Why stampedes take place?  

 Why in the News?

• On Tuesday, July 2, a stampede during a religious gathering in Uttar Pradesh’s Hathras district resulted in the tragic deaths of at least 121 individuals, predominantly women.

What is a Stampede?

• A stampede is a sudden mass movement of a crowd leading to injuries and fatalities.
• Triggered by panic, perceived danger, or the pursuit of something gratifying.
• Disrupts orderly crowd movement.

Why do Stampedes Kill?

• Primary Cause: Traumatic asphyxia due to external compression of the chest or abdomen.
• Other Causes: Myocardial infarction, direct crushing injuries, head injuries, and neck compression.

How Does Human Psychology Lead to Stampedes?

• Panic and Lack of Cooperation: Panic disrupts cooperative behavior, causing chaotic actions like pushing and shoving.
• Positive Wish-Fulfillment Beliefs: Collective beliefs can mobilize large groups, compromising individual safety.

How Does the Physical Organization of Spaces Contribute to Stampedes?

• Factors Contributing to Risks: Poor lighting, inadequate crowd flow management, structural collapses, blocked exits, and poorly designed hardware.
• Crowd Density: High density leads to prolonged evacuation times and increased panic.

How to Better Prevent or Mitigate Stampedes?

• Planning and Design: Ensure adequate exit points, improve crowd flow management, use real-time crowd monitoring technologies.
• Communication and Coordination: Effective communication between organizers and attendees for managing crowd movements.

Notable Deadly Stampedes and Their Causes:

• Moscow, Russia (1896): Rumors of souvenir shortages led to a deadly surge.
• Allahabad, India (1954): Lack of crowd control and barriers led to a surge at the Kumbh Mela.
• Lima, Peru (1963): Tear gas during a football match triggered panic in enclosed spaces.
• Wai, India (2005): Slippery steps during a pilgrimage resulted in a tragic stampede.

Way Forward:

• Crowd Monitoring Systems: Use CCTV cameras, crowd density sensors, and real-time monitoring software.
• Communication Systems: Establish robust communication networks; use public address systems and mobile alerts.
• Emergency Response Plans: Develop and rehearse comprehensive emergency response plans, including evacuation procedures and medical assistance points.

Factory accidents, a pointer to rusty inspection reform 

 Incident Overview

• In May 2024, an explosion at a reactor in a chemical factory in the Dombivli MIDC area caused fatalities and injuries among workers and local residents.

Present Scenario in India

• Frequent fatal industrial accidents due to non-compliance with safety regulations, inadequate inspections, and compromised safety practices.
• Recent incidents like the Dombivli MIDC chemical factory explosion highlight the recurring nature of these accidents.
• Significant disparity between the number of registered factories and inspection rates in states like Maharashtra, Gujarat, and Tamil Nadu.

Causes of Fatal Industrial Accidents

1. Non-compliance with Safety Regulations:
   • Improper maintenance of machinery.
   • Lack of safety equipment.
   • Inadequate training in handling hazardous materials.
2. Inadequate Maintenance and Inspection Practices:
   • Poor maintenance of industrial equipment and facilities.
   • Insufficient or irregular inspections leading to undetected hazards.
3. Human Error and Unsafe Practices:
   • Negligence, fatigue, or lack of training.
   • Unsafe work practices, such as shortcuts to save time or reduce costs.

Need for Reforms

1. Strengthening Regulatory Framework:
   • Update and strengthen safety regulations to align with international standards.
   • Close loopholes and ambiguities in existing laws.
2. Improving Inspection and Enforcement:
   • Enhance the capacity and effectiveness of regulatory bodies.
   • Increase the number of qualified inspectors and improve their training.
   • Implement advanced inspection techniques like digital monitoring and real-time compliance checks.
3. Promoting Transparency and Accountability:
   • Establish transparent mechanisms for reporting and investigating industrial accidents.
   • Identify root causes to prevent recurrence.

Solutions (Way Forward)

1. Enhanced Regulatory Oversight:
   • Strengthen and strictly enforce safety regulations and standards across all industries.
   • Regularly update regulations to align with technological advancements and international best practices.
2. Improving Inspection and Compliance:
   • Increase the number of qualified inspectors and improve their training.
   • Implement regular and surprise inspections using modern technologies like digital monitoring and remote sensing.
3. Promoting Safety Culture:
   • Encourage a proactive safety culture within industries.
   • Implement training and awareness programs.
   • Provide incentives for compliance with safety standards.

What is the significance of Industrial Corridors in India? Identifying industrial corridors, explain their main characteristics. (2018)

Why has SEBI accused Hindenburg of breaking Indian law? 

 Incident Overview

• Hindenburg Research received a SEBI show cause notice for short-selling Adani Enterprises Ltd stock before and after their report accusing Adani of fraud.

What is the Hindenburg Report on Adani?

• On January 24, 2023, Hindenburg Research accused the Adani Group of “brazen stock manipulation and accounting fraud scheme over the course of decades.”
• The report led to a significant drop in Adani companies’ shares and the cancellation of Adani Enterprises Ltd’s Rs 20,000-crore follow-on Public Offer (FPO).
• Adani Group denied the allegations, calling the report a “calculated attack on India.”

What is SEBI’s Show Cause Notice About?

• Hindenburg received a show-cause notice from SEBI on June 27, 2024.
• SEBI alleged that Hindenburg colluded with certain entities to use non-public information to short-sell Adani Enterprises Ltd (AEL) stock before and after releasing its report, making profits.
• The notice named Hindenburg, its founder Nathan Anderson, investor Mark Kingdon, and related entities, accusing them of sharing the report draft and building short positions in AEL futures.

How has Hindenburg Responded to the Show Cause Notice?

• Hindenburg dismissed the notice as an attempt to silence those exposing corruption.
• They stated their investment stance was legal and disclosed, criticizing SEBI for targeting them instead of investigating the Adani Group’s alleged malpractices.
• Accused SEBI of pressuring brokers to close short positions in Adani stocks to protect the stock prices.

Where Does Kotak Come Into This Picture?

• Involvement of Kotak: SEBI’s notice did not name Kotak Bank, which Hindenburg claims created the offshore fund structure used for shorting Adani stocks.
• Response: Kotak Mahindra Bank stated that Hindenburg has never been a client and that their KYC procedures were followed with regard to clients, with investments made by Kingdon as a principal.

How Much Profit Did Hindenburg Earn by Short Selling Adani Stocks?

• Revenue: Hindenburg earned approximately $4.1 million in gross revenue through gains related to Adani shorts from its investor relationship.
• Own Short Position: Hindenburg made about $31,000 from their short of Adani US bonds.
• Net Profit: After legal and research expenses, Hindenburg indicated they might only slightly come out ahead of break-even on their Adani short.

Way Forward

1. Conduct Investigation:
   • SEBI should initiate an independent, comprehensive investigation into the allegations against both Adani Group and Hindenburg Research.
   • Ensure impartiality and transparency by involving a neutral third party.
2. Policy Review:
   • SEBI could review and update regulations on short-selling and market manipulation.
   • Introduce stricter disclosure requirements for short sellers.
   • Enhance monitoring of market activities to prevent similar incidents in the future.

The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.( 2013)

LIBERALISED REMITTANCES SCHEME (LRS)

 Although credit card purchases made abroad are currently exempt from the liberalized remittance program cap, this could soon change. The government is reportedly considering placing credit card spending under the LRS, according to a recent media article.

Context:

For those who are unaware, the finance ministry lowered the LRS limit for credit card spending in May 2023. On June 28, it was revealed, meanwhile, that credit card purchases made abroad will be suspended to provide banks time to simplify their necessary IT infrastructure.

About LIBERALISED REMITTANCES SCHEME (LRS)

• All residents are permitted to freely transmit up to $2,50,000 every financial year overseas for any permitted current or capital account transaction, or a combination of both, under the RBI’s Liberalized Remittance Scheme (LRS).
• The February 4, 2004, launch of this program had a $25,000 cap. Later, the LRS limit was gradually changed to reflect the macro and microeconomic environment.
• If the remitter is a minor, the minor’s natural guardian must countersign the LRS declaration form. The Scheme is not open to corporations, trusts, HUFs, partnership firms, etc.
• Any foreign currency that is fully convertible may be used for the remittances.Under LRS, a Permanent Account Number (PAN) is required for every transaction.
• The government may require credit card users to pay 20 percent tax collection at source (TCS) if credit card spending is included in the LRS.
• The amount that the seller collects from the buyer at the time of sale in order to deposit it with the tax authorities is known as the “tax collected at source.”
• In Budget 2023, the TCS on overseas remittances under the LRS was increased from the previous rate of 5% to 20%. This covered sending money abroad, traveling abroad, and making other transfers.
• With the implementation of this new tax rate on October 1, 2023, the ₹7 lakh threshold for initiating TCS on LRS was eliminated.
• However, these adjustments do not apply to costs associated with education or healthcare.