TCYonline.

com

_________________________________________________________________________________
TCYonline.com

Economy/Business

Jet-Etihad Deal Approved by SEBI
SEBI approved the Jet-Etihad deal. Jet Airways had proposed to sale 24 percent stake to Abu Dhabi based
Etihad. The Jet-Etihad deal was announced in April 2013 and because of objections from regulators, the deal
was stuck half-way. The proposal will now be considered by the Cabinet Committee on Economic Affairs.
The Competition Commission of India (CCI) had also asked for changes in the original deal. The two parties
had informed the fair trade regulator about the changes in the deal and approval from the CCI is expected
soon.
With this deal in place, Jet eventually has 51 percent stake in the company, Etihad has 24 percent and the
public has the remaining 25 percent.

Indias GDP Grew at 4.7% in 2013-14
The annual economic publication of Asian Development Bank (ADB) titled Asian Development Outlook
released in October 2013 lowered the Indian economic growth forecast for 2013-14 to 4.7 percent. It is
significantly lower than the earlier projection of 6 percent in April 2013.
Asian Development Outlook also forecasted the 2014-15 growth at 5.7 percent. The 5.7 percent growth
projection for 2014-15 is however lower than the earlier forecast of 6.5 percent.
The Asian Development Bank also noted that Indias inflation for 2013-14 would be at 6.5 percent, below the
7.2 percent forecast in April 2013.

Other highlights of the Asian Development Outlook
Growth in developing Asia is forecasted to decline marginally to 6.0 percent in 2013 from 6.1 percent in
2012.
In the People's Republic of China, growth is expected to moderate to 7.6 percent in 2013 from 7.7 percent in
2012.
Slower growth in Asia's two giants hampers, but does not hobble, the growth across Asia.
Inflation in developing Asia is projected dipping to 3.6 percent in 2013 from 3.7 percent in 2012 as weaker
growth and tepid commodity prices keep price pressure in check. Inflation is expected to return to 3.7 percent
in 2014.
Prospective tapering of the US quantitative easing has destabilised financial markets in developing Asia and
other emerging economies, in particular India and Indonesia.
Developing Asia faces the twin challenges of maintaining financial stability and sustaining growth.

About the Asian Development Bank (ADB)
Asian Development Bank is a regional development bank established on 22
nd
August 1966 to facilitate
economic development of countries in Asia.
The main motto of the Asian Development Bank is to eradicate the poverty in Asia and Pacific.
The headquarters of the Asian Development Bank are located in Manila, Philippines.


TCYonline.com

_________________________________________________________________________________
TCYonline.com

Government of India Appointed a Committee to Define FDI and FII
The Government of India appointed a four-member committee headed by Arvind Mayaram, Economic Affairs
Secretary. The committee was set up to clear the ambiguity between Foreign Direct Investment (FDI) and
Foreign Institutional Investment (FII).
The committee will look into the difference between them and it will also give definition of FDI and FII.
The other members of the committee were the Secretary of the Department of Industrial Policy and Promotion
(DIPP), the Deputy Governor of the Reserve Bank of India and a whole time member of market regulator
SEBI.
Anyone investing in a company 10 percent or less is considered as FII and above 10 percent is considered as
FDI.
Food Security Scheme Launched by Rajasthan CM Ashok Gehlot
Rajasthan Chief Minister Ashok Gehlot launched Food Security scheme in the State aimed at benefiting
around 4.64 crore people.
Rajasthan is the first Indian State to implement the Food Security Act after National Food Security Act
enacted on 10
th
September 2013.
After three months of survey across the state, the state government has selected around 90 lakh families
(about 4.64 crore people) as beneficiaries under the scheme.

India is the Largest Recipient of Foreign Remittances: World Bank Report

The World Bank report entitled Migration and Remittance Flows: Recent Trends and Outlook- 2013-
16 released in October 2013 revealed that India emerged as the largest recipient of foreign remittances
among developing economies in 2013.
In 2013, Non-Resident Indians (NRI) sent a record 71 billion dollars home compared to 70 billion dollars in
2012. According to a Word Bank report, NRIs are estimated to remit up to 85 billion dollars a year by 2015.
The World Bank, in its report, stated that India and China will represent nearly a third of the total remittances
to the developing world in 2013.
The surge in remittances continues despite the recent decline in the rupee against the dollar. The gulf
countries account for nearly 40 percent of remittances in India, while it was 48 percent to South Asian
countries.

Report Highlights
1. The developing world is expected to receive 414 billion dollars in migrant remittances in 2013, an increase
of 6.3 percent over the previous year (2012). This is projected to rise to 540 billion dollars by 2016.
2. The top recipients of officially recorded remittances for 2013 are India (with an estimated 71 billion dollars),
China (60 billion dollars), the Philippines (26 billion dollars), Mexico (22 billion dollars), Nigeria (21 billion
dollars) and Egypt (20 billion dollars). Other large recipients include Pakistan, Bangladesh, Vietnam and
Ukraine.
3. As a percentage of GDP, the top recipients of remittances, in 2012, were Tajikistan (48 percent), Kyrgyz
Republic (31 percent), Lesotho and Nepal (25 percent each) and Moldova (24 percent).

TCYonline.com

_________________________________________________________________________________
TCYonline.com

FDA of Ghana Blacklisted Bliss GVS Pharma Limited

The Food and Drugs Authority (FDA) of Ghana banned the importation and distribution of all medicinal
products manufactured by an Indian company Bliss GVS Pharma Limited. India.

While announcing the ban on Bliss GVS Pharma Limited in Ghana, the Food and Drugs Authority (FDA) told
that the company is not following the registration requirements as enshrined in the Public Health Act of 2012,
Act 851, a process which assures the quality, safety and efficacy of all medicinal products.

The official of FDA also told that the company manufactured a fake anti-malarial medicine (GSUNATE PLUS
SUPPOSITORIES). The efficacy and safety of this anti-malarial medicine has not been ascertained since
there has not been any clinical trial study to justify the use of this medicinal product for the treatment of
malaria.

SEBI Approved Major Reforms to Attract Overseas Investors

SEBI ushered in major reforms to attract overseas investors. It has announced new Foreign Portfolio Investor
regulations for easier registration process and operating framework for investors from abroad. The new class
of investors - FPIs - will encompass all Foreign Institutional Investors, their sub-accounts and Qualified
Foreign Investors. They will be divided in three categories as per their risk profile.
The Know Your Client - KYC requirements and other registration procedures will be much simpler for FPIs
compared to current practices. The SEBI has also decided to grant them a permanent registration.
SEBI also approved setting up Designated Depository Participants which will register FPIs on behalf of the
market regulator subject to compliance with KYC norms.

RBI Reduced the MSF Rate to 9 Percent from 9.5 Percent

The Reserve Bank of India (RBI) reduced the Marginal Standing Facility (MSF) rate to 9 percent from 9.5
percent to improve liquidity in the system. In a release issued from Mumbai, the RBI stated that the decision
was taken after a review of evolving liquidity conditions. MSF allows banks to borrow money from RBI at a
higher rate when there is a significant liquidity crunch.
The RBI further stated that it conducted open market purchase operations of 9974 crore rupees with the aim
of injecting liquidity into the system.
This is the second reduction in the rate since the September 20 mid-quarter monetary policy review, when it
was lowered to 9.5 percent from 10.25 percent.

Indira Gandhi International and Birmingham Airports Signed MoU to Become Sister Airports

Indira Gandhi International Airport, New Delhi and Birmingham Airport, UK signed a Memorandum of
Understanding (MOU) to formalise a working relationship and commit to developing links between the two
cities (Birmingham and Delhi).

TCYonline.com

_________________________________________________________________________________
TCYonline.com
CEO of Birmingham Airport Paul Kehoe and Head of Airline Marketing and Route Development of Delhi
International Airport Limited (DIAL) Kiran Jain signed the MoU at the World Routes Conference in Las Vegas
to become Sister Airports.

Birmingham Airport
Located in the centre of the UK, Birmingham Airport handles more than nine million passengers a year and
is the third largest airport outside London.
It has a core catchment of ten million people and some 200,000 Indian people live in the West Midlands
region alone, 15 percent of Englands total.

Indira Gandhi International Airport, Delhi
Indira Gandhi International Airport in Delhi handles 36 million passengers and well over half a million ton of
cargo pass through it annually.

General Awareness

Peter Higgs and Francois Englert won the Nobel Prize for Physics, 2013.
Peter Higgs, United Kingdom and Francois Englert, Belgium were jointly awarded the Nobel Prize for Physics,
2013.
They were awarded for the theoretical discovery of a mechanism that contributes to our understanding of the
origin of mass of subatomic particles. Their contribution forms the cornerstone of modern particle physics.
Higgs and Francois Englert discovered a quantum field, which is a distribution of energy throughout the
universe. It is a field with special properties. When the field is disturbed, waves travel through it. The dimmest
possible wave is called a particle in the field. They called this field as Higgs field. In the Higgs field, particles
are called as Higgs boson.
The existence of Higgs boson was confirmed through the discovery of the predicted fundamental particle by
the ATLAS and CMS experiments at CERN's Large Hadron Collider (LHG) near Geneva, Switzerland.

About the Higgs Boson
Higgs boson is popularly known as the God particle.
It is a sub-atomic particle.
Elementary particles may have gained their mass because of the Higgs boson particle.

The Union Cabinet Approved on the National Identification Authority of India Bill
The Union Cabinet of India approved the National Identification Authority of India Bill that will give statutory
status to the Unique Identification Authority of India (UIDAI).
The new law will provide for the creation of a National Identification Authority of India. It will oversee
implementation of the Aadhaar project. It also seeks to define penalties in case of misuse of data collected
under the Aadhaar project.
The cabinet took this decision in the background of recent Supreme Court judgment related to Aadhaar cards
will not be mandatory for availing services or benefits under Government schemes without any legal status.

Supreme Court Judgment related to the Aadhaar cards


TCYonline.com

_________________________________________________________________________________
TCYonline.com
The Supreme Court of India on 23 September 2013 ruled that Aadhaar cards or Unique Identification number
(UID) will not be mandatory for availing services or benefits under Government schemes like LPG subsidy,
transfer benefits, food security, vehicle registration, scholarships, marriage registration, salaries and provident
fund, etc.

Main Objective of UIDIA Scheme
Unique identification project was initially started by the Planning Commission as an initiative that would
provide identification for each resident across the country.
It would be used primarily as the basis for efficient delivery of welfare services. It would also act as a tool for
effective monitoring of various programmes and schemes of the government.
The government also created and approved the position of the Chairperson of the UIDAI.
Mr. Nandan Nilekani has been appointed as the first Chairperson of UIDIA and he holds the rank and status
of Cabinet Minister.

James Rothman, Randy Schekman and Thomas Suedhof Won the 2013 Nobel Prize for Medicine

James Rothman and Randy Schekman of US as well as German-born Thomas Suedhof won the 2013 Nobel
Prize for medicine and physiology. They were awarded for their groundbreaking work on how the cell
organises its transport system.

The three of them discovered the complex transport system in the human body, which makes the delivery of
the life-saving proteins and molecules at the right place and right time. James Rothman, Randy Schekman
and Thomas Suedhof work at the Yale University, University of California and Stanford University
respectively.
It is important to note that disturbances in complex transport system of the human body can have poisonous
effects and can also contribute towards the conditions like immunological disorders, neurological diseases
and diabetes. The Nobel Committee announced that the three of them were honoured for their discoveries of
machinery regulating vesicle traffic, a major transport system in our cells. The value of each prize is 1.2 million
US dollars.

Individual Contribution

In their discovery, Schekman discovered a set of genes which are needed for vesicle traffic.
Rothman discovered the protein machinery which enables the vesicles to fuse with their targets in order to
allow the transfer of cargo.
Sudhof, in the meanwhile, revealed how the signals instruct the vesicles to release cargo with accuracy.

Union Cabinet Approved the Creation of a New State of Telangana

The Union Cabinet approved the creation of a new state of Telangana by bifurcating the existing state of
Andhra Pradesh.
Union Cabinet decisions

TCYonline.com

_________________________________________________________________________________
TCYonline.com
1. The city of Hyderabad will function as the common capital for both the states (Telangana and Seemandhra)
for a period of ten years.
2. The Union Cabinet has also approved the setting up of a Group of Ministers (GoM) to work out the various
legal and administrative measures to ensure the safety and security of the residents of all the regions of the
state including the guarantee of the Fundamental Rights.


3. The Group of Ministers will also work out the modalities for the provision of special financial disbursements
required for the setting up of a new capital for the residuary state of Andhra Pradesh and to meet the special
needs of the backward regions and districts of the two states.
The new state will have a geographical area of 10 of the 23 districts of undivided Andhra Pradesh.
The districts that will be a part of the new state are Hyderabad, Adilabad, Karimnagar, Khammam,
Mahaboobnagar, Medak, Nalgonda, Nizamabad, Rangareddy and Warangal.

India Re-elected in the New Council of ICAO

India was re-elected in the new Council of International Civil Aviation Organisation (ICAO) as one of the states
making the largest contribution to the provision of facilities for international civil air navigation. The 38
th

session of the Assembly of ICAO completed the election of the Council in Montreal. The 36-member council is
the governing body of the organisation and is elected for a three-year term.
A specialised agency of the United Nations, ICAO was created in 1944 to promote the safe and orderly
development of international civil aviation throughout the world. It sets standards and regulations necessary
for aviation safety, security, efficiency, capacity and environmental protection, amongst many other priorities.
The organisation serves as the forum for cooperation in all fields of civil aviation among its 191 Member
States.

S.Varadarajan Took over as the CMD of Bharat Petroleum Corporation Limited

S. Varadarajan succeeded R.K. Singh as Chairman and Managing Director (CMD) of Bharat Petroleum
Corporation Limited (BPCL).
Prior to his appointment as the CMD, Varadarajan was serving as the Director (finance) of the company.

About S. Varadarajan

Varadarajan is a member of the Institute of Chartered Accountants of India and a member of the Institute of
Cost and Works Accountants of India.
S. Vardarajan had also served as Executive Director (corporate finance) and was responsible for overall
treasury management, risk management, corporate accounts, taxation and budgeting.
He has also served as the chief financial officer of Bharat Shell Limited, a joint venture between BPCL and
Shell International.
As Director of finance, he successfully completed BPCLs maiden issue of unsecured bonds in the
international market, which was oversubscribed by 15 times, the largest offering for an Indian company in
2012.


TCYonline.com

_________________________________________________________________________________
TCYonline.com
Ranjan Mathai Appointed as India's High Commissioner to United Kingdom

Former Foreign Secretary Ranjan Mathai was appointed as India's High Commissioner to the United
Kingdom. He will succeed noted economist and veteran diplomat Dr. Jaimini Bhagwati. However, he will take
up the charge of the office later.
About Ranjan Mathai
Ranjan Mathai joined the Indian Foreign Service in 1974 and has served in Indian embassies in Vienna,
Colombo, Washington, Tehran and Brussels.
As Joint Secretary in the Ministry of External Affairs in New Delhi from January 1995 to February 1998, he
headed the division dealing with India's relations with Bangladesh, Sri Lanka, Myanmar and Maldives.
Ranjan Mathai played a critical role in the Indo-Bangla Ganges Water Sharing accord during Sheikh Hasina's
first stint as the Prime Minister.
He also served as Indian Ambassador to Israel from February 1998 to June 2001 and as the Indian
Ambassador to Qatar from August 2001 to July 2005.
He held the post of Deputy High Commissioner of India to the UK in London from August 2005 to January
2007.
Ranjan Mathai served as Foreign Secretary for a period of two years and handed over the charge to his
successor Sujatha Singh in July 2013.