Here are 2 Back2Basics collections from today’s news items

B2B #1: From news- FBIL will now do the valuation of G-Secs

Government securities

1. A Government Security (G-Sec) is a tradeable instrument issued by the Central Government or the State Governments
2. It acknowledges the Government’s debt obligation
3. Such securities are short-term (usually called treasury bills, with original maturities of less than one year) or long-term (usually called Government bonds or dated securities with the original maturity of one year or more)
4. In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs)
5. G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments

B2B #2: From News- Central Vigilance Commission wants to keep an eye on private banks

Central Vigilance Commission (CVC)

1. CVC is an apex Indian governmental body created in 1964 to address governmental corruption
2. It has the status of an autonomous body, free of control from any executive authority
3. It is charged with monitoring all vigilance activity under the Central Government of India, advising various authorities in central Government organizations in planning, executing, reviewing and reforming their vigilance work
4. The CVC is not an investigating agency. The only investigation carried out by the CVC is that of examining Civil Works of the Government.
5. The Commission shall consist of:

• A Central Vigilance Commissioner – Chairperson;
• Not more than two Vigilance Commissioners – Members

6. The Central Vigilance Commissioner and the Vigilance Commissioners shall be appointed by the President on the recommendation of a Committee consisting of the Prime Minister (Chairperson), the Minister of Home Affairs (Member) and the Leader of the Opposition in the House of the People (Member)