1. Dementia
1. Dementia |
CONTEXT: A recent Lancet Commission report identified two new risk factors for dementia
Background
Dementia, a condition characterized by the decline of cognitive functions, has been a growing concern globally. While age is the most prominent risk factor, recent research has unveiled additional factors that contribute to its development:
- Untreated vision loss: This study found a correlation between vision impairment and an increased risk of dementia. Although the exact mechanism is still under investigation, it is believed that conditions like diabetes, which can lead to both vision problems and dementia, might play a role.
- High cholesterol: The study emphasized the significance of levels high LDL cholesterol, particularly during midlife, as a contributing factor to dementia. This finding strengthens the link between cardiovascular health and brain health.
Dementia: A Growing Challenge
- Dementia is the seventh leading cause of death globally according to WHO.
- The most prevalent form of dementia is Alzheimer’s disease, accounting for 60-70% of cases.
- The number of people living with dementia is expected to nearly triple by 2050, from 57 million in 2019 to 153 million.
Addressing this issue requires a multi-faceted approach, including: (these points can be used for other diseases also)
- Early detection and intervention: Implementing screening programs for vision loss and cholesterol levels, especially in midlife.
- Lifestyle modifications: Promoting healthy habits such as regular exercise, balanced diet, and mental stimulation.
- Research and development: Continued investment in research to understand the causes and develop effective treatments for dementia.
By prioritizing these areas, we can work towards mitigating the impact of dementia on individuals and society.
2. SEBI proposed measures to curb speculation
CONTEXT: The Securities and Exchange Board of India (SEBI) has proposed a series of measures to curb speculative trading in index derivatives (futures and options) following concerns raised by the Finance Minister in the Union Budget 2024-25.
The budget proposed doubling the Securities Transaction Tax (STT) (a tax you pay when you buy or sell stocks) on the F&O segment to check the exponential rise in trading volumes.
Key Issues
- High retail losses: Data shows that in 2023-24, 5 lakh unique individuals and proprietorship firms traded in index derivatives, incurring a cumulative loss of Rs 51,689 crore.
- Increased leverage: The minimum contract size for derivatives was last set in 2015, leading to increased leverage as benchmark indices tripled in value.
- Excessive speculation: The proliferation of option contracts and short-term trading strategies has contributed to market volatility.
Proposed Measures
- Increase minimum contract size:
- Phase 1: Minimum contract value of Rs 15-20 lakh.
- Phase 2: Minimum contract value of Rs 20-30 lakh after 6 months.
- Rationale: To reduce leverage and risk for retail investors.
Strengthen position limits:
- Intraday monitoring of position limits by clearing corporations and exchanges.
- Rationale: To prevent excessive speculation and market manipulation.
Rationalize option strikes:
- Uniform strike interval up to 4% around the prevailing index price.
- Maximum of 50 strikes at contract launch.
- Rationale: To reduce complexity and risk.
Upfront collection of option premiums:
- To mitigate counterparty risk.
- Restrict margin benefits for calendar spread positions:
- To reduce arbitrage opportunities and speculative trading.
Single weekly options contract: To simplify the market and reduce complexity.
Increase margins on expiry day: To address high implicit leverage near expiry.
Expected Impact
These measures are aimed at reducing speculative activity, protecting retail investors, and improving market stability. By increasing the minimum contract size and tightening position limits, SEBI seeks to reduce the risk of large losses for retail investors. Additionally, the rationalization of option strikes and the introduction of upfront margin collection are expected to improve market efficiency and reduce systemic risk.
3. Governor's Overreach: A Threat to Federalism
Key Issues
- Abuse of Discretionary Powers: Governors are increasingly using their power to refer Bills to the President as a tool to obstruct state legislation.
- Subversion of Federalism: This practice undermines the principle of cooperative federalism by granting the Centre an indirect veto over state laws.
- Delay in Governance: The prolonged process of referring Bills to the President and awaiting assent leads to delays in implementing essential state policies.
- Lack of Transparency: The reasons for withholding assent or referring Bills to the President are often not clearly stated, raising questions about the motives behind such actions.
Case Studies
- Kerala: Seven Bills were referred to the President, with four being rejected without explanation.
- West Bengal: Similar instances of delayed assent and referral of Bills to the President have been reported.
Constitutional Implications
- Article 200: Outlines the Governor’s powers regarding assent to Bills: assent, withhold assent, or reserve for President’s consideration.
- Misuse of Article 200: The power to reserve Bills is being misused as a tool to obstruct state legislation.
- Impact on Federalism: This overreach by Governors erodes the principle of federalism by increasing central control over state matters.
Way Forward
- Clear Guidelines: The Supreme Court should provide clear guidelines on the circumstances under which a Governor can refer a Bill to the President.
- Time Limits: Impose time limits for the Governor to assent or refer a Bill.
- Transparency: Mandate clear reasons for withholding assent or referring Bills to the President.
Key Constitutional Articles on Governor |
Article 153: Establishes the office of Governor for each state. Article 154: Vests executive power of the state in the Governor. Article 155: Governor appointed by President. Article 156: Governor holds office at President’s pleasure. Article 161: Governor’s power to grant pardons, reprieves, etc. Article 163: Governor acts on the advice of the Council of Ministers. |
4. Lithium Auction Failure: Challenges in India's Critical Mineral Quest
CONTEXT: The auction for the lithium block in Jammu and Kashmir’s Reasi district failed twice due to a lack of investor interest.
- Extraction Challenges: Difficulties in extracting and processing lithium from hard rock deposits like those in Reasi have deterred investors.
- Substandard Reporting Standards: India’s current mineral reporting standards (UNFC) lack the detail required for investors to assess the economic viability of a mining project, unlike the globally accepted CRIRSCO standards.
Implications
- Delayed Self-Reliance: India’s goal of becoming self-reliant in critical minerals like lithium, essential for the EV and energy storage sectors, faces setbacks.
- Investor Confidence: The repeated auction failures could damage investor confidence in India’s mining sector.
- Policy Gaps: The need for improved mineral exploration, extraction technology, and reporting standards is evident.
Way Forward
- Adopt CRIRSCO Standards: Aligning India’s mineral reporting standards with global best practices is crucial to attract investment.
- Technological Upgradation: Invest in research and development to improve lithium extraction and processing technologies.
- Government-Led Initiatives: Consider government-owned companies or joint ventures to develop critical mineral resources.
Lithium |
Lithium is a soft, silvery-white alkali metal with the atomic number. It is the lightest metal. |
1. Rechargeable Batteries: Lithium-ion batteries are widely used in mobile phones, laptops, digital cameras, and electric vehicles due to their high energy density and long life. 2. Glass and Ceramics: Lithium compounds are used to produce heat-resistant glass and ceramics. 3. Lubricants: Lithium grease is used as a high-temperature lubricant in various industrial applications. 4. Pharmaceuticals: Lithium salts are used in the treatment of bipolar disorder and other mental health conditions. 5. Alloys: Lithium is alloyed with aluminium and magnesium to improve their strength and reduce weight, useful in aerospace application |
5. The Legal Advisory Council (LAC)
Objective: The LAC aims to provide the government with timely legal analysis and insights, similar to the Economic Advisory Council.
Functions:
- Legal Analysis: Conducts legal analyses of issues referred by the government and performs proactive research on contemporary legal matters.
- Expert Consultation: Engages with national law universities and legal experts to ensure laws are constitutionally viable and socially acceptable.
Need:
- Clarifying Legislative Intent: Helps clarify the true intent of specific legislation, preempting legal challenges.
- Evidence-Based Decision Making: Contributes to evidence-based decision-making by providing data-driven insights on complex legal and social issues.
Recent Legal Issues:
- Electoral Bonds Scheme: The Supreme Court ruled the scheme unconstitutional, highlighting the need for thorough legal viability assessments.
- Aadhaar Act: Legal examination prior to implementation could have prevented privacy concerns addressed in the K.S. Puttaswamy v. Union of India case.
Way Forward:
- Proactive Legal Analysis: The LAC would proactively identify potential legal challenges and provide continuous, expert legal advice to the government.
- Collaboration with Law Universities: Regular research inputs from national law universities can aid in formulating better legislation and addressing legal challenges before they escalate.
Difference between LAC and Law Commission
Aspect | Legal Advisory Committee | Law Commission |
Purpose | Provides timely legal analysis and insights to the government | Recommends legal reforms and reviews existing laws |
Function | Offers expert legal opinions and proactive research on specific issues | Conducts comprehensive studies and drafts detailed reports on legal reforms |
Composition | Consists of legal experts, scholars, and practitioners appointed for specific tasks | Composed of legal scholars, judges, and practitioners appointed by the government for a fixed term |
Scope | Focuses on immediate legal issues and provides quick, actionable advice | Engages in long-term projects, reviewing and suggesting reforms for the entire legal system |
Examples of Work | Analyzing the legal viability of new legislation | Reviewing outdated laws and suggesting comprehensive reforms |
