News in Shorts: 28 June 2024

Inclusion of Indian Government Bonds (IGBs) 

• Indian Government Bonds (IGBs) will begin being included in JP Morgan’s emerging markets bond indices on June 28. 

 India’s Weight tn the Index:

• Weight: India is expected to reach the maximum weight of 10 per cent in the GBI-EM Global Diversified Index (GBI-EM GD). 
• Effect: A higher weightage will prompt global investors to invest more funds in Indian debt.
• Eligibility: Only IGBs designated under the Fully Accessible Route (FAR) are index-eligible. 
  • In March 2020, the RBI, in consultation with the government, introduced a separate channel, called the FAR, to enable non-residents to invest in specified securities dated by the Government of India.
• Criteria: To be eligible for the index inclusion criteria, instruments must have notional outstanding above $1 billion (equivalent) and at least 2.5 years remaining maturity.

Central Electronics Limited (CEL)

• Central Electronics Limited (CEL) has recently been awarded “Mini RATNA” status (Category-1).

Mini Ratna (category 1):

• Eligibility: To be eligible for Mini Ratna (Category-1) status, a company must have made a profit for the last three consecutive years, achieved a pre-tax profit of Rs. 30 crores or more in at least one of those three years, and have a positive net worth.

CEL

• About: It operates under the Department of Scientific and Industrial Research (DSIR) of the Ministry of Science & Technology. 
• Objective: Established in 1974, its objective is to exploit indigenous technologies commercially. 
  • It is a pioneer in the country’s solar photovoltaic (SPV) field.

Informed consent in medical operations

• About:  It means that a patient needs to be given all the information regarding their condition, including treatment options, the steps of a procedure if one is suggested along with possible complications. 
• Significance: This information allows the patient to make a balanced, well-informed decision on available options, including whether they would like to undergo the procedure (or consent to a treatment option or procedure, so to speak).

Employee stock option plan (ESOP)

• No GST on ESOP by MNCs to employees of Indian subsidiary

Employee Stock Option Plan:

• About: The Employee Stock Option Plan, also known as the Employee Stock Ownership Plan in India, is a benefit program that grants employees the right to purchase company shares at a predetermined price.
• Purpose: Companies use ESOPs to attract, retain, and reward employees. They help align employees’ interests with the company’s growth and success.
• Granting of Options: Under an ESOP, eligible employees are given the right, but not the obligation, to purchase company shares at a predetermined price, referred to as the “exercise price” or “strike price.” This price is usually set below the current market value of the company’s shares.
  • Employees must wait for a specified period, known as the vesting period, before exercising their right to purchase the allotted shares.