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CURRENT AFFAIRS – 25/01/2024

CURRENT AFFAIRS - 25/01/2024

CURRENT AFFAIRS – 25/01/2024

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  1. CURRENT AFFAIRS – 25/01/2024

CURRENT AFFAIRS – 25/01/2024

India’s problem — different drugs, identical brand names

(General Studies- Paper III)

Source : TH

Recently, oncologist Dr. Vincent Rajkumar expressed concern about the identical brand names ‘Linamac’ being used for two different drugs treating entirely different conditions.

  • One variant, ‘Linamac 5,’ is used in the treatment of multiple myeloma (a type of cancer), while the other ‘Linamac’ is a diabetes medication.
  • This issue is not new in India, as the medical community has long complained about the use of identical trade names for drugs with distinct active ingredients.

Key Highlights

  • Historical Perspective:
    • The problem of identical trade names has persisted for decades in India.
    • Notable examples include the brand name ‘Medzole,’ utilized by four different companies for drugs containing diverse active ingredients addressing unrelated medical conditions.
      • The first company employs ‘Medzol’ for a sedative containing Midazolam, while the second uses ‘Medzole-DSR’ for a combination of domperidone and pantoprazole to treat stomach acidity.
      • The third and fourth companies use ‘Medzole 400’ and ‘Medzole 200,’ respectively, for formulations containing albendazole (deworming treatment) and itraconazole (antifungal drug).
    • Widespread Issue:
      • The concern extends beyond identical trade names to include similar names that are both phonetically and visually alike.
      • For instance, ‘Medpol’ is used by one company for paracetamol, ‘Medrol’ by another for a corticosteroid, and ‘Metrozole’ by a third for an antibiotic.
      • These names not only sound similar to ‘Medzole’ but also resemble each other, with only a few letters being substituted.
    • Potential Consequences:
      • The consequences of such naming practices are serious, particularly when it comes to patient safety.
      • Confusion at pharmacies could lead to patients receiving the wrong medication, with potentially harmful outcomes.
      • The issue persists despite longstanding complaints from the medical community, highlighting the need for regulatory measures to address this ongoing problem in the pharmaceutical industry.
    • Dual Use of Brand Names by Same Company:
      • In India, the issue of confusing drug names extends beyond different companies using identical or similar names.
      • Some pharmaceutical companies reuse successful brand names for distinct formulations.
      • For example, the brand ‘I-Pill’ is used for both an emergency contraceptive containing Levonorgestrel and a daily contraceptive named ‘i-Pill Daily’ containing Levonorgestrel and Ethinylestradiol.
      • These formulations serve different purposes – emergency contraception after intercourse and daily contraception to prevent ovulation and fertilization.
      • Any mix-up at the pharmacy level could lead to unintended pregnancies.
    • Unique Challenges in India:
      • The use of identical or similar names is particularly concerning in India due to two main reasons.
      • Firstly, drug packaging in the country displays names and prescription information predominantly in English, a language understood by less than 10% of the population.
      • Secondly, the regulatory oversight of Indian pharmacies is suboptimal, with many operating without prescriptions and lacking trained pharmacists registered with the Pharmacy Council of India.
      • This combination of factors increases the likelihood of errors in drug dispensing, further exacerbated by confusing brand names.
    • Historical Awareness and Judiciary Intervention:
      • The problem of similar or identical trade names in the pharmaceutical industry has been recognized for decades.
      • Both the Supreme Court of India (Cadila Health Care Ltd. vs Cadila Pharmaceuticals Ltd., 2001) and the Parliamentary Standing Committee on Health and Family Welfare (59th report, 2012) recommended that the Ministry of Health establish processes to prevent the use of confusingly similar names for drugs.
      • However, these recommendations were initially ignored until 2019 when Justice Pratibha M. Singh of the Delhi High Court, a former intellectual property lawyer, emphasized the issue in a case of pharmaceutical trademark infringement.
      • Pharmaceutical companies in India frequently engage in legal battles over similar-sounding trademarks, prompting calls for stricter regulatory measures to prevent such confusion in the industry.
      • Under the oversight of Justice Pratibha M. Singh, the Ministry of Health introduced the Drugs and Cosmetics (Thirteenth Amendment) Rules in 2019.
      • However, the rules established a weak system, requiring pharmaceutical companies to submit an “undertaking” to State drug controllers along with their manufacturing license applications, asserting that the proposed drug’s brand name would not cause confusion in the market.
      • The process involved companies conducting searches in various databases, including the trademarks registry and the CDSCO’s central database, as well as literature and internet sources.
    • Flaws in the Regulatory Framework:
      • This system had inherent flaws.
      • Firstly, self-certification proved ineffective in India, as evidenced by the continued prevalence of drugs with confusingly similar names.
      • Secondly, even if companies wished to comply, there was no comprehensive database of all pharmaceutical brand names in India.
      • The CDSCO would need to gather data from the 36 different drug controllers across each State and Union Territory to build such a database, making the process impractical.
    • Lack of Prescription Error Data:
      • India lacks comprehensive data on prescription errors.
      • The Ministry of Health’s reluctance to acknowledge the issue is reflected in the absence of data, and without recognizing the problem, reform efforts are hindered.
      • Unlike the United States and Europe, where specific divisions within drug regulators examine drug names to minimize confusion and prescription errors, there is a notable absence of political will within India’s Drug Regulation Section to implement similar reforms.
    • Call for Reforms:
      • The need for the Ministry of Health to acknowledge the existence of the problem and initiate reforms is critical.
      • Drawing parallels with the United States and Europe, the author emphasizes the importance of dedicated divisions within drug regulators to scrutinize drug names based on various factors to mitigate confusion and minimize prescription errors.
      • The current lack of political will within India’s Drug Regulation Section is seen as a barrier to implementing necessary reforms in the pharmaceutical sector.

Posthumous Bharat Ratna Awarded to Karpoori Thakur

(General Studies- Paper I)

Source : The Indian Express

The Indian government has announced the posthumous conferment of the Bharat Ratna, the highest civilian award, to Karpoori Thakur, former chief minister of Bihar.

  • The decision comes during Thakur’s birth centenary year, recognizing his significant contributions to the state and his advocacy for the dignity, self-respect, and development of marginalized sections of society.

Key Highlights

  • Political Legacy:
    • Karpoori Thakur, also known as ‘Jannayak’ or the leader of the people, led a politically contrasting life.
    • Despite hailing from the minority nai (barber) caste, he emerged as Bihar’s foremost backward caste leader.
    • His mentorship played a crucial role in the rise of leaders like Lalu Prasad from the Yadavs and Ram Vilas Paswan among Dalits, eventually impacting his own political standing.
    • Thakur served as chief minister twice, with brief tenures, but his radical policy decisions left a lasting impact and continue to resonate.
  • Advocacy for the Disadvantaged:
    • Thakur’s political journey was marked by a relentless struggle for the rights and development of the most disadvantaged sections of society.
    • His commitment to securing dignity and self-respect for marginalized communities remains a focal point of his legacy.
  • Early Life and Freedom Struggle:
    • Karpoori Thakur, born in the village of Pitaunjhia (now Karpoori Gram) in Bihar’s Samastipur district, actively participated in the freedom struggle and faced imprisonment for his contributions.
    • His political journey began with his election as an MLA in 1952, marking the start of a dedicated career in public service.
  • Political Career:
    • Thakur remained an MLA from 1952 until his death in 1988, with a brief interruption when he served as an MP in 1977.
    • In 1952, he became an MLA and later served as Bihar’s Education Minister from March 5, 1967, to January 28, 1968.
    • Karpoori Thakur assumed the role of Bihar’s Chief Minister in December 1970, representing the Samyukta Socialist Party.
    • However, his government fell after six months.
    • He returned to the post in June 1977 but could not complete a full term, losing power in about two years.
    • His tenure was marked by a controversial reservation policy that played a role in his political challenges.
  • Personal Integrity and Anecdote:
    • Karpoori Thakur was known for his personal integrity.
    • An anecdote highlighting his modesty recounts how, when selected for an official delegation to Austria in 1952, he had to borrow a torn coat from a friend.
    • Yugoslav President Josip Tito noticed the torn coat and gifted Thakur a new one.
    • Despite three decades in public life, Thakur’s home at the time of his death in 1988 was described as little more than a hut, emphasizing his commitment to public service over personal gain.
  • Key Policy Decisions:
    • Karpoori Thakur, known as ‘Jannayak’ and former Chief Minister of Bihar, made several noteworthy policy decisions during his tenure.
    • These included removing English as a compulsory subject for matriculation exams, implementing alcohol prohibition, providing preferential treatment for unemployed engineers in government contracts, and introducing a layered reservation system.
  • The ‘Karpoori Thakur Formula’:
    • The Mungeri Lal Commission, appointed by the Bihar government in June 1970, identified 128 “backward” communities, with 94 considered “most backward” in its February 1976 report.
    • Thakur’s Janata Party government implemented the commission’s recommendations, introducing the ‘Karpoori Thakur Formula.’
    • This groundbreaking move allocated 26% reservation, with 12% for OBCs, 8% for economically backward classes within OBCs, 3% for women, and 3% for the economically disadvantaged among the “upper castes.”
    • The implementation predates the central government’s introduction of the EWS quota, gaining significance amid later demands for caste-based census and layered reservation.
    • While the reservation policy had a lasting impact, Thakur faced significant opposition and political fallout in the short term.
  • Karpoori Thakur’s legacy endures through these impactful policy decisions that aimed at social justice and upliftment of marginalized sections in Bihar.

About Bharat Ratna Award

  • The Bharat Ratna is the highest civilian award in the Republic of India.
  • Instituted on January 2, 1954, the award is conferred in recognition of exceptional service in any field of human endeavor.
  • It is presented by the President of India.
  • The term “Bharat Ratna” translates to “Jewel of India” in English.
  • Criteria for Bharat Ratna:
    • The Bharat Ratna is awarded for exceptional service towards the advancement of art, literature, science, and public service.
    • The recipients can be citizens of India or foreign nationals.
  • The award is considered a recognition of the highest order, and its recipients are often individuals who have made extraordinary contributions to society, bringing distinction to the nation.
  • Bharat Ratna Emblem:
    • The Bharat Ratna is represented by a peepal leaf, with the words “Bharat Ratna” inscribed in Devanagari script.
    • The emblem is made of toned bronze.
  • First Recipients of Bharat Ratna:
    • Rajagopalachari (1954):
      • An independence activist, lawyer, and politician.
      • The only Indian to have served as both the Governor-General of India and the President of India.
      • A key figure in the Indian National Congress and played a crucial role in the Indian independence movement.
    • SarvepalliRadhakrishnan (1954):
      • Philosopher, scholar, and statesman.
      • The first Vice President of India and the second President of India.
      • Renowned for his contributions to Indian philosophy and education.
    • C.V. Raman (1954):
      • Physicist who won the Nobel Prize in Physics in 1930 for his work on the scattering of light and the discovery of the Raman effect.
      • Director of the Indian Institute of Science, Bangalore.
      • One of the most distinguished scientists in the history of India.

An overview of the fourth national elections of Bhutan

(General Studies- Paper II)

Source : TH

On January 10, the Election Commission of Bhutan (ECB) announced the results of the fourth national assembly elections, declaring the People’s Democratic Party (PDP) as the ruling party with 30 out of 47 seats.

  • The Bhutan Tendrel Party (BTP) secured 17 seats, becoming the opposition party.

Key Highlights

  • Bhutan’s Electoral System:
    • Bhutan transitioned from an absolute monarchy to a constitutional monarchy with a parliamentary government in 2008.
    • The King of Bhutan serves as the head of state, while the Prime Minister is the head of the government.
    • The electoral system involves a two-tier structure, consisting of the National Council (upper house) and the National Assembly (lower house).
    • Elections to the National Assembly follow a two-stage process: a primary round and general elections.
    • In the primary round, all registered parties participate, and the top two voted parties proceed to the general elections.
    • The general elections determine the ruling party and the opposition party.
  • Overview of Recent Primary Elections:
    • In the primary round, all five registered parties contested.
    • The People’s Democratic Party (PDP) and Bhutan Tendrel Party (BTP) secured the highest votes, with 42.53% and 19.58%, respectively.
  • Context and Political Landscape:
    • Bhutan has conducted four elections since 2008, marking its transition to a parliamentary democracy.
    • The recent election results reflect the democratic process in Bhutan and the emergence of the ruling and opposition parties through the electoral system.
  • Party Campaigns:
    • The People’s Democratic Party (PDP), a liberal party, secured a decisive victory with a focus on economic recovery, infrastructure development, and boosting the private sector.
    • Emphasizing action-oriented goals contributed significantly to their electoral success.
    • The Bhutan Tendrel Party (BTP), a newcomer, emerged as the opposition party in its debut term.
    • Their campaigns centered around building a vibrant and prosperous Bhutan through a robust private sector, effective governance, and the establishment of the Bhutan Idea and Innovation Bank.
  • Key Issues in the Election:
    • Economic recovery and development were central themes in the election campaigns.
    • Bhutan faced economic challenges, with an average growth rate of 1.6% in the past five years.
    • Youth unemployment stood at 28.6%, and the private sector stagnated post-pandemic.
    • The tourism sector witnessed a decline.
    • Bhutan’s total debt was 124.5% of its GDP, and foreign reserves were declining, posing concerns about essential imports.
    • Demographic Challenges:
      • Mass migration led to a shortage of manpower, impacting public service delivery.
      • Exodus of high-skilled individuals for better educational and job opportunities in other countries.
      • Declining fertility rates were also noted.
    • Gross National Happiness (GNH) and Voter Turnout:
      • While GNH remained a central theme, economic issues took precedence in the fourth round of elections.
      • Voter turnout saw a decline, with 63% in the primary round and 65.6% in the general elections in 2023-24, compared to 66.36% and 71.46% in 2018.
    • Election Context and Outlook:
      • Economic concerns, demographic challenges, and declining voter turnout underscored the complex landscape of Bhutan’s recent elections.
      • The new government, led by PDP, faces the task of addressing these issues and fulfilling campaign promises amid a changing socio-economic landscape.
    • Bhutan’s Future Outlook:
      • The recent fourth-round elections in Bhutan showcased a seamless transition to democracy, even with a caretaker government in place.
      • Despite challenges, the electoral process demonstrated the country’s commitment to democratic principles.
      • The People’s Democratic Party (PDP), one of the oldest political parties, emerged victorious, securing trust for the second time in stabilizing the economy.
      • In 2013, PDP took charge of a struggling economy marked by inflation, credit freezes, import bans, and minimal business activity.
      • PDP successfully increased GDP and foreign reserves during its previous term.
    • Challenges and Opportunities:
      • Bhutan faces economic challenges, including high debt levels, declining foreign reserves, and stagnant private sector growth.
      • The caretaker government and the incoming PDP-led administration will need to address these challenges and work towards a more prosperous Bhutan.
      • PDP’s President TsheringTobgay is poised to become the Prime Minister of Bhutan for the second time.
      • The party’s slogan, “For a Better Druk Yul [For a better Bhutan],” reflects its commitment to the nation’s well-being and development.
      • PDP’s return to power signals a focus on stabilizing the economy and building on past successes in GDP growth and foreign reserve management.

About Bhutan

  • Bhutan, officially known as the Kingdom of Bhutan, is a landlocked country situated in South Asia.
  • It is located in the eastern Himalayas, bordered by China to the north and India to the south, east, and west.
  • The terrain is mountainous, with deep valleys and rivers.
  • Political System:
    • Bhutan is a constitutional monarchy with a parliamentary democracy.
    • The King of Bhutan is the head of state, while the Prime Minister is the head of government.
    • The political transition from an absolute monarchy to a constitutional monarchy occurred in 2008.
  • Capital and Largest City:
    • Thimphu is the capital and largest city of Bhutan.
  • Population:
    • Bhutan’s population was around 750,000 people as of January 2022.
  • The official language of Bhutan is Dzongkha.
  • The majority of the population practices Buddhism, and the state religion is Vajrayana Buddhism.
  • Economy:
    • Bhutan’s economy is predominantly agrarian, with agriculture employing a significant portion of the population.
    • The country has been transitioning toward a more diversified and sustainable economy.
    • Hydroelectric power is a key sector contributing to Bhutan’s revenue.
    • Bhutan has a policy of “High Value, Low Impact” tourism, allowing a limited number of tourists to maintain cultural and environmental sustainability.

About India-Bhutan Relations

  • India and Bhutan share a unique and exemplary bilateral relationship founded on mutual trust, goodwill, and understanding.
  • Formal diplomatic ties were established in 1968, and the foundational Treaty of Friendship and Cooperation, signed in 1949, shapes the basic framework of these relations, having been renewed in February 2007.
  • Trade and Economic Ties:
    • The India-Bhutan Agreement on Trade, Commerce, and Transit, initially signed in 1972 and most recently revised in 2016, establishes a free trade regime.
    • This agreement facilitates duty-free transit of Bhutanese exports to third countries.
    • India is Bhutan’s top trade partner, accounting for about 80% of Bhutan’s overall trade.
    • Since 2014, India’s merchandise trade with Bhutan has nearly tripled, reaching USD 1422 million in 2021-22.
    • In 2021-22, India’s exports to Bhutan amounted to USD 877 million, while imports from Bhutan were USD 545 million.
  • Key Exports and Imports:
    • India’s top exports to Bhutan include petrol & diesel, passenger cars, rice, wood charcoal, cellphones, Coke and semi-coke, soya-bean oil, excavators, electric generators & motors, parts for turbines, transport vehicles, bitumen.
    • Major imports from Bhutan to India include electricity, Ferro-silicon, Ferro-silico-manganese, Portland pozzolana cement, Dolomite chips, Ordinary Portland cement, Silicon Carbide, cardamoms, betel nut, oranges, semi-finished products of iron or non-alloy steel, boulders, etc.
    • India stands as the leading source of investments in Bhutan, contributing 50% of the country’s total Foreign Direct Investment (FDI).

Centre releases three-drug regimen for treating leprosy

(General Studies- Paper III)

Source : TH

The Union government of India has granted approval for a new treatment regimen for leprosy with the objective of halting its transmission at the subnational level by 2027.

  • The decision aims to enhance the effectiveness of the National Leprosy Eradication Programme.

Key Highlights

  • Details of the New Regimen:
    • The Directorate General of Health Services (DGHS) issued a letter outlining the approval of a three-drug regimen for PauciBacillary (PB) cases, replacing the existing two-drug regimen for a duration of six months.
    • The decision aligns with the latest globally accepted scientific research studies and evidence-based practices.
    • The World Health Organization (WHO) has agreed to supply the revised drug regimen starting from April 1, 2025.
    • The decision is grounded in the latest scientific research studies and follows globally accepted evidence-based practices.
    • The move underscores the commitment to leveraging the most current knowledge and aligning with international health standards.
  • Implementation and Requisition Process:
    • States and Union Territories are urged to submit their requisitions for antileprosy drugs 12 months in advance, anticipating the implementation of the new regimen.
    • The revised classification of leprosy and the treatment regimen for both PauciBacillary (PB) and multibacillary (MB) cases in India will be enforced from April 1, 2025.
    • The regimen distinguishes between PauciBacillary (PB) and multibacillary (MB) cases based on the visibility of bacteria and signs of advanced disease in biopsies.
    • The new regimen is aligned with the WHO’s recommended treatment, comprising three drugs: dapsone, rifampicin, and clofazimine, collectively known as MDT.
    • The duration of treatment is six months for PB cases and 12 months for MB cases.
  • Overview of Leprosy and Transmission:
    • Leprosy, a chronic infectious disease caused by Mycobacterium leprae, is transmitted through droplets from the nose and mouth during close contact with untreated cases.
    • The World Health Organization (WHO) notes that leprosy is curable with multidrug therapy (MDT) and is reported in all six WHO regions, with a concentration of new cases in Southeast Asia.
  • Goal: Eradication by 2027:
    • The letter from DGHS emphasizes the significance of the new treatment regimen in advancing collective efforts to eradicate leprosy in India by 2027.
    • The move is in line with global efforts to combat leprosy and underscores India’s commitment to leveraging the latest scientific research and WHO-endorsed practices.
  • Multidrug Therapy (MDT):
    • MDT, the recommended treatment, is designed to kill the pathogen and cure the infection.
    • It consists of a combination of dapsone, rifampicin, and clofazimine.
    • The proactive adoption of MDT reflects a significant step forward in the campaign to eliminate leprosy, particularly in India where a majority of new cases are detected.
    • The World Health Organization (WHO) has been instrumental in the provision of free Multidrug Therapy (MDT) for leprosy patients.
    • Initially funded by the Nippon Foundation, free MDT has been available since 2000 through an agreement with Novartis.
    • The donated MDT is referred to as ‘Uniform MDT,’ a single three-pack kit that can be administered to all leprosy patients.
    • This streamlined approach facilitates ease of administration, benefiting both healthcare providers and manufacturers.
  • Transition to Three-Drug Regimen:
    • Despite the efficacy of the two-drug regimen, the WHO has approved a shift to a three-drug regimen for leprosy treatment.
    • The third drug in the regimen, clofazimine, while effective, can cause side effects, including a notable red coloration of the skin.
    • Experts acknowledge that while the two-drug regimen is adequate, the addition of a third drug may provide benefits in specific cases.

About Leprosy

  • Leprosy, an ancient and chronic infectious disease caused by Mycobacterium leprae, has been documented in the literature of ancient civilizations.
  • It affects the skin, peripheral nerves, mucosa of the upper respiratory tract, and eyes.
  • While curable, leprosy poses challenges beyond physical deformities, including stigmatization and discrimination.
  • Scope of the Problem:
    • Leprosy is a neglected tropical disease (NTD) prevalent in over 120 countries, with over 200,000 new cases reported annually.
    • Global elimination as a public health problem (prevalence less than 1 per 10,000) was achieved in 2000, and in most countries by 2010.
    • Brazil, India, and Indonesia reported over 10,000 new cases in 2019, with 13 other countries reporting 1,000–10,000 new cases each.
  • Transmission and Prevention:
    • Leprosy transmission is not facilitated through casual contact such as shaking hands, hugging, sharing meals, or sitting together.
    • Droplet transmission occurs over months of close contact with untreated leprosy patients.
    • The patient ceases to transmit the disease upon initiating treatment.
    • Symptoms include light-coloured or red skin patches with reduced sensation, numbness and weakness in hands and feet.
    • Leprosy can be cured with 6-12 months of multi-drug therapy. Early treatment avoids disability.
  • Global Efforts and Challenges:
    • The reduction in new cases has been gradual globally and within WHO regions.
    • Stigmatization and discrimination persist, affecting individuals beyond the physical impact of the disease.
    • Brazil, India, and Indonesia remain key contributors to new cases.
    • Forty-five countries reported zero cases, while 99 reported fewer than 1,000 new cases.

Indian Stock Market Overtakes Hong Kong

(General Studies- Paper III)

Source : The Indian Express

The Indian stock market has surpassed Hong Kong, securing the position as the fourth-largest equity market globally.

  • This milestone was achieved even as domestic indices in India experienced a 1.5% decline.
  • The combined value of listed shares on Indian exchanges reached $4.33 trillion, exceeding Hong Kong’s $4.29 trillion.

Key Highlights

  • Factors Behind the Shift:
    • Hong Kong’s decline is attributed to diminishing appeal linked to China’s economic challenges.
    • The erosion of China’s economic performance has contributed to a nearly 36% drop in Hong Kong’s market from its peak level.
    • Analysts highlight a global economic trend where China is underperforming, while India is outperforming.
    • The underperformance of Chinese stocks listed in Hong Kong has led to a significant impact on the Hang Seng index.
  • Performance and Prospects:
    • Despite global economic shifts, Indian stock markets experienced a 20% rally in 2023.
    • This resilience is credited to higher foreign inflows and positive growth prospects in India.
    • Analysts view this milestone as a testament to India’s economic fortitude and its emergence as a key player in the international financial arena.
    • The achievement reflects India’s promising trajectory and attracts investor confidence.

About Stock Market

  • A stock market, also known as an equity market, is a platform where buyers and sellers trade shares of publicly listed companies.
  • It provides a venue for companies to raise capital by issuing shares and for investors to buy and sell these shares.
  • The stock market plays a crucial role in the economy by facilitating capital formation, enabling investors to share in the success of companies, and serving as an indicator of economic health.
  • Components of a Stock Market:
    • Listed Companies: Publicly traded companies list their shares on stock exchanges to raise capital from the public.
    • Investors: Individuals and institutional investors, such as mutual funds and pension funds, buy and sell shares in the stock market.
    • Stock Exchanges: These are organized platforms where the buying and selling of stocks take place.
    • Examples include the New York Stock Exchange (NYSE), Nasdaq, London Stock Exchange (LSE), and Bombay Stock Exchange (BSE).
    • Brokers: Intermediaries that facilitate stock trades between buyers and sellers.
    • Regulatory Bodies: Government bodies regulate stock markets to ensure fair and transparent trading practices.
  • Indian Stock Market: Origin and Journey:
    • Origin:
      • The Bombay Stock Exchange (BSE) is considered the oldest stock exchange in Asia, established in 1875.
      • It began as the Native Share & Stock Brokers’ Association, transformed into the BSE in 1957.
      • The National Stock Exchange (NSE) was founded in 1992 and has become a prominent stock exchange in India.
    • Evolution:
      • The BSE started as an informal group of stockbrokers under a banyan tree.
      • The NSE introduced electronic trading, transforming the stock market landscape.
      • Economic reforms in the 1990s opened up the Indian economy.
      • The stock market witnessed increased activity, foreign investment, and the entry of new financial instruments.
      • The adoption of technology, online trading platforms, and dematerialization of shares modernized the stock market.
    • Key Indices:
      • Sensex: Introduced by the BSE, it represents the performance of the 30 largest and most actively traded stocks.
      • Nifty: Created by the NSE, it comprises 50 stocks representing various sectors.
    • Regulatory Framework:
      • Securities and Exchange Board of India (SEBI) regulates the securities market, ensuring investor protection and market integrity.
    • Market Participants:
      • Retail Investors: Individuals investing in stocks.
      • Institutional Investors: Mutual funds, insurance companies, and foreign institutional investors (FIIs).
      • Corporates: Companies issuing shares to raise capital.
    • Market Impact:
      • Economic Indicator: The stock market reflects economic conditions and investor sentiment.
      • Capital Formation: Companies raise funds for expansion through initial public offerings (IPOs).
      • Wealth Creation: Investors benefit from capital appreciation and dividends.