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Insights Daily Current Events, 22 October 2015

Insights Daily Current Events, 22 October 2015

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Paper 3 Topic: Effects of liberalization on the economy.

FinMin imposes anti-dumping duty on Chinese auto parts

Following the recommendations of the directorate-general of anti-dumping and allied duties, the finance ministry has imposed anti-dumping duties on imported Chinese parts used in commercial vehicles for a period of five years and some other products imported from various other countries.

Other products on which anti dumping duties are imposed:

  • Chinese items imported into India at prices less than even cost of production, such as front-axle beam and steering knuckles meant for heavy and medium commercial vehicles.
  • Fully-drawn or fully-oriented yarn, spin-drawn yarn, and flat yarn of polyester (non-textured) imported from China and Thailand.
  • Plain medium density fibre board of thickness 6 mm and above, imported from China, Malaysia, Thailand and Sri Lanka.
  • Hexamine, which is used in making of phenolic resins, if imported from China and the United Arab Emirates.

What is anti dumping duty?

Anti dumping is a measure to rectify the situation arising out of the dumping of goods and its trade distortive effect. The purpose of anti dumping duty is to rectify the trade distortive effect of dumping and re-establish fair trade. The use of anti dumping measure as an instrument of fair competition is permitted by the WTO. It provides relief to the domestic industry against the injury caused by dumping. It is levied on distrustfully low-priced imports, so as to protect the domestic manufacturers.

sources: BS, finmin.

 

Paper 2 Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Cabinet decisions

The Cabinet has cleared two ordinances for expeditious settlement of commercial disputes that would improve ease of doing business in the country. It gave its nod to ordinances to amend the Arbitration and Conciliation Act and bring into force the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 pending before a Parliamentary standing committee.

Nod to amend the Arbitration and Conciliation Act:

  • The ordinance to amend the Arbitration and Conciliation Act is aimed at making India a favourable place to settle disputes through arbitration.
  • The Cabinet move has come amid companies such as Vodafone choosing overseas courts for this purpose.
  • The amendments include specifying and restricting the term ‘Public Policy of India’ on whose ground an arbitral award could be challenged.
  • According to the amendments, an award would be construed as against the Public Policy of India if it is induced or affected by fraud or corruption, or is in contravention of the fundamental policy of Indian law or is in conflict with the most basic notions of morality or justice.
  • The amendments, based on the recommendations of the Law Commission, would also put various timelines for order of arbitration panel.
  • There would also be a change in the existing law to the effect that mere filing of an application for challenging the award would not automatically stay execution of the award. The award can only be stayed where the court passed any specific order on an application filed by the party.

The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015:

  • The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Bill, 2015 would enable setting up of commercial benches in high courts for expeditious resolution of disputes.
  • The Department Related Standing Committee on Law and Personnel will table its report on the Bill in Parliament by November 30.
  • After being referred to a Rajya Sabha Select Committee during the United Progressive Alliance’s tenure, the Bill was sent to the Law Commission.
  • Based on the law panel’s recommendations, the National Democratic Alliance government re-drafted the Bill as part of its ease of doing business initiative.

sources: PIB.

 

Paper 2 Topic: Statutory, regulatory and various quasi-judicial bodies.

Sebi notifies 12 entities as stock exchanges, creates 7 departments

With commodities derivatives regulation under its fold, the Securities and Exchange Board of India (Sebi) has notified 12 commodity bourses and associations as stock exchanges and has also created seven departments for effectively regulating this market.

  • To fulfil its additional responsibility of regulating the commodity derivatives market, Sebi has created additional seven departments like legal affairs, surveillance investigations and enforcement divisions.
  • It has also created departments for commodity derivatives market regulation, market intermediaries regulation and supervision and economic policy and analysis.

Sebi was recently merged with the Forward Market Commission (FMC). Sebi was set up in 1988 as a non-statutory body for regulating the securities markets, while it became an autonomous body in 1992 with fully-independent powers.

sources: bs.

 

Paper 2 Topic: India and its neighborhood- relations.

Signing of a treaty between India and Maldives on Mutual Legal Assistance in criminal matters

The Union Cabinet has given its approval for signing of a Mutual Legal Assistance Treaty in Criminal Matters between India and the Maldives.

  • The Treaty aims to enhance effectiveness of both countries in investigation and prosecution of crime, through cooperation and mutual legal assistance in criminal matters.maldives
  • In the context of transnational crime and its linkages to terrorism, the proposed Treaty will provide a broad legal framework for bilateral cooperation with Maldives in investigation and prosecution of crime as well as in tracing, restraint and confiscation of proceeds, and instruments of crime as well as funds meant to finance terrorist acts.

About Mutual Legal Assistance Treaty (MLAT):

  • MLAT is an agreement between two or more countries for gathering and exchanging information to enforce public or criminal laws.
  • Under the agreement, mechanisms have been developed among nations for requesting and obtaining evidence for criminal investigations and prosecutions.

sources: pib.