PATHFINDER EDUCATION SERVICES

Pathfinder GK Supplement
August 2010 – week 1 (Part-2)

8/9/2010

This document contains a summary of all important events that happened during the 1st week of August
2010.

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 Economy

PFRDA to restructure NPS

The Pension Fund Regulatory and Development Authority (PFRDA) has decided to restructure the New
Pension System (NPS), which was launched 15 months ago, due to the poor response for the scheme
among employees of private firms and the unorganised sector and its weak incentive structure for fund
managers to push the product.

The regulator has set up a committee headed by G.N.Bajpai, former chairman of the Securities
Exchange Board of India (SEBI) and the Life Insurance Corporation (LIC) to suggest ways to improve
the reach of NPS in its intentions.

National Pension System (NPS) is an initiative of Pension Fund Regulatory and Development Authority
(PFRDA), the apex body established by Government of India to regulate and develop the pension sector
in India. NPS has been extended to all citizens of India with effect from 1st May 2009. The National
Pension system aims to collect contributions from individuals employed in both the government and the
private sector through the existing network of banks, post offices etc. The contribution will amount to 10
% of the salary. In case of the government employees, the Government shall also contribute an equal
amount to the account of each employee .This account will remain same even if the employed individual
changes employment. The system is mandatory for new Government employees except the armed
forces.

BSE joins hands with OIC to educate about equity options.

The Bombay Stock Exchange (BSE) has joined hands with the US-based, Options Industry Council
(OIC) to educate the public about equity options.

The OIC is an industry co-operative funded by BATS Options, Boston Options Exchange, Chicago
Board Options Exchange, International Securities Exchange, Nasdaq-OMX PHLX, Nasdaq Options
Market, NYSE Amex Options, NYSE Arca Options and The Options Clearing Corporation.

OIC was formed in 1992 to educate investors and their financial advisors about the benefits and risks of
exchange-traded equity options. BSE and OIC will work together on educational offerings aimed at
domestic investors – such as sharing online content, case-studies, research and white papers –
promoting responsible use of options.

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What are options and futures?

Futures and options are the two most common derivative instruments. Derivative instruments are those
financial instruments whose value is derived from some other asset. The other asset could be a
share/stock or gold or even currency. Thus the value of a derivative is dependent upon the value of the
asset on which its value is derived.

A 'Future' is a contract to buy or sell an asset for a specific price at a pre-determined time. If you buy a
futures contract, it means that you promise to pay the price of the asset at a specified time. If you sell a
future, you effectively make a promise to transfer the asset to the buyer of the future at a specified price
at a particular time.

Options contracts are instruments that give the holder of the instrument the right to buy or sell the
underlying asset at a predetermined price.

International News

Malaysia plans new visa system for Indian, Chinese tourists

Malaysia is planning to introduce a Visa Facilitation System (VFS) for tourists from India and China. This
follows a decision to revoke the Visa on Arrival (VOA) scheme for visitors to Malaysia from several
countries.

The reason cited by the authorities, including Prime Minister Najib Tun Razak, was that thousands among
those who arrived from India under the VOA scheme later went “missing”. The VFS “pilot project,” to be
implemented by commissioning travel agencies with branches in select countries, would be an
“alternative” to the VOA scheme, according to Malaysian Tourism Minister Ng Yen Yen.

India, Switzerland conclude talks to revise tax treaty

The government of India has concluded the renegotiation for widening the scope of its tax treaty with
Switzerland to access information on Swiss bank accounts, a big step towards tracing Indian money
stashed away overseas. The tax treaty has been amended on the lines of the OECD Model Tax
Convention, which means it will not provide for roving enquiries, or fishing expeditions as they are
commonly called.
The new treaty will be notified by India immediately after it is signed, but the Swiss authorities will be able
to put the agreement into effect only after it is ratified by their Parliament.

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 General News

Centre appoints members to Law Commission

The Centre has appointed two full-time and seven part-time members to the 19th Law Commission of
India, which was reconstituted in September 2009.

Retired Supreme Court Judge P.V. Reddy was appointed Chairman of the Commission in March this
year.

Full-time Members are: Justice Shivkumar Sharma, retired judge of the Rajasthan High Court and Amarjit
Singh Chandhiok, former Additional Solicitor General of India. Part-time Members are: Professor Ranbir
Singh, Vice Chancellor, National Law School, Delhi; Dr.Shashikala Gurpur, Principal, Symbiosis Law
School, Pune; Professor M. Afzal Wani, University School of Law and Legal Studies, Guru Gobind Singh
Indraprastha University, Delhi and four senior advocates — B.V. Acharya of Bangalore; R.
Venkataramani and A. Mariarputham (Supreme Court advocates) and Achutan.

India Develops 22 Wheat Varieties Resistant of UG99 Disease

India, the world's second biggest wheat producer, has developed 22 wheat varieties, which are
resistant to the deadly Ug99 fungal disease.

Of 22 wheat varieties, some of the varieties such as DBW 17, PBW 550, and Lok 1 are being cultivated in
wheat-growing states in India. According to sources at present, there is no threat to India as many of the
22 wheat varieties resistant to Ug99 are already under cultivation in several parts of the country
especially in Punjab and Haryana.

At present, Ug99 disease is spreading across Africa, Asia and the Middle East, which is a cause of major
concern due to large number of people being dependent on wheat for sustenance. India is a member of
the U.S.-based Borlaug Global Rust Initiative to combat Ug99 disease globally.

Ug99 is a fungal disease that affects wheat. It originated in Uganda in 1999 and belongs to a race of
black stem rust, which brings 100 per cent crop loss unlike other rusts that partially affect the yield. Since
the advent of green revolution, scientists have grown wheat varieties that are resistant to other stem
rusts, but Ug99 has developed into a virulent strain that takes advantage of almost any wheat variety.

West Bengal announces subsidies on diesel, power and kerosene

The West Bengal Government announced subsidies on diesel for agricultural purposes and on power
which will benefit consumers of up to 200 units of electricity monthly. It would benefit farmers who have to
depend largely on irrigation facilities and are already burdened by the rising costs of agricultural inputs.

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Nearly 78 lakh consumers of power across the State will benefit from subsidies that will cost the State
Government Rs. 120 crore annually. The subsidy on diesel for the agricultural sector will be one rupee
per litre; it would cost the State Rs. 30 crore annually.

Bihar declares 28 districts drought-hit

Bihar government declared 28 of its 38 districts “drought-afflicted due to irregular monsoon leading to a
huge rainfall deficit. The 28 districts declared drought-afflicted are Gaya, Jehanabad, Aurangabad, Arwal,
Nawada, Patna, Nalanda, Bhojpur, Buxar, Rohtas, Kaimur, Munger, Sheikhpura, Lakhisarai, Jamui,
Begusarai, Bhagalpur, Banka, Siwan, Muzzafarpur, Sitamarhi, Madhubani, Samastipur, Darbhanga,
Vaishali, Saran, East Champaran and Sheohared.

Maharashtra to levy “green tax” on old vehicles

With the intention to earn revenue earned towards pollution control measures, clean energy and
strengthening public infrastructure, the government of Maharashtra has decided to levy tax on
commercial vehicles which are over eight years old and private vehicles which are over 15 years. It is
found that there are over 6 lakh commercial and 15 lakh private vehicles in the specified age category,
around 21 lakh vehicles are set to pay the “green tax”.

According to the rate, two-wheelers would have to pay Rs.2,000 for the next five years. Autos, taxis and
tourist vehicles would pay five-yearly sums of Rs.750, Rs.1,250 and Rs.2,500 respectively.

115 killed in Leh flash floods

A cloudburst occurred in Leh town between 0030 and 0100 hours triggering torrential rain, mudslides and
flash floods. At least 115 people were killed and over 370 injured and many more are missing as flash
floods caused by torrential rain hit Leh town and adjoining villages in the small hours. Several buildings
were washed away. The BSNL exchange in Leh has been damaged; the Srinagar-Leh road is unusable
and the Leh airport has suspended all operations. In short, the area is virtually cut off from the rest of the
world.

Recruited and trained by the Indian Railways

The Indian Railway offers an opportunity to students for free Engineering training for four years and an
job if they pass an entrance Exam conducted by UPSC

 The selection of candidates for this programme is through the Union Public Service Commission.
It conducts the ‘Special Class Railway Apprentices' Examination' for the purpose. Those who
have passed the higher secondary examination with mathematics, and at least one subject
physics / chemistry can apply for the examination.

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  They should have secured first or second division in the higher secondary examination.
Candidates who are not awarded any specific division by the Board are eligible if their aggregate
score falls within the range of marks for first or second division.
 Graduates with mathematics and at least one of the subjects — physics or chemistry — as their
degree subjects may also apply. A diploma in engineering/ technology awarded by any State
Board of Technical Education is not acceptable as an entry qualification.
 Candidates, who have appeared at an examination the passing of which would render them
eligible to appear at the examination and those who intend to appear at such a qualifying
examination, are also eligible to apply for the Railway examination. The age of the applicant
should be 17-21 years

TOEFL announces scholarship winners

Educational Testing Service (ETS) has announced the winners of the 2010 TOEFL Scholarship
Programme in India. The scholarships allow seven Indian students to study at universities in USA, UK
and Canada. Three US$10,000 and four US$5,000 academic scholarships were awarded to students
who were accepted at a college or university in the U.K., U.S. and Canada. The scholarship winners were
from diverse regions of the country including Chennai, Mumbai, New Delhi, and Solapur. Of the seven
TOEFL scholarship winners, three will be attending universities in the U.K., three will be studying in the
U.S., and one will be pursuing academic study in Canada.

NIIT dropped for CAT 2010

After the first attempt to hold the Common Admission Test for admission into IIMs in computer -based
format was spoiled by the defect in machine last year, American firm Prometric has dropped NIIT as the
delivery partner and chosen two new service providers for the job. Prometric attributed the decision to
NIIT's inability to participate in the computer-based test this time.
The firm has now selected MeritTrac Services Pvt Ltd and its delivery partners Everonn Education Ltd for
the CAT 2010, which would be held in coming November.

Awards and Honours

KCHR, British Museum share award

The British Museum and the Thiruvananthapuram-based Kerala Council for Historical Research (KCHR)
have been jointly awarded this year's international partnership award by the British Academy.

The award, which carries a grant of £30,000, is aimed at promoting research collaboration between two
partner-institutions, one Indian and one British.

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The research proposal, titled “Indian Ocean Trade: the Archaeology of Technology,” by Roberta Tomber
of the British Museum and P.J. Cherian of the KCHR, was based on major archaeological research work
at the Pattanam site in central Kerala carried out over the last four seasons.

Leelavathi Award for Simon Lehna Singh

The International Mathematical Union for the Leelavathi Award selected well-known physicist-turned
author, journalist and television producer of Indian origin Simon Lehna Singh in recognition of his
outstanding contribution to public outreach in mathematics. Named after the great Indian mathematician
Bhaskaracharya, the award carries a cash prize of Rs.10 lakh and a citation. It will be presented at the
closing ceremony of the International Congress of Mathematicians (ICM), which will be held in Hyderabad
from August 19 to 27. Dr. Singh was selected by a committee of five eminent mathematicians, led by M.S.
Narasimhan of the Indian Institute of Science, Bangalore.

Lokamanya Tilak award

Delhi Chief Minister Sheila Dikshit was awarded this year's Lokmanya Tilak award, on the 90th death
anniversary of Bal Gangadhar Lokmanya Tilak. She was selected because of her vision for Delhi and her
ability to lead the city towards progress.

Sand Sculpture Championship

Renowned Indian sand artist Sudarsan Pattnaik has won the first prize at the 8th International Sand
Sculpture Championship here for his sculpture that showcased the effects of global warming. He has won
the prestigious award for the 5th time.

Sports

Shooter Tejaswini is now World Champ

The 30-year-old Rifle shooter from Kolhapur, Maharashtra, Tejaswini Sawant won the gold in the 50
metre rifle prone event at the World Championships held at Munich. Thus, she became the first Indian
woman to win a gold in a shooting event, and one of the very few Indian women to bag a gold in any
international sporting contest. Other shooters to have bagged golds in the same competition Olympic
champion Abhinav Bindra and trap shooter Manavjit Singh— at Zagreb, Croatia in 2006. Sawant was
given a tough fight by Poland’s Ewa Nowakowska, with both of them finally tying at 597/600, but Sawant
was declared winner on the basis of more ‘inner 10s’ (hitting the bulls eye more frequently).

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