Vajiram & Ravi provides Daily UPSC Prelims Current Affairs for 2 April 2025, tailored for aspirants. We cover all relevant news and events crucial for the exam, ensuring you stay updated & well-prepared.
Jipmer recently launched a support group for patients with Inflammatory Bowel Disease (IBD).
About Inflammatory Bowel Disease (IBD)
It is an umbrella term for a group of conditions that cause swelling and inflammation of the tissues in the digestive tract.
The most common types of IBD include:
Ulcerative colitis. This condition involves inflammation and sores, called ulcers, along the lining of the colon and rectum.
Crohn's disease:
In this type of IBD, the lining of the digestive tract is inflamed.
The condition often involves the deeper layers of the digestive tract.
Crohn's disease most commonly affects the small intestine.
However, it also can affect the large intestine and, uncommonly, the upper gastrointestinal tract.
Symptoms: Symptoms of both ulcerative colitis and Crohn's disease usually include belly pain, diarrhea, rectal bleeding, extreme tiredness, and weight loss.
Causes: The exact cause of IBD is unknown, but IBD is the result of a weakened immune system. Possible causes are:
The immune system responds incorrectly to environmental triggers, such as viruses or bacteria, which cause inflammation of the gastrointestinal tract.
There also appears to be a genetic component. Someone with a family history of IBD is more likely to develop this inappropriate immune response.
Treatment:
IBD is a chronic or long-term condition, but there are treatments available to ease symptoms and prevent flare-ups.
IBD treatment usually involves either medicines or surgery.
Inflammatory Bowel Disease FAQs
Q1. What does the term "Inflammatory Bowel Disease (IBD)" refer to?
Ans. A group of conditions causing inflammation in the digestive tract.
Q2. What part of the digestive tract does Crohn’s disease most commonly
Ans. Small intestine
Q3. Is Inflammatory Bowel Disease (IBD) curable?
Ans. IBD is a chronic or long-term condition, but there are treatments available to ease symptoms and prevent flare-ups.
The Supreme Court of India has directed Mahua Moitra, a Member of Parliament, to approach the Securities and Exchange Board of India (SEBI) regarding transparency concerns in Foreign Portfolio Investors (FPIs) and Alternative Investment Funds (AIFs).
About Foreign Portfolio Investment (FPI)
Foreign Portfolio Investment (FPI) refers to investments made by foreign entities in financial assets such as stocks, bonds, and other securities of a country.
It is distinct from Foreign Direct Investment (FDI), as it does not involve acquiring control over a business.
Key Characteristics of FPI
Passive investment: Investors do not participate in the management of the company.
Short-term focus: Aims for capital appreciation rather than long-term strategic interests.
Enhances market liquidity: Provides capital flow into financial markets, increasing efficiency and investment potential.
Sensitive to market sentiments: FPI is highly volatile, as investors can quickly withdraw funds in response to economic or political instability.
FPI Policy in India
A foreign investor can hold up to 10% of the total paid-up capital of an Indian company without being classified as an FDI.
If the holding exceeds 10%, it is reclassified as Foreign Direct Investment (FDI).
Regulated by SEBI, ensuring compliance with financial laws.
Foreign Institutional Investors (FIIs) vs. FPIs
Foreign Institutional Investors (FIIs) are a subset of FPIs and include large investment entities such as:
Mutual Funds
Pension Funds
Insurance Companies
Hedge Funds
Unlike individual FPI investors, FIIs typically adopt a more structured and strategic investment approach. However, all FIIs are considered FPIs, but not all FPIs are FIIs.
Key Differences Between FPI and FDI
Dimension
Foreign Direct Investment (FDI)
Foreign Portfolio Investment (FPI)
Control & involvement
Investors actively manage the business
No direct involvement in management
Investment type
Involves physical business investment (e.g., factories, offices)
Difficult to exit, as it requires selling business assets
Easier to withdraw, as securities are highly liquid
Duration
Long-term commitment
Short-term speculative investment
Capital flow
Flows into the primary market
Flows into the secondary market
Impact on Economy
Boosts economic growth, employment, and innovation
Primarily provides liquidity to financial markets
About Alternative Investment Funds (AIFs)
Alternative Investment Funds (AIFs) are privately pooled investment vehicles that gather capital from investors—both domestic and foreign—for specialized investments that differ from conventional investment instruments like mutual funds.
Key Features of AIFs
Regulated by SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012.
Can be structured as a company, trust, or Limited Liability Partnership (LLP).
Typically cater to high-net-worth individuals (HNIs) and institutional investors due to the high investment threshold.
Categories of AIFs
Category I AIFs (Investment in Priority Sectors)
Focus on sectors that are considered socially or economically beneficial by the government and regulators.
Includes venture capital funds, angel funds, SME funds, social venture funds, and infrastructure funds.
Category II AIFs (Diversified Investment Strategies)
Covers investment vehicles that do not fall under Category I or III.
These funds do not use leverage beyond operational needs.
Includes real estate funds, debt funds, private equity funds, and distressed asset funds.
Category III AIFs (High-Risk, High-Return Investments)
Employ complex trading strategies and leverage, including investments in listed or unlisted derivatives.
Examples include hedge funds and Private Investment in Public Equity (PIPE) funds.
Unlike Category I and II AIFs, which are close-ended with a minimum tenure of three years, Category III AIFs can be open-ended or close-ended.
Foreign Portfolio Investment (FPI) FAQs
Q1. What is Foreign Portfolio Investment (FPI)? Ans. FPI refers to investments in a country's financial assets, such as stocks, bonds, and mutual funds, by foreign investors.
Q2. How is FPI different from Foreign Direct Investment (FDI)? Ans. FPI is short-term and involves passive investment in financial markets, while FDI is long-term and involves ownership or control over business operations.
Q3. How is FPI regulated in India? Ans. The Securities and Exchange Board of India (SEBI) regulates FPI under the Foreign Portfolio Investment Regulations, 2019.
