[Mission 2022] Insta– QUED ( Questions from Editorials ) 9 May 2022

Solution: a)

A development finance institution (DFI) also known as a development bank is a financial institution that provides risk capital for economic development projects on non-commercial basis. 

During the pre-liberalised era, India had DFIs which were primarily engaged in development of industry in the country.

In India, the first DFI was operationalised in 1948 with the setting up of the Industrial Finance Corporation (IFCI). Subsequently, the Industrial Credit and Investment Corporation of India (ICICI) was set up with the backing of the World Bank in 1955.

The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.

Solution: d)

Movements in the FCA occur mainly on account of purchase and sale of foreign exchange by the RBI, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the Central Government and changes on account of revaluation of the assets.

Solution: b)

Front-running, which is illegal in India, involves purchasing a stock based on advance non-public information regarding an expected large transaction that will affect the price of the share. When mutual funds make a big order, some fund managers buy the same shares in their personal accounts before executing the MFs’ order. When MFs purchase in huge quantities, the price of the share is expected to go up.

Sebi has categorised front running as a form of market manipulation and insider trading because a person who commits a front running activity expects security’s price movements based on the non-public information. Sebi has investigated and penalised several fund houses and fund managers in the past for front-running.

According to market sources, front-running has been very common in mutual fund houses and foreign portfolio investors.

Source

Solution: c)

Nihangs or Nihang Singhs, originally known as Akalis or Akali Nihangs, are designated the Guru’s knights or the Guru’s beloved, and their origin is associated with the founding of the ‘Khalsa Panth’ by the 10th Sikh Guru, Gobind Singh.

Solution: c)

• Basavanna was a 12th-century philosopher, statesman, Kannada poet and a social reformer during the reign of the Kalachuri-dynasty king Bijjala I in Karnataka, India.
• Basavanna spread social awareness through his poetry, popularly known as Vachanaas. Basavanna rejected gender or social discrimination, superstitions and rituals.
• He introduced new public institutions such as the Anubhava Mantapa (or, the “hall of spiritual experience”), which welcomed men and women from all socio-economic backgrounds to discuss spiritual and mundane questions of life, in open.
• Basavanna championed devotional worship that rejected temple worship and rituals led by Brahmins, and replaced it with personalized direct worship of Shiva through practices such as individually worn icons and symbols like a small linga.