Current Affairs 13th August 2021

1. News :The government has proposed to free up unused built-up area worth about ₹30,000 crore and idle land inside Special Economic Zones (SEZs) for other economic activity.

Source: The Hindu

  • An SEZ is a territory within a country that is typically duty-free (Fiscal Concession) and has different business and commercial laws chiefly to encourage investment and create employment.
  • The Special Economic Zones Act was passed in 2005. The Act came into force along with the SEZ Rules in 2006
  • SEZs are created also to better administer these areas, thereby increasing the ease of doing business.
  • The Baba Kalyani led committee was constituted by the Ministry of Commerce and Industry to study the existing SEZ policy of India and had submitted its recommendations in November 2018.

2. News : The proposed offering of GAIL through the Infrastructure Investment Trust (InvIT) structure

Source: The Hindu

  • InvITs are instruments that work like mutual funds. They are designed to pool small sums of money from a number of investors to invest in assets that give cash flow over a period of time. Part of this cash flow would be distributed as dividend back to investors.
  • Structured like mutual funds, they have a trustee, sponsor(s), investment manager and project manager.While the trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT.
  • InvITs are regulated by the Securities and Exchange Board of India (SEBI) (Infrastructure Investment Trusts) Regulations, 2014.

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