Buddhism

Buddhism (Pali/Sanskrit: बौद्ध धर्म Buddha Dharma) is a religion and philosophy encompassing a variety of traditions, beliefs and practices, largely based on teachings attributed to Siddhartha Gautama, commonly known as the Buddha (Pāli/Sanskrit "the awakened one"). The Buddha lived and taught in the northeastern Indian subcontinent some time between the 6th and 4th centuries BCE.

Two major branches of Buddhism : Theravada ("The School of the Elders") and Mahayana ("The Great Vehicle"). Theravada—the oldest surviving branch—has a widespread following in Sri Lanka and Southeast Asia. Mahayana is found throughout East Asia and includes the traditions of Pure Land, Zen, Nichiren Buddhism, Tibetan Buddhism, Shingon, Tendai and Shinnyo-en. In some classifications Vajrayana—a subcategory of Mahayana practiced in Tibet and Mongolia—is recognized as a third branch

Buddhist Concepts: Karma, Sansara, Rebirth

4 Noble truths: Dukha, Craving, Liberated State, Path

Buddhist Texts: Pali Tipitaka, Mahayana Sutra

Insurance Sector in India

Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners (English) and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer.

At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business.

The Government of India issued an Ordinance on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commenced business on January 1st 1973 (with its four subsidiaries)

The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies. Until 1999, there were not any private insurance companies in India. The government then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies. Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies

With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

Central Administrative Tribunal

With a view to easing the congestion of pending cases in various High Courts and other Courts in the country, Parliament had enacted the Adminisitrative Tribunals Act, 1985 which came into force in July, 1985 and the Administrative Tribunals were established in November, 1985 at Delhi, Mumbai, Calcutta and Allahabad. Today, there are 17 Benches of the Tribunal located throughout the country wherever the seat of a High Court is located, with 33 Division Benches. In addition, circuit sittings are held at Nagpur, Goa, Aurangabad, Jammu, Shimla, Indore, Gwalior, Bilaspur, Ranchi, Pondicherry, Gangtok, Port Blair, Shillong, Agartala, Kohima, Imphal, Itanagar, Aizwal and Nainital.

The Central Administrative Tribunal has been established for adjudication of disputes with respect to recruitment and conditions of service of persons appointed to public services and posts in connection with the affairs of the Union or other local authorities within the territory of India or under the control of Government of India and for matters connected therewith or incidental thereto. This was done in pursuance of the amendment of Constitution of India by Articles 323A. In the statement of objects and reasons on the introduction of the Administrative Tribunals Act, 1985, it was mentioned that the setting up of such Administrative Tribunals exclusively would go a long way in reducing the burden on the various courts and reduce pendency and would also provide to the persons covered by the Administrative Tribunals a speedy and relatively cheap and effective remedy. In addition to Central Government employees, the Government of India has notified 45 other organizations to bring them within the jurisdiction of the Central Administrative Tribunal. The provisions of the Administrative Tribunals Act, 1985 do not, however, apply to members of paramilitary forces, armed forces of the Union, officers or employees of the Supreme Court, or to persons appointed to the Secretariat Staff of either House of Parliament or the Secretariat staff of State/Union Territory Legislatures.

A Chairman who has been a sitting or retired Judge of a High Court heads the Central Administrative Tribunal. Besides the Chairman, the authorized strength consists of 16 Vice-Chairmen and 49 Members. The conditions of service of Chairman, Vice-Chairmen and Members are governed by the provisions of the Central Administrative Tribunal (Salaries and Allowances and Conditions of Service of Chairman, Vice-Chairmen and Members), Rule, 1985, as amended from time to time. As per Rule 15-A, notwithstanding anything contained in Rule 4 to 15 of the said Rules, the conditions of service and other perquisites available to the Chairman and Vice-Chairmen of the Central Administrative Tribunal shall be same as admissible to a serving Judge of a High Court as contained in the High Court Judges (Conditions of Service) Act, 1954 and High Court Judges (Traveling Allowances) Rules, 1956, as amended from time to time

Special Purpose Vehicle / Entity

A special purpose entity (SPE; or, especially in Europe, special purpose vehicle/SPV, in Ireland – FVC financial vehicle corporation) is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. SPEs are typically used by companies to isolate the firm from financial risk. A company will transfer assets to the SPE for management or use the SPE to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk. SPEs are also commonly used in complex financings to separate different layers of equity infusion. In addition, they are commonly used to own a single asset and associated permits and contract rights (such as an apartment building or a power plant), to allow for easier transfer of that asset. Moreover, they are an integral part of public private partnerships common throughout Europe which rely on a project finance type structure.^[1]

A special purpose entity may be owned by one or more other entities and certain jurisdictions may require ownership by certain parties in specific percentages. Often it is important that the SPE not be owned by the entity on whose behalf the SPE is being set up (the sponsor). For example, in the context of a loan securitization, if the SPE securitisation vehicle were owned or controlled by the bank whose loans were to be secured, the SPE would be consolidated with the rest of the bank's group for regulatory, accounting, and bankruptcy purposes, which would defeat the point of the securitisation. Therefore many SPEs are set up as 'orphan' companies with their shares settled on charitable trust and with professional directors provided by an administration company to ensure that there is no connection with the sponsor.

In his Budget speech, finance minister P Chidambaram has proposed the setting up of a financial special purpose vehicle (SPV) to fund projects in the infrastructure sector. The proposed SPV is expected to lend funds, especially debt funds of longer maturity, directly to eligible projects to supplement loans from banks and financial institutions. The SPV, according to the proposal, will become a vehicle for channelising funds for projects in the roads, ports, airports, and tourism sectors.

SPV is also called special purpose entity (SPE) or special purpose corporation (SPC). In the recent past, it was the Enron debacle that popularised this word, though for the wrong reasons. The collapse of the Enron SPV notwithstanding, the term SPV continues to be a buzzword in the financial sector. FE takes aCloser Look at the concept of the SPV and its implications for the sponsoring company, investors and infrastructure:

Stages of Economic Integration: PTA, FTA, etc.

The degree of economic integration can be categorized into six stages:

1. Preferential trading area
2. Free trade area, Monetary union
3. Customs union, Common market
4. Economic union, Customs and monetary union
5. Economic and monetary union,
   • Fiscal union
6. Complete economic integration

These differ in the degree of unification of economic policies, with the highest one being the political union of the states.

(1) A Preferential trade area (also Preferential trade agreement, PTA) is a trading bloc which gives preferential access to certain products from the participating countries. This is done by reducing tariffs, but not by abolishing them completely. A PTA can be established through a trade pact. It is the first stage of economic integration.

These tariff preferences have created numerous departures from the normal trade relations principle, namely that World Trade Organization (WTO) members should apply the same tariff to imports from other WTO member

(2) A "free trade area" (FTA) is formed when at least two states partially or fully abolish custom tariffs on their inner border. To exclude regional exploitation of zero tariffs within the FTA there is a rule of certificate of origin for the goods originating from the territory of a member state of an FTA. It eliminates tariffs, import quotas, and preferences on most (if not all) goods and services traded between them. It can be considered the second stage of economic integration. Countries choose this kind of economic integration if their economical structures are complementary.

(3) A "customs union" introduces unified tariffs on the exterior borders of the union (CET, common external tariffs). Purposes for establishing a customs union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries. It is the third stage of economic integration.

If their economical structures are competitive, they are more likely to form a customs union

Note: A "monetary union" introduces a shared currency. A "common market" adds to a FTA the free movement of services, capital and labor. An "economic union" combines customs union with a common market. A "fiscal union" introduces a shared fiscal and budgetary policy.

(4) An economic union is a type of trade bloc which is composed of a common market with a customs union. The participant countries have both common policies on product regulation, freedom of movement of goods, services and the factors of production (capital and labour) and a common external trade policy. Purposes for establishing a economic union normally include increasing economic efficiency and establishing closer political and cultural ties between the member countries.Economic union is established through trade pact.

(5) An economic and monetary union is a type of trade bloc which is composed of an economic union (common market and customs union) with a monetary union. It is to be distinguished from a mere monetary union (e.g. the Latin Monetary Union in the 19th century), which does not involve a common market. This is the fifth stage of economic integration. EMU is established through a currency-related trade pact. An intermediate step between pure EMU and a complete economic integration is the fiscal union

(6) Complete economic integration is the final stage of economic integration. After complete economic integration, the integrated units have no or negligible control of economic policy, including full monetary union and complete or near-complete fiscal policy harmonisation.

Complete economic integration is most common within countries, rather than within supranational institutions. A good example of this is a country like the United States of America which can be viewed as a series of highly integrated quasi-autonomous nation states. In this example it is true that complete economic integration results in a federalist system of governance as it requires political union to function as, in effect, a single economy.

In order to be successful the more advanced integration steps are typically accompanied by unification of economic policies (tax, social welfare benefits, etc.), reductions in the rest of the trade barriers, introduction of supranational bodies, and gradual moves towards the final stage, a "political union".

Linguistic Provinces Committees 1948, States Reorganisation Committees

Set up in 1948 after demands of separate states of Karnataka, Andhra, Maharashtra and Kerala.

Chairman: S.K. Dar

Members: Panna Lal, Jagatnarain Lal

Secretary: B.C. Banerjee

Predictably, its report dated December 10, 1948, recommended that linguistic reorganisation of provinces “is not in the larger interests of the Indian nation"

JVP Committee:

However due to pressure from the public to revive the case of reorganization of the States, the All India Congress Committee in 1948 at Jaipur constituted the JVP Committee. The JVP (Jawaharlal Nehru, Vallabhabhai Patel and Pattabhi Sitaramaiah) Committee recommended "to postpone the formation of new provinces for a few years, so that we might concentrate during this period on other matters of vital importance and not allow ourselves to be distracted by this question"

The JVP report contained a perceptive analysis of the situation. Two of its sentences reflect the committee’s own difficulties as well as the dilemma racking India. “We feel that the present is not an opportune moment for the formation of new provinces.” Yet, the members also believed that “if public sentiment is insistent and overwhelming, we, as democrats, have to submit to it, but subject to certain limitations in regard to the good of India as a whole”. The supporters of linguistic provinces knew a half-open door when they saw one. They publicly welcomed the JVP report and continued to press their claim.

The foundation for the second significant happening of the century, and first one after the Independence of the country, was laid on 22nd December 1953 with Jawaharlal Nehru's announcement in the Parliament of the Constitution of the States Reorganization Commission.

The Resolution of the Government of India relating to the reorganization said that

"The language and culture of an area have an undoubted importance as they represent a pattern of living which is common in that area. In considering a reorganization of States, however , there are other important factors which have also to be borne in mind. The first essential consideration is the preservation and strengthening of the unity and security of India. Financial, economic and administrative considerations are almost equally important, not only from the point of view of each State, but for the whole nation".4

The four principles that the State Reorganization Commission followed are:

1) Preservation and strengthening of the unity and security of India;
2) Linguistic and cultural homegeneity;
3) Financial, economic and administrative considerations; and

4) Successful working of the national plan