Daily Current Affairs (DCA) 29 April, 2025

Daily Current Affairs Quiz
29 April, 2025

International Affairs

1. India-UK FTA

India-UK Free Trade Agreement in Final Stages

• Commerce Minister Piyush Goyal met UK’s Business and Trade Secretary Jonathan Reynolds in London to finalize the long-pending India-UK Free Trade Agreement (FTA).
• Goyal described the meeting as a “productive engagement” aimed at reinforcing bilateral trade ties.
• Talks have reached a conclusive stage, with rules of origin and short-term service visas being the remaining contentious issues.

Key Trade-Offs Between India and UK

• India has scaled down visa demands; UK to offer just ~100 new service sector visas annually, far short of India’s initial proposal targeting healthcare and IT professionals.
• India is pushing for better access to the UK for textiles and services, while the UK seeks tariff reductions on cars, Scotch whisky, and wines:
  • India currently imposes:
    • 100% duty on cars
    • 150% on Scotch and wines
• Indian whisky producers seek relaxation of UK’s three-year maturation rule.
• India’s textile exports face up to 10% tariffs in the UK—an FTA would offer a level playing field against competitors like Bangladesh.

Economic Impact & Sectoral Gains

• According to Global Trade Research Initiative (GTRI), the FTA offers limited trade gains for India, as many Indian exports already benefit from zero or low tariffs in the UK.
• Labour-intensive sectors like textiles are expected to benefit significantly.
• UK exporters will benefit more as India’s average tariff on UK goods is 14.6%, compared to 4.2% UK tariff on Indian goods.

Carbon Tax Concerns

• India is watching developments around the UK’s proposed carbon tax, aligning with the EU’s CBAM (Carbon Border Adjustment Mechanism) expected in 2027.
• The tax could impact Indian exports of steel, cement, and aluminium, raising trade friction.

US-India Trade Deal on Fast Track

• US Treasury Secretary Scott Bessent said a bilateral trade deal with India could be among the first to be signed amid global negotiations to avoid new US tariffs.
• Bessent highlighted “very good proposals” from partners like India, Japan, and South Korea, with Vice President JD Vance recently visiting India for talks.

The Indian Express

National Affairs

1. India and France Finalize ₹64,000 Crore Deal for Rafale-M Fighter Jets

Context:

India and France have officially concluded an Inter-Governmental Agreement (IGA) valued at nearly ₹64,000 crore for the procurement of 26 Rafale-Marine (Rafale-M) fighter jets for the Indian Navy. The signing ceremony was conducted remotely by Defence Minister Rajnath Singh and French Armed Forces Minister Sébastien Lecornu.

Key Details

• Agreement Type: Inter-Governmental Agreement (IGA)
• Aircraft Ordered: 26 Rafale-M fighter jets
• Total Value: Approx. ₹64,000 crore
• Delivery Schedule: Commences mid-2028, completes by 2030
• Training: Crew training to be conducted both in France and India

Scope of the Deal

• Simulator Systems and Equipment: Comprehensive simulation and support equipment included
• Weapon Systems: Package includes weapons for operational deployment
• Performance-Based Logistics: Maintenance and availability support for the Rafale-M fleet
• Technology Transfer: Integration of indigenous Astra Beyond Visual Range (BVR) missiles onto Rafale platforms
• Support for Indian Air Force: Additional equipment for existing IAF Rafale jets

Industrial and Economic Benefits

• Manufacturing Boost:
  • Establishment of a Rafale fuselage production facility in India
  • Setting up of MRO (Maintenance, Repair, and Overhaul) hubs for engines, sensors, and weapons
• Employment Opportunities:
  • Thousands of new jobs expected across the defence ecosystem
  • Significant revenue generation opportunities for Micro, Small, and Medium Enterprises (MSMEs)

Strategic Significance

• Strengthens Indian Navy’s maritime strike capabilities
• Deepens Indo-French strategic defence cooperation
• Supports ‘Make in India’ and indigenous defence modernization goals

TH

2. Pew Survey: India’s Paradox on Fake News, Media Freedom, and State Censorship

Context:

A Pew Research Center survey highlights a complex and concerning dynamic in India regarding fake news, press freedom, and state control. While widespread anxiety about misinformation exists, many Indians do not associate it with government censorship and, paradoxically, show considerable support for greater state regulation of the media.

Key Findings

High Concern About Fake News

• 65% of Indian respondents believe that made-up news and information is a “very big problem”.
• India ranks among the top 10 countries most concerned about fake news out of 35 surveyed.
• Comparable high levels of concern were recorded in Bangladesh, South Korea, Chile, Colombia, and Thailand.

Support for State Influence over Media

• Only 68% of respondents said that it is very or somewhat important for the media to report without state censorship.
• This is the second-lowest level of support among the 35 countries surveyed.
• Countries like Greece, Sweden, and the U.K. recorded over 90% support for independent media.

Perception of Media Freedom

• 80% of Indian respondents believe that the media is either completely or somewhat free from state intervention.
• This places India among the top 10 countries where faith in existing media freedom is strongest.
• Similar levels of confidence were noted in Sweden, the Netherlands, the Philippines, Ghana, Australia, Kenya, and Thailand.

Press Freedom Paradox

• In 33 out of 35 countries, more people valued media freedom than believed it existed (“press freedom gap”).
• However, India and Kenya displayed the reverse gap:
  • More people believed media is free (80%+) than those who felt media freedom is important (<70%).

Implications

• This paradox reflects a worrying normalization of censorship and erosion of critical public support for press independence.
• It underscores the broader decline of press freedom in India, evidenced by India’s 159th rank out of 180 countries in the 2024 World Press Freedom Index by Reporters Without Borders.
• India has consistently ranked below 100 since 2003, with a steep fall in recent years.

Global Context (Chart Insights)

• Fake News Concern:
  • Highest in Bangladesh, South Korea, Chile, Colombia, Thailand.
  • Lowest in Singapore, Poland, Sweden, Netherlands, Israel.
• Importance of Press Freedom:
  • Over 90% in countries like Greece, Sweden, U.K. and others.
  • Under 70% only in India and Kenya.
• Perception of Media Freedom:
  • 80% or higher in India, Sweden, Netherlands, Philippines, Ghana, Australia, Kenya, Thailand.
  • Less than 40% in Chile and Greece.

TH

3. SIPRI Report 2024

Context:

According to the Stockholm International Peace Research Institute (SIPRI), India’s military expenditure in 2024 rose by 1.6% to reach $86.1 billion, nearly nine times larger than Pakistan’s $10.2 billion. This comes amid renewed tensions following the Pahalgam terror attack.

Key Highlights

• India’s Global Rank: 5th largest military spender worldwide
• Pakistan’s Spending: $10.2 billion, far smaller than India’s allocation
• Top Five Military Spenders:
  • United States
  • China
  • Russia
  • Germany
  • India
• These five nations accounted for 60% of total global military spending ($1,635 billion).

India’s Military Context

• Steady annual growth (+1.6%) despite regional challenges
• Investment focus: Modernisation of armed forces, border security, cyber capabilities, and indigenisation under ‘Make in India‘ initiatives
• Strategic imperatives include tensions with China and ongoing security concerns regarding Pakistan.

Global Military Spending Trends

• China:
  • Spent an estimated $314 billion (+7% growth)
  • Marked 30 consecutive years of spending increases
  • Focus areas: Cyberwarfare, nuclear arsenal expansion, and PLA modernisation
  • Accounted for 50% of all military expenditure in Asia and Oceania
• Russia:
  • Spending surged 38% to $149 billion
  • Military spending is now 7.1% of GDP, representing 19% of total government spending
  • Reflects the intensification of the Ukraine conflict
• Ukraine:
  • Military expenditure reached $64.7 billion (+2.9%)
  • 34% of Ukraine’s GDP — the highest military burden globally
• Europe:
  • Military expenditure (including Russia) rose 17% to $693 billion
  • Spending surpassed Cold War levels due to Russia-Ukraine war escalation

Strategic Implications

• India’s rising defence budget reflects its growing emphasis on regional security, force modernisation, and countering China’s military assertiveness.
• The disparity between India and Pakistan’s defence budgets underlines a significant regional military imbalance.
• China’s continued rise as Asia’s dominant military spender challenges strategic stability in the Indo-Pacific.

TH

4. Digital Push for PM Surya Ghar Muft Bijli Yojana

Context:

The Union Finance Ministry has mandated a digital-only model for implementing the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY).

• All processes — from consumer validation to installation verification and site feasibility assessment — must now be conducted via the National Portal, eliminating the need for time-consuming physical verification.

Scheme Overview

• Target: Install rooftop solar systems for 10 million households across India.
• Loan Offering: Standard collateral-free loans up to ₹2 lakh, at Repo + 50 basis points.
• Subsidy Disbursement: Direct transfer to the applicant’s savings bank account via the Public Financial Management System (PFMS).

Current Progress (as of March 31, 2025)

• Applications received: 4.1 million
• Installations completed: 1.1 million
• Loan applications submitted: 375,000
• Loans sanctioned: 200,000+

Bank-Wise Loan Sanction Snapshot

Bank	Applications	Sanctioned Loans
State Bank of India	52,348	26,685
Punjab National Bank	100,711	22,082
Bank of Baroda	45,750	16,010
Canara Bank	36,675	9,551
Union Bank of India	28,471	19,700

Financial and Operational Reforms Proposed

• Performance-Based Vendor Payments: Full subsidies to be disbursed based on vendor ratings.
• New Financial Product: A working capital instrument tailored for rooftop solar vendors.
• Support for CIBIL-Less Applicants: Reforms to ensure access to loans for applicants without credit scores.
• Policy Alignment: Integration of Renewable Finance Obligations and expansion of Priority Sector Lending (PSL).

On-Ground Execution Strategy

• Branch-Level Execution: Training, awareness, and branch-level targets to be strengthened.
• Monitoring: Active involvement of State Level Bankers’ Committees (SLBCs) and District Level Bankers’ Committees (DLBCs).

Technical Challenges Reported

• OTP delays on the PMSGY portal
• Loan option missing post vendor acceptance
• Discom data issues on the Jan Samarth portal
• Suggested Fixes:
  • Functionality to change bank details pre-final submission
  • Final confirmation popup before submission

BS

5. DoSJE and World Bank Host Seminar on SMILE Initiative for Beggars and Homeless

Context:

The Department of Social Justice and Empowerment (DoSJE), Government of India, in collaboration with the World Bank, organized a seminar titled ‘Hard to Reach Population – SMILE (Beggary)’ on 25th April 2025 in New Delhi. The seminar focused on policy brainstorming and strategy development for the rehabilitation of beggars, the homeless, and destitute individuals in India.

Key Highlights

• 18,000 individuals have been identified under the SMILE (Support for Marginalized Individuals for Livelihood and Enterprise) scheme.
• 1,612 people have already been rehabilitated, as shared by Shri Ajay Srivastava, Economic Advisor, MoSJ&E.
• The seminar, held in hybrid mode, emphasized framework development, inter-sectoral coordination, and knowledge sharing for enhancing social protection systems in India.
• Discussions included best practices, community-based interventions, and the role of digital technologies in reaching marginalized populations.

About SMILE Scheme

The SMILE initiative is a flagship program under DoSJE aimed at:

• Comprehensive rehabilitation of persons engaged in begging.
• Promoting dignified livelihoods and social inclusion.
• Strengthening sustainable support systems through partnerships with NGOs, ULBs, and state governments.

About the World Bank

• Founded: 1944
• Headquarters: Washington, D.C., USA
• President: Ajay Banga
• Members: 189 countries
• Institutions: IBRD, IDA, IFC, MIGA, ICSID
• Mission: Providing financial and technical support to help low and middle-income countries pursue development and reduce poverty.

Impact and Way Forward

The DoSJE reaffirmed its commitment to:

• Inclusive growth
• Policy innovation
• Empathetic governance for India’s most vulnerable groups

This seminar is part of a broader series of strategic dialogues to build a just, equitable, and resilient social support ecosystem across India.

Awards

1. Padma Awards 2025

Context:

In a grand ceremony held at Rashtrapati Bhavan’s Durbar Hall, President Droupadi Murmu conferred Padma awards on 71 of the 139 awardees named on the eve of India’s 76th Republic Day. The event was attended by Vice-President Jagdeep Dhankhar, Prime Minister Narendra Modi, Union Home Minister Amit Shah, and other dignitaries.

Key Highlights

• Awards Conferred:
  • Padma Vibhushan (2nd highest civilian honour): 4 recipients
  • Padma Bhushan: 10 recipients
  • Padma Shri: 57 recipients
• Prominent Padma Vibhushan Awardees:
  • Osamu Suzuki (former chief of Suzuki Motor Corporation) — posthumous
  • M.T. Vasudevan Nair (Malayalam writer and filmmaker) — posthumous
  • D. Nageshwar Reddy (Gastroenterologist, AIG Hospitals)
  • Lakshminarayana Subramaniam (Renowned violinist)
• Prominent Padma Bhushan Awardees:
  • Shekhar Kapur (Film director)
  • Nandamuri Balakrishna (Telugu actor)
  • Pankaj Udhas (Singer)
  • Sushil Kumar Modi (Former Bihar Deputy Chief Minister)
  • P.R. Sreejesh (Former hockey player)
  • S. Ajith Kumar (Tamil actor)
  • Pankaj Patel (Chairperson, Zydus Lifesciences)
  • Vinod Dham (Engineer, ‘Father of the Pentium’)
• Notable Padma Shri Awardees:
  • Lakshmipathy Ramasubbaiyer (Publisher, Dinamalar)
  • Arundhati Bhattacharya (Former SBI Chairperson)
  • Pawan Kumar Goenka (Industrialist)
  • Maruti Bhujangrao Chitampalli (Wildlife researcher and Marathi author)
  • Bhimavva Doddabalappa Shillekyathara (Master puppeteer, Togalu Gombeyaata art)
  • A.K. Mahapatra (Former Director, AIIMS and SGPGI)
  • Jaspinder Narula Kaul (Punjabi singer)

Focus on Unsung Heroes

• 30 unsung heroes were honoured, recognising grassroots contributions across fields.
• Notable among them: 100-year-old Libia Lobo Sardesai, a significant figure in Goa’s freedom movement.

TH

Science & Tech

1. How Urbanisation Alters Spider Behavior

Context:

Recent research highlights how urbanisation is impacting wildlife in ways we are only beginning to understand. A study published in Current Biology reveals that spiders in noisy urban environments adapt their web-building techniques to filter out unwanted vibrations, showcasing a remarkable sensory adaptation.

Key Study Details

• Lead Researchers: Brandi Pessman and Eileen Hebets from the University of Nebraska-Lincoln
• Species Studied: Agelenopsis pennsylvanica (funnel-weaving spider)
• Main Findings:
  • Urban spiders build webs that dampen a broad range of ambient vibrations.
  • Rural spiders construct webs that amplify biologically relevant vibrations from farther distances.
  • Webs act as “personal volume dials”, tuning vibratory information crucial for spiders’ survival.

The Broader Significance

• Spiders as Engineers: Spider webs are not just prey-capturing devices; they function as extensions of the spider’s sensory system.
• Urban Challenges: Animals in cities must constantly adapt to noise, light, and chemical pollution.
• Wildlife Adaptability: This research suggests that chronic urban noise could reshape animal behaviors, though more studies are needed to confirm whether such changes improve survival or reproduction.

Mythological and Material Science Context

• In Mythology:
  • West African folklore praises Ananse, the wise trickster spider.
  • Greek mythology tells the story of Arachne, the weaver transformed into a spider.
• In Science:
  • Spider silk’s properties inspire advancements in material science, tissue engineering, and textile production.

Implications for Urban India

• Noise Pollution: Indian cities frequently exceed official noise limits, affecting human and wildlife health alike.
• Beyond Carbon Emissions: According to researcher Shannon Olsson, factors like noise, air, and light pollution can have more immediate effects on wildlife than carbon emissions alone.
• Call to Action: There’s a pressing need to study and communicate the diverse consequences of human activities on ecosystems — a move away from “carbon tunnel vision” to a broader ecological perspective.

Humans and Spiders

• Just like humans, spiders require safe, clean environments and ample food sources.
• As myths and modern science both suggest, all living beings are deeply interconnected — an idea beautifully symbolised by the spider web.

TH

Banking/Finance

1. Finance Minister Nirmala Sitharaman Calls for Action to Strengthen UPI Infrastructure

Context:

Finance Minister Nirmala Sitharaman has directed officials to urgently make the Unified Payments Interface (UPI) system more robust, after multiple service disruptions earlier this month.

• A review meeting was held in New Delhi, attended by:
  • Senior officials from the Reserve Bank of India (RBI)
  • National Payments Corporation of India (NPCI)
  • Finance Secretary Ajay Seth
  • Department of Financial Services Secretary M. Nagaraju

Key Focus Areas

• Enhancing UPI Infrastructure:
  • Strengthen resilience, scalability, and real-time monitoring.
  • Ensure uninterrupted service delivery and bolster user trust.
• Collaborative Approach:
  • Sitharaman urged stakeholders to address infrastructure gaps, improve cybersecurity frameworks, and enhance the end-user experience.
  • The NPCI was specifically instructed to reinforce the robustness of the UPI platform to prevent future service disruptions.

Broader Economic Outlook

• India’s Growth Story:
  • Despite recent global uncertainties and downgrades by international agencies, Sitharaman asserted that India’s economy remains resilient.
  • Projected Growth: India is expected to grow by 6.5% in 2025–26, driven by strong domestic consumption and investment demand.
• External Sector Optimism:
  • Services exports are projected to stay resilient.
  • The recent decline in crude oil prices is expected to support a positive inflation outlook.

BS

2. Tamil Nadu’s New Bill to Regulate Microfinance Sector Raises Concerns

Context:

The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Bill, 2025, aims to prevent coercive loan recovery practices and protect vulnerable borrowers, particularly farmers, women, and self-help groups.

• The Bill proposes:
  • A three-year jail term for coercive loan recovery methods.
  • Penalties for loan recovery agents who harass borrowers or their families.
  • A prohibition on microfinance companies from forcibly collecting dues.
  • A requirement for disputes to be resolved through district-level committees.

Microfinance Industry Response

• Concerns Over Impact: Microfinance players, including small finance banks and non-banking financial companies (NBFCs), are worried that the Bill’s stringent checks and balances could severely impact microlending operations.
  • Senior executive at a small finance bank: “The environment is not conducive to work with so many checks and balances.”
  • Risks: The microfinance sector operates with higher interest rates due to the high-risk nature of lending to low-income groups. Regular loan collection is essential to prevent non-performing assets (NPAs), but the new Bill could disrupt standard practices.

Key Microfinance Institutions in Tamil Nadu

• Muthoot Microfinance: Holds 25% of assets under management (AUM) in the state.
• CreditAccess Grameen: Holds 20% of AUM.
• Ujjivan Small Finance Bank: Holds 14% of AUM.
• Asirvad MFI: Holds 20% of AUM.

Comparative Action in Other States

• Karnataka: Introduced an ordinance in February with similar regulatory measures, including penalties of up to 10 years of imprisonment and ₹5 lakh fines for non-compliance.

Industry Challenges

• Microfinance players argue that regular visits to borrowers’ homes are crucial to managing risk and preventing loan defaults. However, with the proposed regulatory changes, they fear that such operations could be restricted, affecting their ability to manage loans effectively.

BS

3. RBI’s Bond Forward Norms Set to Boost Demand for 10-15 Year State Bonds

Context:

The Reserve Bank of India’s (RBI) new guidelines on bond forwards come into effect from May 2, 2025.

Objective: To help long-term investors manage cash flows and interest rate risks, while expanding the range of interest rate derivative products.

What Are Bond Forwards?

• Bond forwards are contracts where two parties agree to buy or sell a government bond at a predetermined price on a future date.
• Unlike forward rate agreements (FRAs), bond forwards allow physical delivery of securities rather than mere cash settlement.

Key Market Impact

• Focus on State Development Loans (SDLs):
  • Higher demand expected for bond forwards linked to 10-15 year SDLs.
  • Wider yield spreads (around 29 basis points) between 10-year SDLs and benchmark government bonds make this segment attractive.
• Long-Term Investors Benefit:
  • Insurance companies, pension funds, and mutual funds can better hedge against interest rate risks across market cycles.
  • Access to physical bond delivery addresses a key gap in earlier hedging methods like bond FRAs.

How the Market Setup Changes

• Market Makers:
  • Scheduled commercial banks and standalone primary dealers are authorized as market makers.
• Excluded Entities:
  • Small finance banks, payment banks, local area banks, and regional rural banks are excluded from participating in bond forward market making.

Broader Impact

• Enhanced Price Discovery:
  • Encourages better pricing of interest rate risks across different bond maturities.
• Wider Market Participation:
  • Expected to deepen the Indian government securities (G-Sec) market and strengthen hedging mechanisms for long-term investors.

BS

4. PSU Bank Q4FY25 Earnings

IDBI Bank Q4FY25 Performance

• Net Profit: ₹2,051 crore, up 26% YoY, driven by higher non-interest income
• FY25 Annual Profit: ₹7,515 crore, a 33% YoY increase from ₹5,634 crore in FY24
• Dividend: Proposed 21% per share, subject to shareholder approval
• Stock Performance: Rose 3.28% to ₹83.10 on BSE

Key Drivers:

• Higher non-interest income
• Cost efficiencies and improved asset quality

Central Bank of India Q4FY25 Performance

• Net Profit: ₹1,034 crore, up 28% YoY (Q4FY24: ₹807 crore)
• Total Income: ₹10,433 crore vs ₹9,699 crore YoY
• Interest Income: ₹8,619 crore vs ₹8,337 crore YoY
• Net Interest Income (NII): Declined to ₹3,399 crore (Q4FY24: ₹3,541 crore)

Key Drivers:

• Sharp fall in gross non-performing assets (NPAs)
• Higher interest income despite NII decline

UCO Bank Q4FY25 Performance

• Consolidated Net Profit: ₹665.72 crore, up 24% YoY
• Q4FY24 Net Profit: ₹537.86 crore
• Total Income: ₹8,136 crore vs ₹6,984 crore YoY
• Capital Plans:
  • To issue 2.7 billion equity shares in FY26
  • Goal: Bring government stake down to 75% to meet SEBI’s minimum public shareholding norms

Key Drivers:

• Broad-based income growth
• Capital restructuring for regulatory compliance

BS

5. Rupee Gains, Dollar Index Dips: Market Snapshot & RBI Action

Rupee Performance Overview

• INR appreciated by 0.51% in April 2025 and 0.68% year-to-date (YTD).
• As of April 28, the rupee stood at ₹85.03/USD, marking a 0.49% gain for the day.
• Currency momentum remains strong, though psychological support at ₹85 is under watch.
• Top INR appreciation days in 2025:
• April 11: ₹86.05 (▲0.75%)
• Feb 11: ₹86.83 (▲0.74%)
• Apr 28: ₹85.03 (▲0.49%)
• Mar 21: ₹85.98 (▲0.46%)
• Mar 24: ₹85.64 (▲0.40%)

Global Currency Trends

• The US Dollar Index fell by 0.1% to 99.6.
• Global currencies such as the euro, pound, Thai baht, and Malaysian ringgit also appreciated in April, contributing to dollar weakness.
• Continued global optimism and broad dollar correction have supported EM currencies.

Bond Market Developments

• Benchmark 10-year Indian bond yield rose 4 basis points to 6.40% amid:
• Foreign banks’ profit booking
• Geopolitical caution (India–Pakistan tensions)

Upcoming Key Events

• RBI to introduce a new 10-year government bond in the upcoming weekly auction.
  • Bond sale target: ₹30,000 crore.
• RBI Open Market Operations (OMO):
  • Total: ₹1.25 trillion (₹1.25 lakh crore)
  • Schedule: May 6, 9, 15, and 19
  • Objective: Liquidity management and yield stabilization

The Indian rupee is on a strong footing backed by global dollar weakness, foreign fund inflows, and RBI’s proactive market operations. However, bond yields may remain volatile in the near term due to profit-taking and geopolitical risks.

BS

6. SEBI Bans Patel Wealth Advisors for Order Spoofing

Regulatory Action

• Regulator: Securities and Exchange Board of India (SEBI)
• Action Taken:
  • PWA and four directors debarred from the securities market
  • Interim order issued on Monday (April 28, 2025)
  • ₹3.22 crore in alleged illegal gains ordered to be impounded
  • A detailed investigation is underway

What is Spoofing in Stock Markets?

• Spoofing involves placing large fake buy/sell orders far from the market price to create false demand/supply impressions.
• The visible fake order manipulates trader behavior.
• The spoofer then places a small, real order on the opposite side near the market price and profits from the movement.

Sebi’s Findings

• Spoofing activity took place over three years across 193 stocks, with 292 spoofing attempts.
• In one notable case:
  • 548 buy orders were placed in Coffee Day Enterprises.
  • 543 were spoofing orders for ~5.4 crore shares at 20-26% below the market.
  • Only five genuine trades were executed, totaling 52,000 shares.
  • The rest were cancelled after achieving the intended market reaction.

Regulatory Stance and Implications

• Spoofing is classified as a fraudulent and unfair trade practice under Sebi regulations.
• The order underscores Sebi’s increasing scrutiny on algorithmic and order-book-based manipulation.
• Further penalties or prosecutions may follow after completion of the detailed investigation.

Allegation: Order Spoofing

• Definition: Order spoofing is a fraudulent market manipulation tactic involving placing large orders with the intent to cancel, to create false demand/supply signals and mislead other investors.
• SEBI’s Statement: “This is a manipulative, fraudulent and unfair trade practice… It distorted market prices and undermined market efficiency.”

Scope of Manipulation

• Period Investigated: January 2021 to January 2025
• Markets Involved:
  • Cash Segment
  • Derivatives Segment
• Number of Scrips Affected: 173
• Spoofing Instances Recorded: 621 unique cases

Next Steps

• SEBI will conduct a comprehensive investigation to determine further regulatory action or criminal liability, if any.
• The order issued is ex parte and interim, meaning more legal proceedings may follow.

SEBI’s strong action against Patel Wealth Advisors highlights its continued crackdown on market manipulation and unfair trading practices. The case adds to growing scrutiny of algorithmic and high-frequency trading tactics that can distort price discovery in Indian capital markets.

BS

7. SEBI Revises Margin Collection Norms Amid T+1 Settlement Cycle

New Margin Collection Timeline

• Effective Directive: Stock brokers must collect client margins by the settlement day (T+1).
• Applicable Segment: Cash segment (equity market).
• Exclusions:
  • Value at Risk (VaR) margin
  • Extreme Loss Margin (ELM)

Reason for the Change

• The move aligns with the transition to T+1 settlement, replacing the earlier T+2 cycle.
• The T+1 settlement cycle was fully implemented in January 2023 for all listed scrips.
• Objective: To ensure timely risk management and margin discipline in a faster-settlement environment.

Implications for Market Participants

• Stock Brokers:
  • Must adapt systems to collect margins by the next trading day.
  • Ensures they remain compliant and avoid regulatory penalties.
• Investors:
  • Need to ensure sufficient funds or securities are available by T+1.
  • Reduced buffer time for margin compliance.

Regulatory Context

• The move is part of SEBI’s ongoing efforts to streamline risk management and align settlement processes with global best practices.

SEBI’s revision to the margin collection timeline is a critical compliance update for brokers and traders operating in India’s equity markets. It reflects the regulator’s proactive steps in refining post-trade settlement systems under the faster T+1 regime.

TET

8. ASCI Allows Health, Financial Influencers to Share Generic Advice Without Credentials

Context:

The Advertising Standards Council of India (ASCI) clarified that:

• Influencers do not need professional qualifications to share generic information on financial or health products.
• However, technical or specific advice must come from certified professionals registered with SEBI or other regulatory bodies.

Broader Opportunities for Influencer Marketing

• Brands can now engage a wider pool of influencers to promote financial or health services—as long as expert guidance is not implied.
• This opens up new brand collaboration opportunities for non-expert influencers.

“This maintains the integrity of communication in sensitive sectors, while allowing greater creative freedom,” said Manish Kapoor, Secretary General, ASCI.

Relief for Finfluencers and Talent Agencies

• Ayush Shukla of Finnet Media said:
  • The relaxed ASCI guidelines have reassured financial creators after brands backed out amid SEBI’s clampdown on unregulated advice.
  • This could revive partnerships and brand deals in the finfluencer space.

SEBI’s Regulatory Oversight

• ASCI’s update does not override SEBI regulations:
  • SEBI remains the statutory authority for financial conduct and advice on markets.
  • Stock price guidance rules remain strict—finfluencers cannot use live stock data in investor education content; minimum 3-month-old price references are required.

Mint

9. IndusInd Bank Deputy CEO Resigns Over ₹2,000 Crore Derivative Accounting Scandal

Context:

Arun Khurana, Deputy CEO and Executive Director of IndusInd Bank, resigned with immediate effect. His resignation comes after a board-reviewed ₹1,960 crore hit from incorrect accounting of internal derivative trades. Khurana, in his resignation letter, accepted responsibility as the overseer of the treasury front office function.

RBI and Board Context

• The resignation follows the RBI’s decision in March to approve only a one-year extension for MD & CEO Sumant Kathpalia, despite a board recommendation for three years.
• The bank, in a statement, said it would hold staff accountable after concluding its internal investigation.

Investigation Findings

• Independent probe initiated in March 2025 revealed the accounting discrepancies.
• Final report submitted on April 27 found a total adverse P&L impact of ₹1,960 crore as of March 31.
• The bank’s board reviewed the findings over April 26–27.

Nature of the Accounting Lapse

• The error involved internal derivative trades between the asset-liability management (ALM) desk and treasury.
• These trades were recorded using accrual accounting, while external trades were marked to market.
• This led to:
  • Premature booking of gains on external trades
  • Deferral of losses on internal trades
  • Resulting in overstatement of profits

Implications for the Bank and Sector

• This is a major setback for IndusInd Bank’s financial credibility and risk governance.
• Analysts expect regulatory scrutiny to tighten over derivative accounting across Indian banks.
• The case may influence investor confidence, especially in private sector banks engaged in complex treasury operations.

TOI

10. Axis Max Life Launches AI-Powered Bandhan 2.0

Context:

Axis Max Life Insurance Ltd. has unveiled Bandhan 2.0, an AI-enabled augmented reality (AR) platform designed to revolutionize employee onboarding through immersive digital experiences, gamified learning, and leadership interaction.

Key Features of Bandhan 2.0

• Scalable & Self-Paced Induction: Accessible on mobile and desktop, available in English and Hindi, supporting remote onboarding from day one.
• Virtual Leadership Engagement: Offers direct access to strategic insights from Axis Max Life’s top leadership, fostering early alignment.
• Gamified Learning Modules: Introduces new hires to the company’s history, core values, and workplace culture through interactive experiences.
• Faster Onboarding Time: Reduces induction duration, enabling quicker integration and productivity.
• Real-Time HR Dashboards: Tracks onboarding progress and ensures automated compliance and performance metrics.
• Uniform Access Across Geographies: Fully cloud-based system offers consistent experiences for all employees, regardless of location.
• Digital Transformation Alignment: Reinforces the company’s broader push for future-ready HR operations and digital scalability.

Strategic Impact

• The platform is expected to benefit thousands of employees annually, with 60-day post-joining access to support continuous learning.

About Axis Max Life Insurance Ltd.

• A joint venture between Max Financial Services Ltd. and Axis Bank, the company reported a gross written premium of ₹29,529 crore in FY2023-24.
• Known for its customer-centric approach, multi-channel distribution, and digitally enabled insurance solutions.

Economy

1. IIP Growth Shows Modest Recovery in March

Context:

Index of Industrial Production (IIP) grew by 3% in March 2024, showing a slight recovery from February’s six-month low of 2.72%. However, FY25 IIP growth stood at 4%, marking the weakest growth in four years. By comparison, FY24 IIP growth was 5.9%.

The Index of Industrial Production (IIP)

The Index of Industrial Production (IIP) is a composite indicator in India that measures the short-term changes in the volume of production of a basket of industrial products. It’s a key economic indicator used to track the performance of various industrial sectors like mining, manufacturing, and electricity. The Central Statistical Organisation (CSO) compiles and publishes the IIP data monthly. 

• What it measures:The IIP tracks changes in the physical output of industrial products, not just the value of those products. 
• How it’s calculated:The IIP is a weighted average of the production of various industrial goods, with weights reflecting their importance in the overall industrial production. 
• Why it’s important:The IIP provides insights into the health and growth of the industrial sector, helping policymakers, economists, and investors understand the overall economic performance. 

Sector-wise Performance

• Consumer Non-Durables:
  • Contracted by 1.6%.
  • This segment continued to see declining output, contributing to the overall subdued industrial performance.
• Key Growth Sectors:
  • Infrastructure Industries: 6.6% growth.
  • Intermediate Goods: 4.1% growth.
  • Capital Goods: 5.5% growth.
  • Primary Goods: 3.9% growth.
  • Consumer Durables: 7.9% growth, driven by electronics and computers.
• March 2024 Industrial Output:
  • Electricity sector led the growth with 6.3%.
  • Manufacturing sector grew by 3%.
  • However, the mining sector saw a 0.4% decline.

Outlook

• Aditi Nayar, Chief Economist at Icra Ratings, raised concerns about the advancement of data release affecting the estimated growth rate for March, noting that further revisions are expected.
• Looking ahead, the US export frontloading will need monitoring to assess whether it’s driven by redirection from other regions or an actual bump in output.

BS

Facts To Remember

1. Japan, Vietnam sign agreements on semiconductors, clean energy

Japan and Vietnam agreed to deepen ties on semiconductors and clean energy as Japanese Prime Minister Shigeru Ishiba visited Hanoi to shore up ties after Donald Trump’s tariff onslaught. The visit follows Chinese President Xi Jinping’s Southeast Asia tour in which he tried to position Beijing as an alternative to the U.S.

2. Russia declares 72-hour ceasefire next week for WWII Victory Day

Russian President Vladimir Putin on Monday declared a unilateral 72-hour ceasefire next week in Ukraine to mark Victory Day in World War II as the US presses to end the three-year-old war. Kyiv insisted on a longer and immediate truce.

3. Sinha Named New CEO of India Semicon Mission

Amitesh Kumar Sinha has been appointed as the new CEO of the India Semiconductor Mission (ISM), and is an additional secretary at the ministry of electronics and information technology (MeitY), the ISM announced.

4. Union Minister Pralhad Joshi urges MSME collaboration in Green Hydrogen Tech

Union Minister of New and Renewable Energy Pralhad Joshi has said that green hydrogen is the fuel of the future and urged the Micro, Small and Medium Enterprises to collaborate for technology development in the production of Green Hydrogen.

5. India strengthens tourism footprint at Arabian Travel Market 2025 in Dubai

India marked a significantly enhanced presence at the 32nd edition of Arabian Travel Market (ATM), held from April 28 to May 1 at the Dubai World Trade Centre, organised under the theme ‘Global Travel: Developing Tomorrow’s Tourism Through Enhanced Connectivity’, the event brought together 2,800 exhibitors from 161 countries and is expected to welcome 55,000 attendees.

6. MNRE hosts workshop to explore MSME opportunities in National Green Hydrogen Mission

The Ministry of New and Renewable Energy (MNRE) will hold a workshop at Atal Akshay Urja Bhawan, New Delhi, today to explore opportunities for MSMES (Micro, Small and Medium Enterprises) within the National Green Hydrogen Mission.

7. Indian women’s baseball team qualifies for Asian Cup 2025 after thrilling win over Thailand

The Indian women’s baseball team confirmed its qualification for the Asian Cup 2025 after beating Thailand 6-5 in the Super Round stage of the qualifiers in Bangkok, yesterday. Organised by WBSC Asia, the Women’s Asian Baseball Cup is a second-tier competition below the Asian Baseball Championship.