Editorials/Opinions Analysis For UPSC 28 November 2022

Editorials/Opinions Analysis For UPSC 28 November 2022

Contents

1. PSLV-C54 successfully places earth observation satellite
2. Open offer’ route to take control of news Channel

PSLV-C54 successfully places earth observation satellite

Context

In one of its longest missions, the Indian Space Research Organisation (ISRO) successfully launched 9 satellites, including an Earth Observation Satellite (EOS-06), into multiple orbits using the space agency’s Polar Satellite Launch Vehicle (PSLV-C54).

Relevance:

GS Paper 3:  Science and Technology- developments and their applications and effects in everyday life.

Mains Question

ISRO’s workhorse rocket is the Polar Satellite Launch Vehicle (PSLV). Elaborate. (250 words)

Concerning the mission:

• Launch vehicle: PSLV: This is the PSLV’s 56th flight and the PSLV-24th XL’s flight from the Satish Dhawan Space Centre (SDSC), SHAR, Sriharikota.
  • The PSLV is an expendable medium-lift launch vehicle designed and operated by the Indian Space Research Organization.
  • It was created in 1993 to allow India to launch its Indian Remote Sensing Satellites (IRS) into sun-synchronous orbits.
• PSLV is also capable of launching small satellites into Geostationary Transfer Orbit (GTO).
  • PSLV has launched several notable payloads, including India’s first lunar probe, Chandrayaan-1, India’s first interplanetary mission, Mars Orbiter Mission (Mangalyaan), and India’s first space observatory, Astrosat.
  • PSLV-XL is an upgraded version of PSLV that uses larger strap-on motors (PSOM-XL or S12) to achieve higher payload capability to Sun-synchronous orbit of up to 1,800 kg (4,000 lb).
• Satellites: o ISRO Nano Satellite-2 for Bhutan (INS-2B), Anand, Astrocast (four satellites), and two Thybolt satellites are among the eight nano satellites.
  • EOS-6: The Oceansat series’ third-generation satellite, designed to observe ocean colour data, sea surface temperature, and wind vector data for use in oceanography, climatology, and meteorology.
• Satellite separation: o The primary satellite (EOS-06) was separated in Orbit-1 and then orbit was changed using two Orbit Change Thrusters (OCTs) installed in the PSLV-Propulsion C54’s Bay Ring.
  • Later, all seven commercial satellites from NewSpace India Limited (NSIL) were successfully launched.
• Astrocast, a 3U spacecraft from Spaceflight Inc in the United States, was separated.
• The Thybolt, a 0.5U spacecraft bus from Dhruva Space with a communication payload to enable rapid technology demonstration and constellation development, was then launched into the desired orbit.
• Anand three axis stabilised nano satellite, a technology demonstrator from Pixxel in India, was also launched into orbit.

The India-Bhutan Satellite:

• The INS-2B satellite, a joint mission between India and Bhutan, contains two payloads: o NanoMx, a multispectral optical imaging payload developed by Space Applications Centre (SAC), and o APRS-Digipeater, built collaboratively by DITT-Bhutan and URSC.
• In addition, the ISRO is collaborating with Bhutan to establish a ground station in Thimphu, which will be operational soon.

ISRO’s future missions include:

• A mission to the sun with its satellite Aditya-L1, a coronagraphy spacecraft to study the solar atmosphere, using a PSLV rocket next year.
• The space agency will also launch four navigation satellites for the country’s NavIC constellation, the first of which will be launched in 2023.

Open offer’ route to take control of news Channel

Context

The Adani Group recently announced that it would launch an open offer, as required by the Securities and Exchange Board of India (SEBI), to acquire another 26% stake in television channel NDTV Ltd.

Relevance

GS Paper – 3: Statutory Bodies, Quasi Judicial Bodies, Capital Market

Mains Question

SEBI’s autonomy and ability to function effectively will be jeopardized. Analyze the recent amendment to the SEBI Act in light of the statement. (150 Words)

Background:

• On August 23, the Adani Group, a conglomerate with diverse business interests, purchased a 29.18% stake in the television channel.
• On November 22, the Adani Group launched an open offer to purchase an additional 26% stake in NDTV.
• The offer is valid until December 5, 2022.

What exactly is an open offer?

• An open offer is made by a company that is acquiring shares (in this case, Adani) to the shareholders of the target company (NDTV), inviting them to sell their shares at a specific price, according to the SEBI Rules.
• Purpose – To provide existing shareholders with an exit option in the event of a change in control or a substantial acquisition of shares.
• So, in the case of NDTV, because Adani Group has emerged as a large shareholder with 29.18% shareholding and is likely to change the company’s control structure, it must make an open offer to buy another 26% stake in order for minority shareholders willing to exit the company to tender their shares.

When does an Open Offer become active?

• An open offer is triggered if an acquirer owns more than 25% of the company’s public shares.
• Prior to 2011, when the new takeover rules went into effect, an open offer was triggered if an acquirer owned more than 15% of a company’s public shareholding.

What happens following the Open Offer?

• If the Adani Group obtains the required 26% stake, the group’s total stake will increase to 55.18%, allowing it to take management control of the target company (NDTV).
• The acquirer will be able to bring in their own key personnel. If the Adanis fail to obtain a 50% stake, they can buy shares from other institutional investors.
• The Adanis may need to raise the offer price to obtain the required majority.

SEBI (Securities and Exchange Board of India):

• Established by the Government of India in 1992, the SEBI is a statutory regulatory body. The SEBI Act of 1992 gave it statutory authority.
• Goal: To regulate the Indian securities market and protect the interests of investors in securities.

Why was SEBI established?

• SEBI was established to keep an eye out for unfair practises and to protect investors from them.
• The organisation was established to meet the needs of the three following groups:
  • Issuers: SEBI works to provide investors with a marketplace where they can raise funds in an efficient and fair manner.
  • Intermediaries: SEBI strives to provide intermediaries with a professional and competitive market.
  • Investors: SEBI protects investors and provides them with accurate information.

SEBI’s powers include:

• Quasi-judicial powers – o In cases of securities fraud and unethical practises, SEBI has the authority to issue judgments.
  • The said authority aids in the maintenance of transparency, accountability, and fairness in the securities market.
• Quasi-executive powers o SEBI has the authority to examine the Book of Accounts and other vital documents in order to identify or gather evidence of violations.
  • If a violation of the regulations is discovered, the regulatory body has the authority to impose rules, pass judgments, and take legal action against violators.
• Quasi-legislative powers – o To protect the interests of investors, the authoritative body has been given the authority to create appropriate rules and regulations.
  • These rules typically include listing obligations, insider trading regulations, and essential disclosure requirements.
  • The body develops such rules and regulations in order to eliminate securities market malpractices.