Have a look at the essential concepts, terms and events from the static and current parts of UPSC-CSE. Also, check the answers of the previous MCQs.
Word: co-location
Topic: Technology, Governance and Ethics
(Relevance: Corruption cases are less likely to ask direct questions. However, UPSC can frame questions around key terms if any and the agencies/organizations involved are more. The larger ethical question that forms around such cases can be seen. Don’t miss. One such question is mentioned in ‘Think from point’ given below. Also, solve MCQs at the end of the article.)
Markets regulator SEBI has penalized 18 entities including its former managing director National Stock Exchange (NSE) Chitra Ramakrishna and Group President Ravi Varanasi, in the ‘Dark Fibre’ case.
National Stock Exchange of India Limited (NSE) is the largest financial market in India.
what is co-location,
Co-location is usually associated with a facility where a third party can lease rack/server space with other computer hardware.
A co-location facility provides infrastructure such as power supply, bandwidth and cooling for setting up servers and storing data.
What is dark fiber?
Dark fiber or unlimited fiber, in relation to network connectivity, refers to optical fiber already laid but unused or passive, which is not connected to active electronics/equipment and other data flowing through it and cannot be used for use. Available for fiber optic communication.
what is dark fiber Case?
The matter pertains to alleged differential access to some broking firms as ‘dark fiber’ in NSE to connect collocation facilities in front of other members.
SEBI, what is the body in the news?
Note: Since UPSC -CSE is not a banking exam, only basic knowledge of this organization is required.
SEBI is one statutory body, non-constitutional body It is established by the Parliament established on 12 April 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
—T the headquarter of SEBI is located in Mumbai. SEBI’s regional offices are located at Ahmedabad, Kolkata, Chennai and Delhi.
SEBI Board consists of a Chairman and several other full time and part time members.
Securities Appellate Tribunal (SAT) has been constituted to protect the interests of entities aggrieved by the SEBI’s decision. It has the same powers as are vested in a civil court.
An appeal can be made to the Supreme Court against the decision or order of SAT.
What are the functions of SEBI?
The basic function of SEBI is to protect the interest of investors in securities. In addition, it promotes and regulates the securities market.
SEBI is a quasi-legislative and quasi-judicial body that can draft rules, conduct inquiries, pass judgments and impose penalties.
Its functions can be generalized into the following three target categories:
1) For issuers, it provides a market in which issuers can expand their finances.
2) For investors, it ensures safety and provides necessary information.
3) For intermediaries, it enables a competitive professional market for intermediaries.
Comment: By the Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme of Rs. 100 crore or more and attach assets in cases of non-compliance.
Point to consider: Corruption in higher institutions is a result of governance lapses and demands check and balance. discuss.
MCQs:
Which of the following statement is wrong?
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, non-constitutional body which is set up by the Parliament.
d) SEBI audits and conducts inquiries on the stock exchanges.
(Source: sebi.gov.in)
Answers for previous MCQs-