Most Probable Questions for IAS Prelims 2020 –

Daily MCQs by ClearIAS.com (05-09-2019)

Qn 1) With reference to North-East Venture Fund (NEVF), recently seen in

the news, consider the following statements

1. It is the first dedicated venture capital fund for the North Eastern Region.
2. It aims to help female entrepreneurs in the region.
3. The investment under this scheme ranges from Rs. 25 lakh to Rs.10 crore per
venture.

Which among the above statements is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Ans: (c) 1 and 3 only

Learning Zone: North East Venture Fund (NEVF) is Set up by North Eastern
Development Finance Corporation Limited (NEDFi) in association with the Ministry of
Development of North Eastern Region (M-DoNER).

It is the first dedicated venture capital fund for the North Eastern Region.

The investment under this scheme ranges from Rs. 25 lakh to Rs.10 crore per venture,
which is long term in nature with an investment horizon of 4-5 years.

Why this question is important? It aims to contribute to the entrepreneurship

development of the NER and achieve attractive risk-adjusted returns through long term
capital appreciation by way of investments in privately negotiated equity/ equity-related
investments.
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Qn. 2) With reference to Surrogacy regulation bill, consider the following
statements

1. The bill aims to ban any form of surrogacy in India.

2. The bill aims to establish a National Surrogacy Board at the central level and
state surrogacy boards.

Which among the above statements is/are correct?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Ans: (b) 2 only

● Learning Zone: The Bill proposes to regulate surrogacy in India by establishing

a National Surrogacy Board at the central level and state surrogacy boards and
appropriate authorities in the state and Union Territories.
● The purpose of the Bill is to ensure effective regulation of surrogacy, prohibit
commercial surrogacy, and allow ethical surrogacy.
● While commercial surrogacy will be prohibited, including sale and purchase of
human embryos and gametes, ethical surrogacy for needy couples will be
allowed on fulfilment of stipulated conditions.
● It will also prevent exploitation of surrogate mothers and children born through
surrogacy.
Why this question is important? The Cabinet has approved the introduction of
Surrogacy (Regulation) Bill, 2019 that aims to prohibit commercial surrogacy in India.

Qn 3) With reference to Core Investment Companies (CICs), often seen in

the news, consider the following statements
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1. They are non-banking financial companies with an asset size of ₹100 crore and
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above.
 2. They are allowed to accept public funds.
3. It works under the regulation of RBI.

Which among the above statements is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Ans: (d) 1, 2 and 3

Learning Zone: Core Investment Companies (CICs) are specialized Non-Banking

Financial Companies (NBFCs).
● They have an asset size of Rs 100 crore and above.
● Their main business is the acquisition of shares and securities with certain
conditions.
● It holds no less than 90% of its nett assets in the form of investment in equity
shares, preference shares, bonds, debentures, debt or loans in group companies.
● Its investments in the equity shares (including instruments compulsorily
convertible into equity shares within a period not exceeding 10 years from the
date of issue) in group companies constitutes not less than 60% of its net assets
as mentioned in clause (iii) above.
● It does not trade in its investments in shares, bonds, debentures, debt or loans
in group companies except through block sale for the purpose of dilution or
disinvestment.
● It does not carry on any other financial activity referred to in RBI Act, 1934
except investment in bank deposits, money market instruments, government
securities, loans to and investments in debt issuances of group companies or
guarantees issued on behalf of group companies.
● It accepts public funds. Public funds are not the same as public deposits. Public
funds include public deposits, inter-corporate deposits, bank finance and all
funds received whether directly or indirectly from outside sources such as funds
raised by the issue of Commercial Papers, debentures etc.
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Why this question is important? The Reserve Bank has constituted a working group
that will review the regulatory and supervisory framework for core investment
companies.
The six-member working group is to be headed by Tapan Ray, non-executive chairman,
Central Bank of India and former secretary, Ministry of Corporate Affairs.

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