CURRENT AFFAIR
OXFOM REPORT ON INEQUALITIES
The anti-poverty charity ‘Oxfam International’ gave report titled “An Economy for the 1%” What the report says:
Since 2000 the poorest half of world population has received just 1% of the total increase in global wealth, while 50% increase has gone to top 1%.
Total wealth of 62 individuals = wealth of 3.6 billion individuals
These 62 individual are 44% wealthier than they were in 2010
Growing economic disparity also compounds existing inequalities between social groups, notably
gender inequality.
According to a World Bank forecast, if pro-poor growth moves are not visible soon, by 2030,
almost half-a-billion people will still live in extreme poverty.
Inequality poses a threat to economic expansion and social cohesion around the world.
Suggestions in the report to reduce inequality:
Check the influence of the very rich and to empower people who are currently excluded from the power structure
For workers, they suggest increasing minimum wages towards living wages, promoting transparency on pay ratios and protecting workers’ rights to unionize and strike.
End of tax havens, describing them as unjust and a legal means that allowed the rich to remain rich, estimating that tax havens help the rich hide $7.6 trillion.
Governments should work towards creating a worldwide tax transparency system
CHANGES IN GOLD MONETIZATION SCHEME
About Gold Monetization:
Gold monetisation scheme was launched in November 2015. It allows people to deposit gold jewellery or bars with banks or designated collection agents. In return, they get up to 2.50 per cent tax-free interest per annum and an exemption from capital gains made through trading or at the time of redemption.
Changes introduced:
-Allowing premature redemptions after three years and five years for medium term and long term
deposits, respectively. The interest payable to depositors in such cases would be reduced, while
allowing them an exit option.
-The quantity of gold collected will be expressed up to three decimals of a gram to give consumers
better value for their gold deposits that can be of any purity level.
Gold depositors can now give their gold directly to the refiner rather than only though collection and purity testing centres (CPTCs)
Banks would now be paid a 2.5 per cent commission for their services on medium and long term deposits which include testing the purity of gold deposits, refining, storage and transportation.
Banks have also been given the freedom to hedge their positions in the case of short-term deposits, and issues around interest rate calculation as well as extending loans against gold deposits.
The numbers of refiners under the scheme are also likely to go up with the Bureau of Indian Standards (BIS) modifying the licensing condition that mandated three years’ experience to one year refining experience.
SEBI PANEL SUGGESTS REFORMS TO GROW ALTERNATIVE FUNDS INDUSTRY What is AIF?
Anything alternate to traditional form of investments gets categorized as alternative investments. (AIFs) are defined in Regulation 2(1)(b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company which are not presently covered by any Regulation of SEBI nor coming under the direct regulation of any other sectoral regulators in India-IRDA,PFRDA, RBI
AIFs are categorized into the following three categories:
Category I AIF are those AIFs with positive spillover effects on the economy. Such funds generally invests in start- ups or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable. .eg. Venture Capital Funds, SME Funds, Social Venture Funds and Infrastructure Funds.
Category II AIF are those AIFs for which no specific incentives or concessions are given. eg. Private Equity or debt fund.
Category III AIF are funds that are considered to have some potential negative externalities in certain situations and which undertake leverage to a great extent; with a view to make short term returns. No specific incentives or concessions from the government or any other Regulator.eg. Hedge
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