regarding Adani Green Energy’s 2021 acquisition of SB Energy Holdings, backed by SoftBank. What Is Illegal Insider Trading? Definition Illegal insider trading involves buying or selling securities while in possession of material, nonpublic information in violation of a fiduciary duty or a relationship of trust and confidence. It also includes tipping such information to others who then trade based on it. Key Violations Include Examples of Insider Trading Cases Brought by the SEC Why It Matters Illegal insider trading erodes public trust in the financial markets by giving unfair advantages to a select few. To maintain market integrity, the U.S. Securities and Exchange Commission (SEC) prioritizes detecting, investigating, and prosecuting such violations. Nature of Allegation Background: Implications: BS 5. NSE Launches Nifty Waves Index for Media, Entertainment, and Gaming Sectors Key Highlights: The National Stock Exchange (NSE) launched a new thematic index — the Nifty NSE Waves Index at the World Audio Visual & Entertainment Summit (WAVES) in Mumbai. The index is designed to track the performance of companies in the media, entertainment, and gaming sectors, reflecting growing investor interest in these industries. Index Composition Objective and Relevance TH 6. SEBI Proposes Framework Relaxations for InvITs and REITs to Ease Business Environment Context: The Securities and Exchange Board of India (SEBI) released a discussion paper on Friday outlining proposed relaxations in the regulatory framework for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). The move is part of SEBI’s broader agenda to promote ease of doing business and enhance the attractiveness of these instruments for both issuers and investors. Major Proposals Include Objective and Impact BS 7. SEBI Proposes Simplified Disclosure Norms for QIP Placement Documents Context: The Securities and Exchange Board of India (SEBI) on Friday proposed amendments to the ‘placement document’ required for Qualified Institutions Placement (QIP). The changes aim to streamline disclosure requirements by focusing only on information relevant to the issuer, eliminating redundant details. Key Highlights: Proposed Changes Expected Impact TET 8. RBI Panel Proposes Extension of Call Money Market Hours till 7 PM Context: A Reserve Bank of India (RBI) working group has recommended extending the call money market trading hours by two hours, from 5:00 PM to 7:00 PM, to align with the 24×7 availability of payment systems and support better liquidity management among banks. Key Recommendations Rationale & Industry Viewpoint Next Steps TET 9. RBI Imposes Penalties on ICICI Bank, Axis Bank, and 3 Others for Regulatory Non-Compliance Context: On Friday, the Reserve Bank of India (RBI) imposed monetary penalties on five major banks ICICI Bank, Axis Bank, Bank of Maharashtra, Bank of Baroda, and IDBI Bank for violations across multiple regulatory frameworks, including KYC norms, cyber security, and customer service standards. Bank-wise Penalties and Reasons Regulatory Context These penalties are administrative actions under RBI’s supervisory powers and are not meant to question the validity of any transaction or agreement with customers. Implications This development underscores RBI’s emphasis on cybersecurity preparedness, customer service integrity, and accurate implementation of government subsidy schemes, particularly in agriculture finance. TET 10. SEBI Rules Out Aptitude Test for Retail F&O Traders, Emphasizes Investor Autonomy