Important Daily Facts of the Day

SCO calls for multipolar world order as Iran joins grouping (GS Paper 2, International Relation)

Why in news?

• Recently, Shanghai Cooperation Organisation’s virtual summit was chaired by Indian Prime Minister.

 

Induction of Iran:

• The grouping’s decision to induct Iran as its ninth and latest member was one of a number of agreements signed at the summit.
• The SCO grouping now comprises China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan.

 

India’s stand:

• India, who hosted the summit for the first time, refused to join other members on paragraphs relating to China’s Belt and Road Initiative (BRI) in the joint statement, and stayed out of a joint statement on SCO Economic Development Strategy 2030, indicating a lack of consensus in the grouping.
• Indian PM also took sharp aim at Pakistan for cross-border terrorism, and at China for connectivity projects that do not respect sovereign boundaries.

 

Declarations:

• The agreements signed include

1.  the New Delhi Declaration, outlining areas of cooperation between SCO countries;
2. a joint statement on countering radicalisation; and
3. one on digital transformation, where India offered to share expertise on digital payment interfaces.

 

Sanctions on Russia & Iran:

• In a reference to sanctions on Russia and Iran, SCO members jointly criticised non-UN sanctions as “incompatible with the principles of international law”, which have a “negative impact” on other countries.
• SCO members also agreed to explore the use of “national currencies” for payments within the grouping, which would circumvent international dollar-based payments.

 

China’s address:

• Chinese President marked the 10-year anniversary of the BRI and mentioned his new Global Security Initiative (GSI), calling for “encouraging political settlement of international and regional hotspots, so as to forge a solid security shield in our region”.
• He called on SCO members “to make foreign policies independently” and to be “highly vigilant against external attempts to foment a new Cold War or camp-based confrontation in our region”. It has previously blamed the U.S. for “interference” and a “Cold War mentality”.

 

Delhi Declaration:

• The Delhi Declaration listed a number of global challenges, including new and emerging conflicts, turbulence in the markets, supply chain instability, climate change and the COVID-19 pandemic.
• SCO member States confirm their commitment to formation of a more representative, democratic, just and multipolar world order based on the universally recognized principles of international law, multilateralism, equal, joint, indivisible, comprehensive and sustainable security, cultural and civilizational diversity, mutually beneficial and equal cooperation of states with a central coordinating role of the UN.

 

Rechristened GIFT NIFTY

(GS Paper 3, Economy)

Why in new?

• Rechristened GIFT NIFTY, the popular Singapore Exchange (SGX) NIFTY started trading from GIFT City in Gujarat, executing over 30,000 trades in a single session.
• This is the first cross-border initiative in connecting India and Singapore’s capital markets.
• Though the SGX is expected to corner the bulk of the business initially, NSE International Exchange (NSE IX) expects to make inroads gradually.

What is the deal between SGX and NSE?

• According to a five-year contract between the two, business will largely be shared on a 50:50 basis. Initially, for the business generated by Singapore, SGX will get 75 per cent of the revenue, while NSE will get the remaining 25 per cent.
• For any business generated by the International Financial Service Centre (IFSC), NSE will keep 75 per cent of the business. Once a “threshold volume” is touched, sharing will be on a 50:50 basis for both the entities.
• As per this deal, NSE IX will not be able to enter into similar arrangements with any other exchange. This contract can be extended for an additional two years after the five-year period concludes.

 

What is GIFT NIFTY?

• This migration was first initiated by Prime Minister Narendra Modi in July 2022. However it was only in April 2023 that Singapore agreed to a full-scale switch of Nifty 3.
• On June 30, trading on SGX NIFTY ceased in Singapore and the entire trading volume and liquidity fully switched to GIFT IFSC. Therefore, it was rechristened GIFT Nifty.
• Currently, four products are being offered under the umbrella brand of GIFT Nifty — GIFT Nifty 50, GIFT Nifty Bank, GIFT Nifty Financial Services and GIFT Nifty IT derivatives contract.