Case Fatality Rate

What in news:
India’s CFR of Maharashtra stood at 3.7 % higher than the national average of 2.8 %.

Important Definitions:
Case Fatality rate or Case Fatality ratio:
is the proportion of deaths from a certain disease compared to the total number of people diagnosed with the disease for a certain period of time.

Mortality rate:
is a measure of the number of deaths in a population scaled to the size of that population per unit of time.

Infection fatality rate (IFR) :
applies to infectious disease outbreaks, and represents the proportion of deaths among all the infected individuals.
The IFR differs from the CFR in that it aims to estimate the fatality rate in all those with infection: the detected disease (cases) and those with an undetected disease (asymptomatic and not tested group)

PM Cares Fund and NDRF

About PM Cares Fund:

Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was created on 28 March 2020, following the COVID-19 pandemic in India.
Chairman – The Prime Minister of India
Members – Minister of Defence, Minister of Home Affairs and Minister of Finance in the Government of India.
The minimum donation accepted for the PM CARES Fund is ₹10.
The fund will be used for combating, and containment and relief efforts against the coronavirus outbreak and similar pandemic like situations in the future.
The donations will be tax exempt and fall under corporate social responsibility (CSR)

Oppositions faced:
The PM CARES fund is different from the Prime Minister’s National Relief Fund (PMNRF) so many queries raised why a different fund is needed.
Chief Ministers of various States questioned the preference given to this fund because donations to the state governments’ initiatives such as the Chief Minister’s Funds do not qualify for the CSR obligation.
The legality of the constitution of the PM CARES Fund is questioned by a PIL as under which act it was registered. But SC dismissed the PIL.
It did not contain any members of civil society or opposition as part of the trust.
Officials working with the Comptroller and Auditor General of India stated that they were not allowed to audit the fund, since it was “based on donations of individuals and organisations
The PMO stated that the Fund was “not a public authority” the RTI Act.

Statements For PM CARES Fund:
Government officials clarified the PM CARES Fund was specifically dedicated to pandemic situations like that caused by COVID-19. The PMNRF, on the other hand, was meant for all types of natural disasters.
The officials further stated that to spend from the Consolidated Fund of India, the Parliament’s approval was required while a donation-based fund did not have any such legislative concerns.
Other people believed that the setting up of a separate fund for a pan-India problem like this encouraged more people to contribute.
The government stated that “independent auditors who will be appointed by the trustees” would audit the fund like PMNRF.

Use of Fund:
Of a total of ₹3,100 crore, approximately ₹2,000 crore was allocated for the purchase of 50,000 ventilators, ₹1,000 crore for the support of migrant workers and ₹100 crore was to support the funding of a vaccine for COVID-19

About Prime Minister’s National Relief Fund (PMNRF):
PMNRF in India is the fund raised to provide support for people affected by natural and man made disasters. Natural disasters covered under this include flood, cyclone, earthquake etc. Man made disasters include major accidents, acid attacks, riots etc.
Jawaharlal Nehru created this fund in 1948 to support displaced people from Pakistan.
Chairman of the fund is the Prime Minister and he is assisted by joint secretary.
The fund is fully collected from the public and has no budgetary allocation from the government and tax exempt.
The whole of the fund is deposited with scheduled commercial banks and the beneficiaries are identified directly by the Prime Minister from among the beneficiaries.
The fund is also allotted to the people for treatment like cancer, kidney transplantation, heart surgery etc.

Ring of Fire Solar Eclipse

This solar eclipse occurs on a new Moon day, when a new moon comes in between the Earth and the Sun and when all the three objects are aligned.
Moon is near its farthest point from Earth (called its apogee), forming a straight line with the Earth and the sun – an event occurs once a year.
When the moon at its apogee it partially covers the sun. Since the sun’s outer rim remains visible, the sunshine appearing around the moon creates a stunning ring of fire effect.
On June 21, the annular path passes through Congo, Sudan, Ethiopia, Yemen, Saudi Arabia, Oman, Pakistan, northern parts of India and China.
Africa, south and East Europe and North Australia, the partial eclipse will be visible.

Garib Kalyan Rojgar Abhiyan

A massive rural public works scheme is going to be launched by the Government of India on 20th June 2020.
Aims to empower and provide livelihood opportunities to the returnee migrant workers and rural citizens.
This will involve intensified and focused implementation of 25 different types of works to provide employment to the migrant workers on one hand and create infrastructure in the rural regions of the country on the other hand, with a resource envelope of Rs. 50,000 crore.
The campaign runs for 125 days and covers villages across 116 districts in the six States will join this programme through the Common Service Centres and Krishi Vigyan Kendras.
Six states are Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan, Jharkhand and Odisha
12 different Ministries/Departments involved are Rural Development, Panchayati Raj, Road Transport & Highways, Mines, Drinking Water & Sanitation, Environment, Railways, Petroleum & Natural Gas, New & Renewable Energy, Border Roads, Telecom and Agriculture.

SEBI eases fund raising norms for firms:

The Securities and Exchange Board of India (SEBI) has allowed listed companies to raise funds at shorter intervals while also giving promoters the go-ahead to increase their stakes by a higher quantum without triggering an open offer.
These measures along with the relaxation on rights issues, permitted earlier, are aimed at increasing liquidity for Indian companies.

Permanent relaxation by SEBI:
The capital markets regulator has allowed companies to make two qualified institutional placements (QIPs) with a gap of just two weeks between them. The earlier regulations mandated a minimum gap of six months between two such issuances.

Earlier relaxation for Rights issue:
SEBI streamlined the timelines for completion was reduced from T+55 days to T+31 days — a 40 per cent cut in the time.
It has also reduced the advance notice for the record date from seven working days to three working days.
It is possible now for eligible investors to subscribe and trade their rights entitlement (RE) and also makes it possible for interested investors to subscribe to more shares than they are eligible for.

Temporary relaxation by SEBI:
The promoters can increase their stakes in their companies through preferential allotments by up to 10% without triggering an open offer. The cap was earlier set at 5%. The regulator has, however, allowed this relaxation only for the current financial year.

Earlier Relaxation for rights issue:
It reduced the eligibility requirement of average market capitalisation of public shareholding from Rs 250 crore to Rs 100 crore for a fast track rights issuance.
The regulator also reduced the minimum subscription requirement from 90 per cent to 75 per cent of the issue size.
Listed entities raising funds upto Rs.25 crores (erstwhile limit was Rs 10 crores) through a rights issue are now not required to file draft offer document with SEBI.
Any company that had been listed for 18 months was permitted to raise funds through a fast- track rights issue. The eligibility had earlier been set at three years.

What is rights issue?
A rights issue is a mechanism by which companies can raise additional capital from existing shareholders.
For a rights issue, there is no requirement of shareholders’ meeting and an approval from the board of directors is sufficient and adequate.

Housing Finance Company

Why in news:
The Reserve Bank of India (RBI) has proposed stringent norms for housing finance companies(HFC) by mandating 75% of their home loans to individual borrowers by 2024.

Regulation of HFC:

HFC is considered as a Non-banking Financial Company (NBFC) if its
financial assets are more than 50% of its total assets
income from financial assets is more than 50% of the gross income.

HFCs which do not fulfil the criteria will be treated as NBFC – Investment and Credit Companies (NBFC-ICCs)
will be required to approach the RBI for conversion of their Certificate of Registration from HFC to NBFC-ICC

HFC as NBFC should have at least 50% of net assets should be in the nature of ‘qualifying assets’ for HFCs, of which at least 75% should be towards individual housing loans.
NBFC-ICCs which want to continue as HFCs would have to follow a roadmap to make 75% of their assets individual housing loans.

RBI Definition of ‘qualifying assets’:
Assets as loans to
individuals or a group of individuals,
including co-operative societies,
for construction/purchase of new dwelling units,
loans to individuals for renovation of existing dwelling units,
lending to builders for construction of residential dwelling units.

Non-housing loans:
All other loans, including those given for furnishing dwelling units, loans given against mortgage of property for any purpose other than buying/construction of a new dwelling unit/s or renovation of the existing dwelling unit/s.