T+1 settlement cycle

India will follow China in implementing the one-day cycle, which will improve operational efficiency, speed up fund transfers, facilitate the delivery of shares, and make it easier for stock market participants.

About the T+1 settlement cycle:

• The T+1 settlement cycle requires that trade-related settlements be completed a day, or 24 hours after a transaction is completed.
• According to T+1, for instance, if a consumer purchased shares on Wednesday, they would be deposited to their demat account on Thursday.
• Up to 256 large-cap and top mid-cap equities, including those listed on the Nifty and Sensex, would be subject to the T+1 settlement.

Historical aspect:

• Stock markets used a weekly settlement schedule up until 2001.
• The markets then switched to a T+3 rolling settlement arrangement, and in 2003, to T+2.
• In spite of criticism from foreign investors, T+1 is being implemented. The T+1 system has not yet been adopted by the markets in the United States, United Kingdom, and the Eurozone.

Settlement in T+1 vs. T+2:

• In T+2, if an investor sells shares, the trade is settled in two working days (T+2), but the broker handling the transaction won't get paid until the third day and won't credit the investor's account until the fourth day.
• In reality, the investor won't receive their money for three days.
• In T+1, the trade is settled within one business day, and the investor receives their money the next day.
• The transition to T+1 won't necessitate significant operational or technical adjustments from market players, and it won't fracture and put the core clearing and settlement ecosystem at risk.

The benefit of this system:

• Faster fund transfers: By releasing the margins on T+1 day and allowing investors to get the monies in their bank accounts within 24 hours following the sale of shares, this will also help investors reduce their overall capital requirements.
• Safer markets: A T+1 settlement cycle shortens the time horizon while also reducing the amount of cash needed to collateralize the risk and free up money.
• Reduction in Unsettled Trades: By reducing the number of unresolved trades that are open at any given time by 50%, it also minimizes the exposure of the Clearing Corporation to unresolved trades.
• The window of time for a counterparty's bankruptcy or insolvency to affect the settlement of a trade is smaller the shorter the settlement cycle.
• Share delivery: If an investor sells a share in the T+1 format, they will receive a payment within a day, and the buyer will receive the shares in their demat account within the same day.
• Operational effectiveness: From a liquidity standpoint, the shorter transaction settlement cycle that is scheduled to be implemented bodes well for the Indian equity markets. The speedier rolling of money and stocks will increase operational efficiency.
• Systemic risk reduction: Shortening the settlement cycle will aid in this process.

Why are foreign investors opposed?

• Due to the fact that they operate in many locations, foreign investors encounter operational challenges.
• Time zone disparities, information flow procedures, and currency exchange challenges were additional problems.
• Under the T+1 system, it is challenging for foreign investors to hedge their net India exposure in dollar terms at the end of the day.

World Neglected Tropical Diseases Day: 30 Jan

• World Neglected Tropical Diseases (NTD) Day was designated by the 74th World Health Assembly, which is currently in session.
• The United Arab Emirates proposed the day to be recognized. The delegates unanimously agreed to adopt it. Informally, the inaugural World NTD Day was observed in 2020.
• The World Health Assembly is the decision-making body of the World Health Organization (WHO).

About Neglected Tropical Diseases (NTD):

• A set of illnesses known as NTDs are particularly prevalent among underserved populations in poor nations in Africa, Asia, and the Americas.
• Numerous pathogens, including viruses, bacteria, protozoa, and parasitic worms, are responsible for their development.
• NTDs are particularly prevalent in tropical regions where residents lack access to clean water and secure facilities for disposing of human waste.
• Compared to illnesses like malaria, HIV/AIDS, and tuberculosis, these diseases typically receive less funding for study and treatment.
• NTDs include, for instance, envenomation from a snakebite, scabies, yaws, trachoma, leishmaniasis, and Chagas disease.
• The London Declaration on NTDs was adopted on January 30, 2012, to acknowledge the burden that NTDs pose on the world.
• To make a commitment to eradicating diseases, representatives from the World Health Organization (WHO), the World Bank, the Bill and Melinda Gates Foundation, major international pharmaceutical corporations, and numerous national governments gathered in London's Royal College of Physicians.

NTD Hypothesis:

• More than a billion individuals worldwide are impacted by NTDs.
• They can be avoided and treated. However, these illnesses continue to have terrible health, social, and economic repercussions due to their complex interactions with poverty and ecological systems.
• Over 1.7 billion people are affected by 20 NTDs worldwide.
• At least 11 of these diseases are the most prevalent in India, where parasitic diseases like kala-azar and lymphatic filariasis impact millions of people, frequently the most vulnerable and underprivileged.

Indian Initiatives to End NTDs:

• As part of stepping up efforts to end NTDs, the Accelerated Plan for Elimination of Lymphatic Filariasis (APELF) was introduced in 2018.

• For eliminating Kala-azar, a regional partnership backed by WHO that was formed in 2005 by the Governments of India, Bangladesh, and Nepal to speed up the early identification and treatment of those who are most at risk as well as to enhance disease surveillance and management of sandfly populations that is a vector for (Kala-azar).
• India has previously eradicated a number of other NTDs, such as trachoma, guinea worm, and yaws.

Lake Chad Basin

• The risky connection between climate change and violence in nations like Cameroon, Chad, Niger, and Nigeria in the Lake Chad Basin has been underlined in a report by a humanitarian organisation.

More about the news:

• Conflict and migration in the area are being fueled by droughts, flooding, and a decreasing Lake Chad.
• According to a report by Refugees International, communities are becoming tenser and individuals are being displaced as a result of shrinking natural resources brought on by unfavorable weather.
• An extra 11 million people require humanitarian aid, and there have been about 3 million displaced persons.
• Lake Chad, one of the greatest freshwater lakes in Africa, has decreased by 90%.
• Across the region, about 10 million people want immediate aid. The Lake Chad situation is regarded by the UN as "one of the worst in the world."

About Lake Chad Basin:

• The Sahel, a sizable semi-arid region south of the Sahara desert, is where Lake Chad is situated.
• Nigeria, Chad, Cameroon, and Niger are its four neighbours.
• The Lake Chad basin includes wetlands of significant global conservation value, biosphere reserves, World Heritage, and Ramsar areas.
• Over 30 million people in the area rely on the lake for drinking water, irrigation, fishing, livestock, and economic activities.
• It receives most of its water from the Chari River via the Lagone tributary.
• 90% of its water supply previously came from the Lagone tributary.
• In 60 years, Lake Chad has decreased by 90%, with climate change playing a key role.
• Significance - The Lake is essential for the pastoral, farming, and indigenous communities in these nations.
• 42 million people live in the Lake Chad basin in West and central Africa, which makes up about 8% of the continent.
• Problem - The region is particularly susceptible to drought, and historically, the lake has decreased during extended dry spells.
• Competition over the limited resource has grown as the lake gets smaller, and conflicts between communities have risen as a result.
• Competition for land, water, and food has risen during the past few decades.
• This competition is causing intercommunal conflict and eviction.

Overcoming the obstacles:

• The afflicted nations' governments are currently engaged in conflict on a number of fronts near Lake Chad.
• First, a military offensive against the terrorists is being carried out. The terrorists are still being attacked by a joint multinational task force made up of soldiers from Nigeria, Niger, Cameroon, Chad, and Benin.
• Second, governments seek to put an end to the bloody disputes between farmers and herders over pasture and water.
• Third, they are looking for a long-term solution to the lake's drying up, which is making the area's poverty worse.
• A multibillion-dollar project that would channel water from the 2,400 km away Ubangi River in the Democratic Republic of the Congo is part of an ambitious attempt to restore the lake to its former splendor. In 2018, a feasibility study was already in progress.

Way Forward

• Reaching out to the rebel factions is necessary in order to launch a participatory planning and implementation process for a peace-building initiative.
• The empowerment and integration of refugees and internally displaced people into society should be a top priority.
• Deep-seated problems demand ongoing participation in order to be solved sustainably. This is made feasible by encouraging global development cooperation and strong governance.
• Humanitarian aid and radical military action will never be able to bring back peace and stability.
• Instead, it is important to strengthen early warning and food security analysis tools to assist communities in successfully preparing for risks and upcoming shocks.

Kashmiri Pashmina Shawl

• Famous pashmina shawls from Kashmir, known for generations for their exquisite buta or paisley patterns, received a French influence.
• The change from exquisite embroidery to abstract paintings on Kashmiri shawls has brought back the cloth with a more modern look.

About The Pashmina:

• The Persian word "Pashm," which meaning "soft gold," is where the name "pashmina" originates.
• Cashmere, an animal fibre obtained from the Changthangi goat (Capra aegagrus hircus), of Ladakh, is the source of pashmina.
• It is native to Leh-Ladakh and Jammu & Kashmir's high-altitude regions.
• Every spring, goats used to make pashmina shed their winter coats. One goat sheds between 80 and 170 grams of fibre.
• The goats' undercoat is naturally shed in the spring (moulting season), and it grows back in the winter.
• Instead of shearing the goat as is done with other fine wool, the undercoat is removed by combing the animal.
• The pashmina wool shawl was advertised as a substitute for the Shahtoosh shawl. The Tibetan antelope is used to make Shahtoosh Shawls.
• Kashmiri Pashmina Shawls has also received GI Tag.

Features:

• In addition to its typical dye-absorbing ability, it is well renowned for being warm, lightweight, and soft.
• The Guinness Book of World Records has recognised pashmina as the priciest fabric ever made.
• The finest variation of cashmere, pashmina wool is valued on the global market and is thinner than a human hair.
• Pashmina is among the world's finest and highest-quality wools.
• The Pashmina Shawl caught the interest of people from all over the world, making it one of the most sought-after shawls worldwide.
• The local economy was helped by its high demand.
• It is well-known for its use in exquisite shawls and other handcrafted goods.
• They are a beautiful variation on shawls made of cashmere wool.