News 1 :Iran Hits Israel, U.S. Bases After Killing of Khamenei; Indians Among Injured
Preliminary Facts (For Mains Answer Introduction)
- Unprecedented Escalation: The conflict between the U.S.-Israel alliance and Iran entered its second day on Sunday, following the killing of Iran’s Supreme Leader Ayatollah Ali Khamenei and other senior leaders in U.S. and Israeli strikes. Iran has vowed revenge and traded strikes with Israel, while also targeting U.S. bases in Gulf Arab states .
- Casualties and Damage:
- Iran: Over 200 people killed since the start of strikes.
- Israel: 11 killed, including 9 in a synagogue strike in Beit Shemesh.
- U.S.: Three service members killed, five seriously wounded.
- UAE: Three deaths (Pakistani, Nepalese, Bangladeshi) and 58 injured (including Indians) from Iranian drone attacks .
- Indian Casualties: Indians were among the injured in the UAE. An oil tanker (Skylight) with 15 Indian crew members was struck off the Oman coast; four crew injured. All crew evacuated .
- Stranded Indians:
- Eight Indians (including a family of three from Kerala) stranded in Karachi after their aircraft was diverted .
- 84 students and 4 faculty from Indira University, Pune, stuck in Dubai due to airspace closure .
- Olympic medalist P.V. Sindhu reported an explosion near Dubai Airport and was moved to safety .
- India’s Response: MEA urged foreign nationals who could not leave India to contact FRROs for visa extension. Indian missions in the region are in touch with nationals and have issued advisories .
- Global Impact: Flights across West Asia disrupted; oil tanker attacked off Oman; Strait of Hormuz remains a flashpoint .
Prelims 360
Foreigners Regional Registration Office (FRRO)
The FRRO is the field-level immigration authority in India responsible for regulating the stay of foreign nationals in the country.
It functions under the Bureau of Immigration, which comes under the Ministry of Home Affairs.
📌 Purpose of FRRO
FRRO deals with:
- Registration of foreign nationals staying in India
- Visa extension
- Visa conversion
- Exit permits
- Residential permits
- Overstay regularisation
- OCI-related services (in coordination with authorities)
News 2 :Will Leverage Tech to Crack Down on Market Manipulators, Says SEBI Chief
Preliminary Facts (For Mains Answer Introduction)
- SEBI’s Tech-Driven Approach: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey stated that the regulator will enhance surveillance and enforcement on market manipulators and cyberfraudsters through technology, while using artificial intelligence (AI) to widen the reach of investor awareness programmes .
- Key Initiatives Rolled Out: Since assuming charge, Pandey has overseen:
- 58 initiatives to ease business processes in the capital market
- 9 initiatives to make the market investor-centric and educate investors
- 4 changes to strengthen the framework regulating market intermediaries
- 13 measures to develop the capital market
- 6 regulations to cool down speculation and stabilise the equity derivatives segment
- SEBI Check Tool: A tool integrated within the UPI interface that allows investors to identify registered intermediaries before making a payment, aimed at reining in fraudulent brokers and traders promising unreal gains .
- AI Investor Education: SEBI has partnered with Bengaluru-based AI company SARVAM for a pilot campaign reaching 3,85,000 people through AI-generated calls in multiple languages to explain the SEBI Check tool .
- Warning Against Financial Influencers: Pandey warned investors against “financial influencers” conning investors through WhatsApp groups, promising astronomical returns on options trading .
- Market Stability: Amid a correcting market and sustained selling by foreign investors, Pandey emphasized that SEBI’s role is to ensure “no major instabilities” and that “market stability is inherent.” He urged against “scaremongering” and “panic” .
- Agri-Commodities and Corporate Bonds: SEBI is studying the rejuvenation of the agri-commodities market (based on two working group reports) and focusing on deepening the corporate bonds market .
Prelims 360
SEBI to Leverage Technology Against Market Manipulation
📊 AI and real-time monitoring:
SEBI is increasingly using artificial intelligence (AI) and advanced technology tools to monitor trading activity and curb various forms of market misconduct — including insider trading, unregistered investment advisories, and misleading financial promotions by social media influencers — in real time
Insider Trading
Insider trading means buying or selling securities using Unpublished Price Sensitive Information (UPSI) that is not available to the general public.
It gives an unfair advantage to those who possess confidential information.
What is the SEBI Check Tool?
It is an online verification platform that allows investors to:
- Verify whether an entity is registered with SEBI
- Check details of:
- Investment Advisers (IAs)
- Research Analysts (RAs)
- Stock Brokers
- Mutual Fund Distributors
- Portfolio Managers
- Alternative Investment Funds (AIFs)
- Other SEBI-regulated intermediaries
🎯 Why Was It Launched?
- To curb fraudulent investment schemes
- To prevent misuse of SEBI’s name/logo
- To combat:
- Unregistered investment advisory services
- Fake trading apps
- Social media “stock tips” scams
- Ponzi schemes
🛠️ How It Works (Conceptually for Prelims)
An investor can search using:
- Name of the intermediary
- Registration number
- PAN or other identifying details
The tool displays:
- Registration status (Active / Suspended / Cancelled)
- Validity
- Contact details
- Category of registration
📚 Prelims-Oriented Facts
| Feature | Relevance |
| SEBI is a statutory body | Established under SEBI Act, 1992 |
| SEBI is under Ministry of Finance | Yes |
| Protects investors’ interests | Core mandate |
| Regulates securities market | Stock exchanges, intermediaries, etc. |
🏛️ About SEBI (Quick Revision)
- Established: 1988 (statutory powers in 1992)
- Headquarters: Mumbai
- Powers: Quasi-legislative, quasi-executive, quasi-judicial
News 3: GST Collection Increases by 8.1% to Over ₹1.83 Lakh Crore
Preliminary Facts (For Mains Answer Introduction)
- Strong Growth: Gross Goods and Services Tax (GST) collection increased by 8.1% year-on-year to over ₹1.83 lakh crore in February 2026, driven by higher growth in revenues from imports and improved domestic sales .
- Components:
- Gross Domestic Revenue: ₹1.36 lakh crore (up 5.3%)
- Gross Import Revenue: ₹47,837 crore (up 17.2%)
- Total Refunds: ₹22,595 crore (up 10.2%)
- Net GST Collection: ₹1.61 lakh crore (up 7.9%)
- Net Cess Revenue: ₹5,063 crore (down from ₹13,481 crore in February 2025)
- Context of Rate Cuts: In September 2025, the GST Council slashed rates on about 375 items and merged the four tax slabs (5%, 12%, 18%, 28%) into two slabs of 5% and 18%, with a highest 40% slab for ultra-luxury goods and tobacco products .
- Post-Rate Cut Trend: Collections initially dipped to ₹1.7 lakh crore in November, but recovered to ₹1.74 lakh crore in December and ₹1.93 lakh crore in January, before settling at ₹1.83 lakh crore in February .
- Expert View: Deloitte’s M.S. Mani noted that the figures reflect a “consumption uptick that has more than compensated for the rate reductions.” However, he flagged concern over negative/single-digit growth in major States like Tamil Nadu (-6%), Madhya Pradesh (-8%), Rajasthan (-1%), West Bengal (1%), Haryana (2%), Uttar Pradesh (5%), and Maharashtra (6%) .
Prelims 360
Constitutional Background of GST
GST was introduced by the Constitution (One Hundred and First Amendment) Act.
It:
- Inserted Article 246A → Special power to Centre & States to levy GST
- Inserted Article 269A → IGST on inter-state trade
- Inserted Article 279A → GST Council
👉 It created a dual GST model in India.
2️⃣ GST Council
A constitutional body under Article 279A called the
Goods and Services Tax Council.
Role: Recommends GST rates, exemptions, rules.
Voting:
- Centre = 1/3 weight
- States = 2/3 weight
- 75% majority required
SC (2022): Recommendations are not binding, but persuasive.
3️⃣ Types of GST
- CGST – Centre (intra-state)
- SGST – State (intra-state)
- IGST – Inter-state & imports
- UTGST – UTs without legislature
⚠ Imports are treated as inter-state supply.
4️⃣ Objectives of GST
- Remove cascading (tax on tax)
- One Nation One Tax
- Improve compliance
- Formalise economy
- Increase revenue efficiency
5️⃣ GST Rate Structure
India follows a multi-rate system:
0%, 5%, 12%, 18%, 28%
- Compensation cess on luxury/sin goods.
6️⃣ GST Compensation to States
- Guaranteed 14% revenue growth (base year 2015-16)
- Valid for 5 years (2017-2022)
- Funded by Compensation Cess
7️⃣ Key Terms
Input Tax Credit (ITC): Credit for tax paid on inputs.
Reverse Charge Mechanism (RCM): Buyer pays tax.
E-Way Bill: Required for movement of goods above threshold.
Composition Scheme: Lower rate for small businesses.
EDITORIAL : Sixteenth Finance Commission — Misses and Concerns
Preliminary Facts (For Mains Answer Introduction)
- Context of the Article: Written by Dr. C. Rangarajan, former RBI Governor and Chairman of the Twelfth Finance Commission, this piece provides a critical expert analysis of the recommendations of the Sixteenth Finance Commission.
- Vertical Share Retained: The Commission retained the States’ share in the divisible pool of central taxes at 41% , imparting a sense of “semi-permanence” to this figure first recommended by the Fourteenth Finance Commission.
- Cesses and Surcharges Issue: The Commission noted the Centre’s concern about fiscal space but did not constitutionally address the issue of rising non-shareable cesses and surcharges. Instead, it proposed a “grand bargain” for their merger, which the author finds insufficient.
- Discontinuation of Grants: The Sixteenth Finance Commission discontinued revenue deficit grants and did not recommend any State-specific or sector-specific grants (previously recommended by the Fifteenth FC), effectively lowering the total transfer ratio compared to its predecessor.
- New Horizontal Criteria: The Commission introduced a new ‘contribution’ criterion (using the square root of GSDP) to reward efficiency, while dropping the ‘tax effort’ criterion. The author critiques this as inconsistent with the Commission’s own narrative on fiscal efficiency.
- Winners and Losers: The analysis identifies major States like Uttar Pradesh, Bihar, West Bengal, and Madhya Pradesh as “losers” under the new devolution formula, while gains for richer states have not been uniform. The author argues these losses could have been mitigated through Article 275 grants, which were discontinued.
Prelims 360
Finance Commission – UPSC Prelims Notes
The Finance Commission is a constitutional body that recommends how financial resources are distributed between the Centre and States.
📜 Constitutional Basis
Established under:
👉 Article 280 of the Indian Constitution
It is appointed by the President of India.
🎯 Main Functions
- Recommend distribution of:
- Taxes between Centre and States (Vertical Devolution)
- Among States (Horizontal Devolution)
- Recommend:
- Grants-in-aid to States (Article 275)
- Measures to improve State finances
- Augmentation of State Consolidated Fund for Panchayats & Municipalities
👥 Composition
- 1 Chairperson
- 4 Other Members
Appointed by the President.
Qualifications are decided by Parliament.
⏳ Tenure
- Constituted every 5 years
- Or earlier if needed
📊 Latest Finance Commission (Important for Prelims)
The Sixteenth Finance Commission has been constituted for the period 2026–2031.
Chairperson: Arvind Panagariya
📌 Key Concepts
1️⃣ Vertical Devolution
Share of divisible pool between Centre and States.
2️⃣ Horizontal Devolution
Distribution among States based on criteria like:
- Income distance
- Population
- Area
- Forest & ecology
- Demographic performance
- Tax effort
💰 Divisible Pool
- All central taxes except:
- Surcharge
- Cess
These are not shared with States.
⚖️ Difference: Finance Commission vs GST Council
| Finance Commission | GST Council |
| Constitutional (Art 280) | Constitutional (Art 279A) |
| Recommends tax sharing | Recommends GST rates |
| Appointed every 5 years | Permanent body |
🧠 Prelims Traps
❌ It is not a permanent body
❌ It does not decide tax rates
❌ Its recommendations are advisory (not binding)
Mapping the Middle East (Conceptual Layout)
1. Key Water Bodies & Chokepoints (Must-Know)
The geography of the Middle East is defined by its maritime “bottlenecks.” These are frequently asked in Prelims:
- Strait of Hormuz: Connects the Persian Gulf and the Gulf of Oman. It is the world’s most important oil artery.
- Bab-el-Mandeb: The “Gate of Tears.” Connects the Red Sea and the Gulf of Aden.
- Suez Canal: Man-made waterway in Egypt connecting the Mediterranean Sea to the Red Sea.
- Turkish Straits: Comprised of the Bosporus (Black Sea to Sea of Marmara) and Dardanelles (Sea of Marmara to Aegean/Med Sea).
2. Major Rivers & Lakes
- Tigris & Euphrates: Both originate in Turkey and flow through Syria and Iraq into the Persian Gulf (forming the Shatt al-Arab).
- Jordan River: Forms the border between Israel/West Bank and Jordan; flows into the Dead Sea.
- Dead Sea: Landlocked salt lake; the lowest point on Earth’s land surface.
Persian Gulf
The Persian Gulf is a shallow marginal sea of the Indian Ocean, located between West Asia (Middle East) and Iran. It is one of the most strategically important water bodies in the world due to its vast oil and gas reserves.
🌍 Countries Bordering the Persian Gulf
There are 8 countries bordering the Persian Gulf:
🇮🇷 1. Iran
- Northern coast (longest coastline along the Gulf)
🇮🇶 2. Iraq
- Very short coastline near the Shatt al-Arab river
🇰🇼 3. Kuwait
🇸🇦 4. Saudi Arabia
- Long western coastline along the Gulf
🇧🇭 5. Bahrain
- Island country within the Gulf
🇶🇦 6. Qatar
- Peninsula extending into the Gulf
🇴🇲 7. Oman
- Borders the Gulf through the Musandam Peninsula
🇦🇪 8. United Arab Emirates
🌊 Important Geographic Points
- Connected to the Arabian Sea via the Strait of Hormuz
- Major oil transit route (around 20% of global oil trade passes through Hormuz)
- Important ports: Bandar Abbas (Iran), Basra (Iraq), Dubai (UAE)
IRAN MAP
The seven land neighbors clearly labeled with national flags.
- Strategic water bodies: The Caspian Sea, Persian Gulf, Gulf of Oman, and the critical Strait of Hormuz.
- UPSC Key Locations: The Chabahar Port (highlighting India’s strategic link), the shrinking Lake Urmia, and the Zagros Mountains.
- Key transport corridors: Visually displaying the connections to Russia, Central Asia, and Afghanistan via the International North-South Transport Corridor (INSTC) and Chabahar.
This single infographic provides a comprehensive visual reference for your mapping and international relations study.
