Supreme Court to hear on March 24 plea against sale of electoral bonds
Chief Justice of India Sharad A. Bobde agreed with advocate Prashant Bhushan on Thursday to urgently hear a plea by NGO Association for Democratic Reforms to stay the sale of a new set of electoral bonds on April 1, before Assembly elections in crucial States such as West Bengal and Tamil Nadu.
- TheReserve Bank of India (RBI) and the Election Commission had both said the sale of electoral bonds had become an avenue for shell corporations and entities to park illicit money and even proceeds of bribes with political parties.
- The scheme had “opened doors to unlimited political donations, even from foreign companies, thereby legitimising electoral corruption at a huge scale, while at the same time ensuring complete non-transparency in political funding”.
Electoral Bonds
Focus for Prelims
Rajya Sabha passes Insurance Amendment Bill to increase FDI limit to 74%
The Rajya Sabha on Wednesday passed the Insurance Amendment Bill 2021 that increases the maximum foreign investment allowed in an insurance company from 49% to 74%, amid criticism from the Opposition parties on the clause enabling “control and ownership” by foreign investors.
- Finance Minister Nirmala Sitharaman assured the House that the policy holder’s money will not leave Indian shores and have to be compulsorily invested here. She argued that more FDI would mean greater competition and thus better negotiated premiums for the end user.
- Ms. Sitharaman pointed out that the public sector insurance firms employ only over seven lakh persons while the private sectors have more than 23 lakh employees and agents.
- The reservation policy will continue in the public sector firms, she said.
- She also said since the sector was opened up in 2000 by allowing 26% FDI, there has been a growth in the number of companies, insurance penetration and jobs.
- In 2015, the Narendra Modi government had brought another amendment hiking the FDI limit to 49%.
- “From 2015 onwards, in the last five years, ₹26,000 crore foreign investment has come in and 12 new insurance firms have opened up,” she said.
“All the firms will have to maintain reserves to meet the policy insurance claims. So the citizens’ claims will be protected,” she said. She also pointed to Section 27 (e) of the Insurance Amendment Bill that says “No insurer shall directly or indirectly invest outside of India the funds of Indian policy holders.”
Countering the key criticism by the Opposition parties on handing over “control and ownership” to foreign firms, Ms. Sitharaman said it comes with safeguards. The key management personnel will have to be Indians and therefore will be governed by the Indian laws.
Provisions of the Amendment
FDI limits of various sectors
-Focus for Prelims
LS passes supplementary demand for grants
The Lok Sabha on Thursday passed the supplementary demand for grants (second batch for 2020-21) but not before significant concerns raised by Opposition leaders on the government’s disinvestment and asset monetisation plans, and rising fuel prices.
Various types of grants in Parliament
Charged and Voted Expenditure
Budgetary provisions in India
-Focus for Prelims
