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Journalism of Courage
Take a look at the essential concepts, terms, and phenomena from the static and current parts of the UPSC-CSE. Also, check the answers to the previous MCQ.
Word: Co-location
Subject: Technology, Governance and Ethics
(Relevance: The probability of asking questions directly on corruption cases is less. However, UPSC can frame questions in prelims around key terms if any and agencies/organisations involved are high. Do not miss the larger ethical question which can be formed around such cases. One such question is mentioned in ‘point to ponder’ below. Also, solve the MCQ at the end of the article.)
Why in news?
— Market regulator Sebi has penalised 18 entities, including the National Stock Exchange (NSE), its former managing director Chitra Ramkrishna and group president Ravi Varanasi, in the ‘dark fibre’ case.
— The National Stock Exchange of India Limited (NSE) is India’s largest financial market.
What is co-location?
— Co-location is typically associated with a facility where a third party can lease a rack/server space along with other computer hardware.
— A co-location facility provides infrastructure such as power supply, bandwidth, and cooling for setting up servers and storage of data.
What is dark fibre?
— The dark fibre or unlit fibre, with respect to network connectivity, refers to an already laid but unused or passive optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication.
What is the dark fibre case?
— The case relates to the alleged differential access given to certain broking firms in the form of ‘dark fibre’ at NSE, to connect across the colocation facilities before other members.
What is SEBI, the body in news?
Note: Since UPSC -CSE is not a banking exam, only basic knowledge of this organisation is required.
— SEBI is a statutory body, the non-constitutional body that is set up by a Parliament established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
—T he headquarters of SEBI is situated in Mumbai. The regional offices of SEBI are located in Ahmedabad, Kolkata, Chennai and Delhi.
— SEBI Board consists of a Chairman and several other whole-time and part-time members.
Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision. It has the same powers as vested in a civil court.
—SAT’s decision or order can be appealed to the Supreme Court.
What are the functions of SEBI?
— The basic functions of SEBI are to protect the interests of investors in securities. Also, it promotes and regulates the securities market.
— SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
— Its functions can be generalised to the following three targeted categories:
1) For issuers, it provides a marketplace in which issuers can increase their finance.
2) For investors, it ensures safety and provides information needed.
3) For intermediaries, it enables a competitive professional market for intermediaries.
Note: By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.
Point to ponder: Corruption in higher institutions are a product of governance lapses and calls for instituting checks and balances. Discuss.
MCQ:
Which of the following statements is incorrect?
a) One of the objectives of setting up SEBI was to protect the interests of investors.
b) SEBI as a platform promotes businesses.
c) SEBI is a statutory body, the non-constitutional body that is set up by a Parliament.
d) SEBI conduct audits and inquiries of stock exchanges.
(source: sebi.gov.in)
Answer for the previous MCQ-
UPSC Essentials: One word a day- TiHAN – (b)
