Current Affairs for 19 December 2025

Securities Markets Code (SMC) Bill 2025: Unified Securities Law in the Making

Why in News ?

The Union Finance Minister has tabled the Securities Markets Code (SMC) Bill, 2025 in the Lok Sabha. The Bill, first proposed in the Union Budget 2021–22, has been referred to the Standing Committee on Finance for detailed scrutiny. The Bill seeks to consolidate, rationalise and modernise India’s securities market laws, aligning regulation with a technology-driven, rapidly evolving financial ecosystem.

Background and Context

India’s securities market has expanded rapidly in recent decades, driven by digital trading platforms, algorithmic trading, retail investor participation, and fintech innovations. However, the legal framework governing these markets evolved in a piecemeal manner, spread across multiple legislations enacted at different points in time.

This fragmentation led to:

• Overlapping provisions and regulatory duplication
• Compliance complexity for market participants
• Gaps in enforcement and investor protection

Recognising these challenges, the government proposed a principle-based, unified securities law, culminating in the Securities Markets Code Bill, 2025.

Securities Market in India

• A critical component of India’s financial system, channelising savings into productive investments
• Enables capital formation, risk-sharing, and economic growth
• Largely technology-driven, with electronic trading, dematerialised securities, and real-time settlement
• Regulated primarily by the Securities and Exchange Board of India (SEBI)

Core Features of the Securities Markets Code Bill, 2025

1. Consolidation of Securities Laws

The Bill replaces three major legislations:

• SEBI Act, 1992 – Established SEBI as the statutory regulator with enforcement powers
• Securities Contracts (Regulation) Act, 1956 – Regulated stock exchanges and securities contracts
• Depositories Act, 1996 – Enabled dematerialisation and electronic transfer of securities
• Objective: Create a single, coherent securities law by removing obsolete provisions, overlaps, and inconsistencies.

2. Expanded and Strengthened SEBI Board

• Board strength increased from 9 to 15 members
• Composition includes:
  • Chairperson
  • 2 Central Government nominees
  • 1 RBI nominee (ex-officio)
  • 11 other members (minimum 5 whole-time members, up from 3)
• Purpose: Enhance institutional capacity, regulatory expertise, and governance effectiveness.

3. Decriminalisation and Rationalisation of Offences

• Minor, technical and procedural violations shifted to civil penalties
• Criminal sanctions limited to serious offences such as:
  • Insider trading
  • Trading on material non-public information
• This aligns with the government’s broader ease of doing business and decriminalisation agenda.

4. Classification of Contraventions

• Category I: Fraudulent and unfair trade practices – civil penalties only
• Category II: Market abuse impacting market integrity and public interest – civil and/or criminal liability
• This risk-based classification ensures proportional regulation.

5. Time Limitation on Inspection

• No inspection allowed if 8 years have elapsed since the date of contravention
• Ensures legal certainty and closure for market participants.

6. Conflict of Interest and Accountability

• Mandatory disclosure of direct and indirect interests, including family interests
• Compulsory recusal in cases of conflict
• SEBI empowered to remove board members for non-compliance
• These provisions strengthen ethical governance and transparency.

7. Investor Protection Measures

• Mandatory Investor Charter to be issued by SEBI
• Institutionalised investor grievance redressal mechanism
• Market intermediaries and issuers directed to adopt similar systems
• Aims to boost investor confidence and retail participation.

8. Delegation and Regulatory Coordination

• SEBI may delegate registration-related functions to:
  • Market Infrastructure Institutions (MIIs)
  • Self-Regulatory Organisations (SROs)
• Framework for inter-regulatory coordination, especially for new and “other regulated instruments”
• Supports market deepening, innovation, and fintech integration.

Key Challenges and Way Forward

Concerns Raised:

• Potential over-concentration of powers in SEBI
• Possible dilution of separation of powers
• Ambiguity in subordinate legislation (rules, regulations, circulars)

Way Forward:

• Strong parliamentary scrutiny by the Standing Committee
• Clear checks and balances on SEBI’s discretionary powers
• Transparent and consultative rule-making
• Capacity building for effective enforcement
• Periodic review of delegated functions to MIIs and SROs

India–Jordan Ties Get Strategic Push

Why in News ?

The Prime Minister of India paid his first full-fledged bilateral visit to Jordan in 2025, holding wide-ranging talks with King Abdullah II. The visit coincided with the 75th anniversary of India–Jordan diplomatic relations, signalling an intent to upgrade traditionally warm ties into a future-oriented strategic partnership.

Background and Context

India and Jordan have shared cordial relations since 1950, marked by political trust, limited but stable trade, and cooperation in multilateral forums. However, the relationship remained relatively under-leveraged compared to India’s deeper engagements with Gulf states.

Amid a volatile West Asia, weakening multilateralism, and India’s growing strategic footprint in the region, Jordan’s role as a moderate, stabilising Arab monarchy has gained renewed importance. The 2025 visit sought to recalibrate ties beyond symbolism towards trade, digital cooperation, defence, and regional connectivity.

Key Outcomes of the Visit

MoUs and Institutional Agreements

Five major agreements were concluded:

• Technical Cooperation in New & Renewable Energy
• Cooperation in Water Resources Management & Development
• Twinning Agreement between Petra and Ellora
• Renewal of Cultural Exchange Programme (2025–2029)
• Letter of Intent on sharing population-scale digital solutions for digital transformation

Trade and Economic Ambitions

• Target to raise bilateral trade to USD 5 billion in five years
• India is already Jordan’s 3rd largest trading partner

Political and Security Convergence

• Joint condemnation of terrorism
• Shared commitment to regional peace, stability, and moderation

Strategic Significance of Jordan for India’s West Asia Policy

Geopolitical Bridge

• Jordan is a pro-West, constitutional monarchy with a peace treaty with Israel
• Enables India to balance ties with Israel, Arab states, and Iran without sectarian entanglement

Counter-Terrorism Cooperation

• Collaboration through the Aqaba Process (2015)
• Defence MoU (2018) and participation in SOFEX
• Strong military-to-military and special forces engagement

Multilateral and Diplomatic Support

• Jordan’s influence within the Organisation of Islamic Cooperation (OIC) often helps moderate anti-India narratives
• Balanced stance on Kashmir-related issues

Regional Stability and Connectivity

• Custodianship of holy sites in Jerusalem gives Jordan leverage in de-escalation
• Strategic role in the India–Middle East–Europe Economic Corridor (IMEC)
• Emergence as an overland logistics hub during Red Sea disruptions

Jordan: Key Facts

• Location: West Asia; borders Syria, Iraq, Saudi Arabia, Israel, and the West Bank
• Geography: Predominantly desert; fertile Jordan River Valley
• Population: Largely Arab, with a large Palestinian refugee population
• Capital: Amman
• Maritime Access: Port of Aqaba (Red Sea)
• Political History:
  • British Mandate (Transjordan) → Independence in 1946
  • Peace Treaty with Israel (Wadi Araba, 1994)

Pillars of India–Jordan Relations

Diplomatic Engagement

• Relations established in 1950
• Regular high-level interactions at UNGA and bilateral platforms

Trade and Economic Cooperation

• Bilateral trade: USD 2.875 billion (FY 2023–24)
• Jordan India Fertiliser Company (JIFCO) ensures India’s access to phosphates and potash
• Over 15 Indian-owned garment units in Jordan (≈ USD 500 million investment)

Defence and Security

• Defence Cooperation MoU (2018)
• Growing focus on counter-terrorism and special operations

Science, Technology and Digital Cooperation

• India–Jordan IT Centre of Excellence at Al-Hussein Technical University
• Supercomputer PARAM Shavak supports training in AI, cybersecurity, and big data

People-to-People Ties

• ~17,500 Indians in Jordan (healthcare, IT, education)
• Strong cultural resonance through Bollywood and festivals

Challenges in the Partnership

• Narrow Trade Basket: Dominated by fertilisers, cereals, and petroleum products
• Economic Constraints in Jordan: High unemployment and public debt limit expansion
• Geopolitical Sensitivities: Israel–Palestine tensions constrain policy flexibility
• Connectivity Gaps: Limited direct flights restrict tourism and business flows

Way Forward

• Diversify Trade: Focus on MSMEs, startups, value chains, and services
• Digital Partnership: Share India’s DPI and UPI experience
• Green & Water Cooperation: Solar energy, green hydrogen, desalination, irrigation
• Regional Gateway Role: Use Jordan as a hub for humanitarian aid and reconstruction
• Improve Connectivity: More direct flights and digital collaboration platforms

Annatto

Context

Recently, according to information provided by the Council of Scientific and Industrial Research (CSIR), the CSIR-Central Food Technological Research Institute (CSIR-CFTRI), Mysuru, initiated four grant-funded projects related to the study and development of Annatto. The objective of these projects is to further the scientific understanding of natural food colors and their associated health benefits.

What is Annatto ?

• Annatto is a natural food coloring and flavoring substance obtained from the seeds of the Achiote tree, native to the tropical regions of the Americas.
• Its scientific name is 'Bixa Orellana'. It is also known as the 'Lipstick Tree'. Annatto is considered to account for approximately 70% of natural food colorings used worldwide.

Uses in the Food Industry

• Annatto is used to impart a yellow to orange color to many food products. These include:
  • Cheese, butter, and yogurt
  • Sausages and smoked fish
  • Ice cream and various bakery products
• Its attractive color is due to carotenoids, which are natural pigments found in plants and are present in the outer covering of the seed.
• Annatto is commonly used in powder or paste form. Color extracted from the seeds is also added to foods.
• It is also used as a flavoring in some dishes. Excessive use in recipes can result in a slightly pungent taste with a nutty and floral aroma.
• Annatto is considered safe for most people when consumed in moderate amounts. However, some sensitive individuals may experience allergic reactions, so caution is advised.

Health Benefits of Annatto

• Annatto has been linked to several potential health benefits, including:
  • Helping reduce inflammation
  • Improving eye and heart health
  • Having potential anti-cancer properties
  • It is also rich in several important antimicrobial compounds that may help inhibit the growth of bacteria, fungi, and parasites.
• Annatto is rich in antioxidants that help protect cells from damage by neutralizing the effects of harmful free radicals in the body.
• Additionally, it is high in tocotrienols, a potent form of vitamin E. According to some studies, it may help maintain strong and healthy bones.

The Battle of Adwa

The Indian Prime Minister recently laid a wreath at the Adwa Victory Monument in Addis Ababa, the capital of Ethiopia, to honor Ethiopia's historic victory in the 1896 Battle of Adwa. This battle is considered a symbol of independence and self-respect in Africa's colonial history.

The Battle of Adwa: A Historic Turning Point in Colonial History

• This decisive battle was fought on March 1, 1896, near the Adwa region of Ethiopia, between the Ethiopian Empire (then known as Abyssinia) and Italy.
• This conflict was the final and most important battle of the First Italo-Ethiopian War (1895–1896). The roots of this war lay in Italy's ambition to establish its own empire in Africa.
• This endeavor was part of the ongoing "Race for Africa" ​​among European powers, in which several countries competed to establish colonies on the continent.
• The victory at Adwa holds special significance because it was the first major and decisive victory by an African army over a European power during the colonial period. It inspired people throughout Africa struggling against colonialism.

Subsequent events and the second conflict

• Despite the victory at Adwa, Italy did not abandon its ambition to establish control over Ethiopia. In 1935, Italian dictator Benito Mussolini once again invaded Ethiopia, beginning the Second Italo-Ethiopian War.
• In the initial stages of this second conflict, Ethiopia faced Italian forces almost alone. However, it received limited support from anti-fascist volunteers from the United States and other countries.

Liberation of Ethiopia

In 1940, Italy declared war on Great Britain. British forces subsequently supported Ethiopian forces, and in 1941, Italian forces were expelled from Ethiopia, restoring the country's independence.

INS Hansa Hosts MH-60R ‘Ospreys’ Squadron

Why in News ?

The Indian Navy has commissioned its second MH-60R helicopter squadron, INAS 335 (‘Ospreys’), at INS Hansa in Goa, marking a significant step in strengthening naval aviation and maritime combat capability on the western seaboard.

Background and Context

India’s expanding maritime interests, increasing submarine activity in the Indian Ocean Region (IOR), and the need for persistent surveillance have made carrier- and ship-borne helicopters critical force multipliers. The induction of advanced, multi-role helicopters like the MH-60R Seahawk is part of the Navy’s broader push to modernise its aviation arm and enhance Anti-Submarine Warfare (ASW), surface combat, and maritime domain awareness. INS Hansa, as the Navy’s largest air station, plays a pivotal role in hosting these high-value aviation assets.

INS Hansa: Key Facts

• Location: Near Dabolim, Vasco da Gama, Goa
• Status: Largest Indian Naval Air Station
• Dual Role: Includes a civil enclave (Dabolim Airport) handling domestic and international flights
• Origins:
  • Originally commissioned at Sulur (Tamil Nadu)
  • Relocated to Dabolim after the liberation of Goa
  • Officially moved in 1964

Strategic Importance

• Major hub for shore-based and carrier-capable naval aviation
• Hosted the second P-8I maritime patrol aircraft squadron (2022)
• Central to future induction of MQ-9B Sea Guardian RPAs, enhancing long-endurance maritime surveillance

INAS 335 (‘Ospreys’): MH-60R Squadron

• Second Indian Navy squadron to operate MH-60R helicopters
• First MH-60R squadron: Commissioned at Kochi in 2024
• Although commissioned at Goa, the helicopters have already demonstrated operational readiness during:
  • Operation Sindoor
  • TROPEX-25
  • Tri-Services Exercise 2025

The squadron significantly boosts India’s integral helicopter capability on the western seaboard, a region vital for trade routes, energy security, and naval deployments.

MH-60R Seahawk: Key Capabilities

• Type: All-weather, day–night, multi-role naval helicopter
• Primary Roles:
  • Anti-Submarine Warfare (ASW): Detection, tracking, and engagement of submarines
  • Anti-Surface Warfare (ASuW): Targeting enemy surface vessels
• Secondary Roles:
  • Search and Rescue (SAR)
  • Medical Evacuation (MEDEVAC)
  • Vertical Replenishment (VERTREP)

Operational Advantage

• Designed for shipborne and shore-based operations
• Enhances fleet survivability, reach, and logistics sustainment during prolonged deployments

Strategic Significance

• Strengthens India’s maritime deterrence in the IOR
• Enhances submarine-hunting capability amid rising undersea threats
• Improves interoperability with friendly navies operating similar platforms
• Reinforces western seaboard security, covering critical ports and sea lanes

SC Steps In to Save the Aravallis

Why in News ?

The Supreme Court has settled a uniform definition of the Aravalli hills and ranges, paused fresh mining leases across Delhi, Haryana, Rajasthan, and Gujarat, and issued comprehensive directions for sustainable mining and ecological restoration of the region.

Background and Context

The Aravalli range has faced decades of ecological stress due to unregulated mining, urban expansion, and weak enforcement of environmental laws. The absence of a uniform legal definition allowed States and private entities to exploit regulatory gaps. Given the Aravalli’s critical role in preventing desertification and protecting the National Capital Region (NCR), judicial intervention became necessary to ensure coordinated, science-based conservation.

Aravalli Mountain Range: Geographic & Ecological Significance

• One of the oldest mountain systems in the world, dating back nearly 2 billion years
• Extends over 650 km from Delhi to Gujarat, passing through Haryana and Rajasthan
• Acts as a natural barrier against the eastward spread of the Thar Desert
• Plays a key role in:
  • Climate regulation
  • Groundwater recharge
  • Biodiversity conservation
• Source or support system for rivers such as Chambal, Sabarmati, and Luni
• Rich in minerals like limestone, marble, sandstone, copper, zinc, and tungsten

Environmental Impact of Mining: Excessive quarrying has led to forest loss, falling water tables, increased air pollution, and rising temperatures—especially affecting the NCR.

Mining, Degradation, and Judicial Intervention

• Mining restrictions have existed since the early 1990s, but enforcement remained weak
• In 2009, the Supreme Court imposed a mining ban in parts of Haryana (Faridabad, Gurugram, Mewat)
• Illegal and unregulated mining continued, undermining conservation efforts
• With India’s commitments under the UN Convention to Combat Desertification, the Court revisited the issue to adopt a long-term ecological approach

Uniform Definition of the Aravallis

The Core Problem

• States used different criteria (slope, buffer zones, revenue records) to define Aravalli land
• This led to regulatory loopholes and selective exclusions

Supreme Court’s Solution

• A multi-institutional committee was formed, including:
  • Environment Ministry
  • Forest Survey of India (FSI)
  • Geological Survey of India (GSI)
  • State Forest Departments
  • Central Empowered Committee (CEC)
• Accepted Definition (2025):
  • All hills above 100 metres in height qualify as part of the Aravalli range

The Court held this definition to be practical, inclusive, and enforceable, compared to earlier ambiguous criteria.

Central Empowered Committee (CEC): Key Recommendations

• Scientific mapping of the Aravalli range across all States
• Macro-level Environmental Impact Assessment (EIA) of mining activities
• Complete prohibition of mining in:
  • Wildlife corridors
  • Aquifer recharge zones
  • Water bodies and ecologically sensitive habitats
• No new mining leases or renewals until mapping and assessments are completed
• Strict regulation of stone-crushing units to curb air pollution

These recommendations were accepted by the Supreme Court in November 2025.

Sustainable Mining and the Aravalli Green Wall

• The Court avoided a total mining ban to prevent the rise of illegal mining mafias
• Existing legal mining may continue under stringent environmental safeguards
• Fresh leases remain paused until scientific assessments are completed

Aravalli Green Wall Project (2025)

• Launched by the Centre to restore degraded landscapes
• Covers a 5-km buffer zone across 29 districts in Delhi, Haryana, Rajasthan, and Gujarat
• Aims to restore 26 million hectares of degraded land by 2030
• Supports India’s goal of land degradation neutrality