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Francophonie Summit, GI tag to Assamese products, SEBI tightens F&O rules

Table of Contents

(General Studies II – Polity Section – Indian Constitution—Historical Underpinnings, Evolution, Features, Amendments, Significant Provisions and Basic Structure; Separation of Powers between various organs Dispute Redressal Mechanisms and Institutions.)

  • Government control over Hindu temples is once again news after the Tirupati laddu Controversy and has sparked debate on religious autonomy, fairness, and the use of temple funds.
  • While governments manage Hindu temples, other religious institutions like mosques and churches have greater independence. The debate focuses on whether state involvement infringes on religious rights and whether such control is justified for societal welfare and transparency.

Why the Demand to Free Temples Has Gained Traction?

  1. Political and Religious Mobilization: Organizations like the RSS and VHP have long demanded the liberation of temples from state control. The RSS passed a resolution on this in 1959, and the issue has gained political momentum with support from the BJP in recent years.
  2. Hindu Identity and Cultural Preservation: Many Hindus view temples not just as places of worship but as symbols of cultural heritage and religious identity. The demand to free temples is also about preventing state interference in religious traditions and practices.

History of Government Control Over Temples:

  1. Colonial-Era Intervention: British colonial rulers began controlling Hindu temples, citing concerns about mismanagement of temple resources. Their primary goal was to regulate temple finances, fearing corruption or misuse of temple funds.
  2. Post-Independence Continuation: After Independence, several state governments continued to control temples through legislation. The rationale for state control was primarily focused on:
    • Ensuring equitable access to temples, especially for lower castes.
    • Managing temple wealth effectively to prevent misappropriation.
  3. State Laws on Temple Management: States like Tamil Nadu, Karnataka, and Andhra Pradesh enacted specific laws to regulate temple administration, giving governments the authority to oversee temple finances, appoint trustees, and even control offerings.

Arguments in Favor of Government Control:

  1. Transparency and Accountability: Proponents argue that government oversight ensures that temple funds are managed transparently, reducing corruption and ensuring that the vast wealth collected by temples is used responsibly.
  2. Social Welfare and Reforms: State control allows the government to direct temple funds towards broader welfare activities, including schools, hospitals, and social services, benefiting the entire community. This aligns with the goal of social reform and public benefit.
  3. Preventing Mismanagement: Supporters believe that government oversight acts as a safeguard against the potential mismanagement or misappropriation of temple funds by private individuals or hereditary trustees.
  4. Promoting Equality: State control ensures that temples are open to all castes and communities, promoting inclusivity and social justice, especially in regions where caste discrimination historically restricted access to certain temples.

Arguments Against Government Control:

  1. Violation of Religious Rights: Hindu organizations, such as the RSS and VHP, argue that the state’s control over temples violates Article 26 of the Indian Constitution, which guarantees religious denominations the right to manage their own religious affairs. They view state intervention as an infringement on religious freedom.
  2. Unequal Treatment of Religions: Critics highlight that Hindu temples are disproportionately targeted by government control, while mosques and churches enjoy more autonomy in managing their own affairs. This perceived discrimination has been a central grievance for many Hindu groups.
  3. Use of Temple Funds for Non-Religious Activities: Opponents argue that governments often redirect temple funds to activities unrelated to religious purposes, such as funding secular welfare programs. They claim this is an unjust appropriation of funds meant for religious use.
  4. Political Interference: There is concern that government control introduces political influence into temple management, where appointments and decisions could be based on political favoritism rather than merit or religious considerations.

Relevant Legal Cases and Precedents:

  1. Shirur Mutt Case (1954): The Supreme Court ruled that while religious institutions have the right to manage religious affairs under Article 26(d), the state can regulate secular aspects, such as temple finances. This case set the precedent for continued government oversight of temple administration.
  2. Ratilal Panachand Gandhi Case (1954): The Supreme Court reiterated that religious bodies have the right to manage religious activities, but the state can regulate their trust properties. This reinforced the state’s power over financial and secular management.
  3. Pannalal Bansilal Pitti Case (1996): The court upheld a law abolishing the hereditary right of chairmanship in a religious institution, affirming that the state can intervene in administrative matters, even within religious organizations. This ruling emphasized that religious institutions are not immune from state regulation in administrative affairs.
  4. Ashwini Upadhyay’s Petition (2022): In a recent petition before the Supreme Court, the petitioners argued for freeing temples from government control. However, the Court acknowledged the societal role played by temples under the current system, indirectly supporting continued state oversight. The petition was eventually withdrawn, but it highlighted the ongoing tensions over the issue.

The debate over government control of Hindu temples reflects a complex tension between religious autonomy and state oversight. Courts have generally supported state regulation of secular aspects, but striking a balance between religious freedom and public interest remains a critical challenge for India’s legal and political frameworks especially in times where religion is constantly used as a political tool.

  • The 19th Francophonie Summit was conducted from October 4-5, 2024 in France.
  • Key Themes of the 19th Francophonie Summit
  • Renewal of Multilateralism: It supports for the bid by India and other G4 nations for permanent seats in the United Nations Security Council (UNSC) and boosts efforts for reform of international financial institutions like the World Bank and the International Monetary Fund (IMF).
  • Digital Technology and Artificial Intelligence (AI): It emphasises addressing the proliferation of AI and its impact on society. It focuses on promotion of linguistic diversity through technology. AI Action Summit will be held in France in February 2025.
  • Cultural and Linguistic Diversity: It aspires to engage civil society stakeholders directly with summit officials and explore new avenues for cooperation that respect cultural identities.
AI Action Summit
On 10 and 11 February 2025, France will host the Artificial Intelligence (AI) Action Summit, gathering Heads of State and Government, leaders of international organizations, CEOs of small and large companies, representatives of academia, non-governmental organizations, artists and members of civil society.
As part of the AI Action Summit, taking place on in Paris, the Paris Peace Forum is launching an ambitious Call for Projects focused on artificial intelligence.
  • Significance for India
  • Multilateralism reforms aligning with India’s aspirations for a greater role in global governance and opportunities in digital technology and AI sectors.
  • Participation in the FrancoTech Fair alongside the summit and networking with Francophone actors for Indian innovators and businesses.
  • Strengthening ties with France and Francophone countries and collaboration on global issues like climate change, health, and inequality reduction.
Organisation Internationale de la Francophonie (OIF): An international organization representing countries and regions where French is a customary language.
Charter of La Francophonie: Adopted in 1997 at the Hanoi Summit. It establishes the aims, missions, and functioning of the Francophonie organization.
G4 Nations: India, Germany, Japan, and Brazil. They are seeking permanent seats on the United Nations Security Council.

Dig Deeper: Read about India-France relations, with focus on defence ties as well.

  • Geographical Indications (GI) Registry in Chennai has granted GI tags to eight traditional products from Assam, particularly associated with the Bodo tribe.
  • List of Products Granted GI Tags
  • Variants of Rice Beer by Bodo Traditional Brewers Association:
  • Bodo Jou Gwran: A traditional rice beer with the highest alcohol content (~16.11%) among Bodo rice beers. It is integral to Bodo culture; consumed during festivals and rituals.
  • Maibra Jou Bidwi (Maibra Jwu Bidwi or Maibra Zwu Bidwi): A revered rice beer served as a welcome drink. It is made by fermenting half-cooked rice (mairong) with less water. Amao (a natural source of yeast) is added to initiate fermentation.
  • Bodo Jou Gishi: A traditionally fermented rice-based alcoholic beverage. It is consumed during cultural ceremonies and believed to have medicinal properties. It is considered a gift from Lord Shiva.
  • Traditional Food Products by Association of Traditional Food Products:
  • Bodo Napham: A dish made from fermented fish, prepared anaerobically in a sealed container over 2-3 months. It is essential part of Bodo cuisine, known for its unique flavor.
  • Bodo Ondla: A rice powder curry flavored with garlic, ginger, salt, and alkali. It is commonly consumed dish, showcasing traditional cooking methods.
  • Bodo Gwkha (also known as Gwka Gwkhi): A special dish prepared during the Bwisagu festival. It is associated with New Year celebrations and springtime rituals.
  • Bodo Narzi: A semi-fermented food made from jute leaves (Corchorus capsularis). It is rich in Omega-3 fatty acids, vitamins, calcium, and magnesium.
  • Traditional Woven Cloth by Association of Traditional Bodo Weavers:
  • Bodo Aronai: A small, beautiful cloth measuring 1.5-2.5 meters long and 0.5 meter wide. It is worn as a scarf or stole; symbolizes respect and honor. It features motifs inspired by nature, including trees, flowers, and birds.
Geographical Indication (GI) Tag is a sign used on products with a specific geographical origin possessing qualities or a reputation due to that origin. It is administered by Geographical Indications Registry, under the Geographical Indications of Goods (Registration and Protection) Act, 1999.
Bodo Tribe is one of the largest ethnolinguistic groups in Assam. Bodo language is recognized under the Eighth Schedule of the Indian Constitution. Governed under the Bodoland Territorial Council (BTC).
Bwisagu Festival is the most significant festival of the Bodo tribe, celebrating the New Year and spring. It includes dancing, singing, and preparation of traditional foods like Bodo Gwkha.
 

Dig Deeper: Focus on details of Northeastern India’s tribes and their unique attributes

  • Recently, the Securities and Exchange Board of India (SEBI) announced tightening of Futures and Options (F&O) rules to curb excessive speculation in the derivatives market, protect retail investors, and ensure market stability.
  • Key Measures Announced by SEBI
  • Increase in Contract Size for Equity Derivatives: The new contract size has been fixed at minimum ₹15 lakh per contract whereas the previous contract size was between ₹5 lakh and ₹10 lakh.
  • Rationalization of Weekly Index Derivatives: Each exchange can offer weekly expiry contracts on only one benchmark index. This is to address excessive trading and speculation on expiry days, reducing systemic risk.
  • Upfront Collection of Options Premium: Options buyers must pay the entire premium amount upfront. This will prevent undue leverage and ensures that positions are backed by sufficient funds.
  • Intraday Monitoring of Position Limits: Exchanges to monitor position limits intra-day with at least four snapshots during trading hours.
  • Increase in Tail Risk Coverage: Additional Extreme Loss Margin (ELM) of 2% on short options contracts on the day of expiry. This is to cover the risk of significant losses due to rare events.
  • Removal of Calendar Spread Benefit on Expiry Day: Offset benefits from calendar spreads will not be available on the expiry day for contracts expiring that day.
  • Reasons Behind SEBI’s Decision
  • Surge in F&O Trading Volumes: Excessive participation of retail investors in high-risk derivative products without adequate understanding. Eg: F&O turnover increased more than four times from ₹2,189 lakh crore in May 2022 to ₹9,504 lakh crore in May 2024.
  • Systemic Risk to Economic Growth: SEBI and the Reserve Bank of India (RBI) expressed concerns over the potential impact on capital formation and the economy due to speculative trading.
  • Protection of Retail Investors: A significant number of retail investors are incurring losses in F&O trading.
  • Alignment with Government Policy: In Budget 2024-25, increase in Securities Transaction Tax (STT) on F&O trades.
Futures Contract: An agreement to buy or sell an asset at a predetermined price at a specified time in the future.
Options Contract: Gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.
Derivatives: Financial instruments deriving their value from an underlying asset.
Extreme Loss Margin (ELM): Additional margin collected to cover the risk of extreme market movements.
Securities Transaction Tax (STT): A tax levied on every purchase or sale of securities listed on Indian stock exchanges.
 

Dig Deeper: Understand capital markets, financial instruments & regulatory mechanisms.