UPSC Daily Current Affairs | Prelim Bits 16-07-2024

Semaglutide vs tirzepatide

India's drug regulator could soon approve the weight-loss drug tirzepatide.

• Semaglutide and tirzepatide are small proteins that increase levels of hormones like GLP-1, helping to control weight via the brain and digestive tract.

Glucagon-like peptide 1 (GLP-1) is a hormone most commonly known for stimulating insulin release following meal consumption.

• Manufacturer- Eli Lilly, American pharmaceutical company.
• The United States Food and Drug Administration (FDA) has approved Wegovy (semaglutide) and Zepbound (tirzepatide) for chronic weight management in adults.
• Prescription- These drugs can be prescribed to adults who are obese (BMI over 30) or overweight (BMI between 27 and 30) with at least one weight-related health condition, such as high blood pressure, high cholesterol, or type 2 diabetes.

• Global scenario- The development of various weight loss drugs has been a game changer for obesity treatment in recent years, especially in the US and Europe.
• Semaglutide vs tirzepatide drugs are yet to be commercially available in India.

References

1. Indian Express | Drug tirzepatide
2. Healthline | Tirzepatide vs. Semaglutide

Information Ratio

SEBI's recent consultative paper recommends that asset management companies (AMCs) disclose their funds' information ratio (IR) to highlight risk-adjusted returns.

• The Information Ratio (IR) is a quantitative measure used to evaluate the performance of an investment portfolio or financial asset compared to a benchmark index, factoring in the volatility of the returns.
• The benchmark typically represents the market, an industry, or a specific sector.
• A higher information ratio indicates that the fund manager has consistently outperformed the benchmark and similar fund managers over a given period.
• IR figures are usually annualized for easy understanding.
• Calculation
  • Information Ratio = (Portfolio Return−Benchmark Return​)/Tracking Error
• The Portfolio Return refers to the portfolio’s overall return.
  • Benchmark Return - The value of the benchmark index that was chosen.
  • Tracking Error- The standard deviation of the difference in portfolio returns from benchmark returns.
• Applications for Information Ratio
  • Performance Evaluation- Investors utilize internal rate of return (IR) to assess portfolio manager performance. It aids in analyzing whether the management is generating enough extra returns for the level of risk taken.
  • Portfolio Comparison- IR enables the comparison of many portfolios against the same benchmark, resulting in a standardized measure of risk-adjusted performance.
  • Investment Decision-Making- Investors utilize IR to make informed decisions about allocating funds to different portfolios or managers based on risk-adjusted returns.

References

1. The Hindu business line | Information Ratio
2. Lemonn | Information Ratio

Zoonotic diseases

United Nations Environment Programme (UNEP) has issued a stark warning about emerging zoonotic diseases that may trigger another pandemic by 2030.

• About- Zoonotic diseases are infections that are spread between people and animals.

• Different pathogens- Many different pathogens can cause zoonoses. These include Bacteria, Parasites (protozoa or parasitic worms), Viruses, Fungi, and Prions.
• Types- There are various types of zoonotic diseases.
• Examples include rabies (from bites of infected animals), Ebola (through contact with infected animals), Lyme disease (from ticks), and COVID-19 (thought to originate from bats).
• Symptoms- Some common symptoms include Fever, Tiredness (fatigue), Headache, Body aches, Rash, Diarrhoea, and Vomiting.
• Prevention- Prevention involves measures like avoiding contact with wild animals, proper food handling and cooking, using insect repellents, and vaccination of animals.
• Recommendations- The UNEP report emphasizes the urgent need for proactive measures to address ecological disruptions and human-wildlife interactions, stressing that safeguarding planetary health is crucial in preventing future zoonotic outbreaks.
• Understanding zoonotic diseases is crucial for public health preparedness and managing outbreaks effectively.

References

1. Down to Earth | Zoonotic diseases
2. Cleveland Clinic | Zoonotic Diseases

Emergency Credit Line Guarantee Scheme (ECLGS)

A report recently released shows that the ECLG scheme extended liquidity support of over ₹3.68-lakh crore to 1.19 crore businesses in just a 3-year tenure between May 2020 and March 2023.

• Aim - It was aimed to support businesses and individuals affected by the COVID-19 pandemic.
• Launch - 2020.
• Ministry - It is under the operational domain of the Ministry of Finance, Department of Financial Services (DFS).
• The scheme aims to provide emergency funding to mitigate the economic impact of the pandemic.
• It is a part of the Atmanirbhar Bharat Abhiyan.
• Objective - The scheme is designed to ease the financial burden by providing an additional source of funding with minimal interest rates and extended repayment terms.
• Funding - The overall ceiling initially announced for ECLGS was Rs 3 lakh crore which was subsequently enhanced to Rs 4.5 lakh crore.
• However, ECLGS being a demand-driven scheme, sanctions are made by lending institutions based on assessment of borrower’s requirement and their eligibility.
• Guarantee - The scheme provides a 100% guarantee on the credit facilities extended by banks and financial institutions.
• Interest rates - The government has capped the interest rate under ECLGS scheme at
  • 9.25% for Banks and Financial Institutions and
  • 14% for Non-Banking Financial Institutions.
• This scheme also offers a one-year moratorium on payment of principle component.  
• Implementation - The scheme is administered through public sector banks, private sector banks, and non-banking financial companies (NBFCs).

Reference 

The Hindu Business line | Credit to ECLGS

National Company Law Tribunal

Recently, the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted BCCI’s petition seeking insolvency proceedings against ed-tech giant Byjus.

• It is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act. 
• Ministry - Ministry of Corporate Affairs.
• Background - It is the outcome of the Eradi Committee.
• The NCLT functions like a regular court, ensuring fair, unbiased case evaluations based on principles of natural justice.  
• It issues decisions in the form of orders.
• Appeals - Decisions of the tribunal may be appealed to the National Company Law Appellate Tribunal, the decisions of which may further be appealed to the Supreme Court of India on a point of law.  
• Major Functions of NCLT
  • It has been empowered to take several steps, from canceling the registration of a company to dissolving any company.
  • The Tribunal could even render the liability or charge of members unlimited.
  • It is also empowered to hear grievances of rejection of companies in transferring shares and securities and under section 58- 59 of the Act.
  • It has the power to order an investigation. It could be conducted within India or anywhere in the world. 

Reference

The Indian Express | NCLT