⚡ Quick Revision — Corporate Governance, Misc & Key Curves
🏢 Corporate Governance
graph TD
CA[Companies Act 2013<br>Min of Corporate Affairs] --> NCLT[NCLT<br>Company law + IBC + Mergers]
CA --> NFRA[NFRA<br>Regulates auditors]
CA --> IEPFA[IEPFA<br>Investor protection<br>Unclaimed dividends]
CA --> SFIO[SFIO<br>Corporate fraud]
CA --> CSR["CSR: 2% of avg 3-yr net profit<br>NW ≥₹500 cr OR Turnover ≥₹1000 cr<br>OR Profit ≥₹5 cr"]
CA --> CCI["CCI<br>Competition Act 2002<br>Replaced MRTP 1969"]
ESG & Reporting
| |
|---|
| ESG | Environmental, Social, Governance framework |
| BRSR | Business Responsibility & Sustainability Report. Mandatory by SEBI for top 1000 listed companies. |
| ISAR | International Standards of Accounting & Reporting. UN forum under UNCTAD. India secured seat 2025-27. |
💼 Financial Market — Key Terms
| Term | Meaning |
|---|
| Frontrunning | Broker trades on advance info about upcoming large order. Illegal (SEBI). |
| Insider Trading | Using non-public material info to trade. Illegal (SEBI). |
| Reverse Flipping | Indian startup that shifted HQ abroad moves back to India. |
| SIF | Specialized Investment Fund. Min ₹10 lakh. Between MF & PMS. |
| SRO for MFs | AMFI |
| Securities Markets Code Bill 2025 | Merges SCRA 1956 + SEBI Act 1992 + Depositories Act 1996. SEBI members: 9 → 11. |
📈 Financial Secrecy Index 2025
- By Tax Justice Network
- Ranking: #1 USA > #2 Switzerland > #3 Singapore > #4 Hong Kong
📐 Key Economic Curves
graph LR
CURVES[Economic Curves] --> PC[Phillips<br>Inflation ↔ Unemployment<br>INVERSE]
CURVES --> PR[Preston<br>Income ↔ Life Expectancy<br>POSITIVE]
CURVES --> LA[Laffer<br>Tax Rate ↔ Tax Revenue<br>INVERTED-U]
CURVES --> LO[Lorenz<br>Income Inequality<br>GRAPHICAL]
CURVES --> KU[Kuznets<br>Income ↔ Inequality<br>INVERTED-U]
CURVES --> EK[Env Kuznets<br>Income ↔ Env Degradation<br>INVERTED-U]
CURVES --> BE[Beveridge<br>Unemployment ↔ Job Vacancies<br>INVERSE]
| Curve | Relationship |
|---|
| Phillips | ↑ Inflation = ↓ Unemployment (Stagflation = exception) |
| Preston | ↑ Per capita income = ↑ Life expectancy |
| Laffer | Beyond optimal tax rate → ↓ Revenue (discourages activity) |
| Lorenz | Diagonal = perfect equality. Further from diagonal = more inequality |
| Kuznets | Inequality first ↑ then ↓ as development progresses |
| Environmental Kuznets | Env degradation first ↑ then ↓ as income rises |
| Beveridge | ↑ Job vacancies = ↓ Unemployment |
📊 Fiscal & Economic Terms — Last-Minute
| Term | Meaning |
|---|
| Tax Buoyancy | % Δ tax revenue / % Δ GDP (total responsiveness) |
| Tax Elasticity | % Δ tax revenue / % Δ tax rate |
| Tax Expenditure | Revenue foregone via exemptions/deductions |
| Pigouvian Tax | On negative externalities (pollution, tobacco) |
| Tobin Tax | On financial transactions (curb speculation) |
| Fiscal Drag | Inflation pushes into higher bracket — bracket creep |
| Automatic Stabiliser | Progressive taxes + unemployment benefits — reduce fluctuations without new policy |
| Ricardian Equivalence | Debt = future taxes → rational people save → no demand change |
| Seigniorage | Profit from issuing currency (face value − production cost) |
| Switch Auction | Govt exchanges existing G-Sec for new one (manage maturity profile) |
| ICR | Interest Coverage Ratio = Earnings / Interest. <1 = stress |
🏛️ Other Key Bodies (Recap)
| Body | Function |
|---|
| FSIB | Selects MD/CEO of PSBs. Replaced Banks Board Bureau (2022). |
| FSDC | Financial Stability & Development Council. Under FM (not RBI). |
| CCI | Anti-profiteering under GST + competition regulation |
| NFRA | Regulates auditors (under Companies Act 2013) |
| IBBI | Statutory body under IBC for insolvency ecosystem |
| PFRDA | Pension regulator (except EPFO) |
🏆 Nobel Prize Economics 2025
- Joel Mokyr, Philippe Aghion, Peter Howitt
- For research on technological innovation driving sustained economic growth and creative destruction in long-term prosperity
Last-Minute Recall Strip:
CSR 2% of 3-yr avg profit | NW ≥₹500 cr | BRSR top 1000 by SEBI | Phillips = Inflation vs Unemployment | Laffer = Tax rate vs Revenue | Kuznets = Inequality ↑ then ↓ | Beveridge = Vacancies vs Unemployment | Pigouvian = externalities | Tobin = financial txn | Fiscal Drag = bracket creep | Ricardian = debt = future tax | Seigniorage = currency profit | ICR <1 = stress | FSI #1 USA | ISAR = UNCTAD | Securities Code Bill = 3 Acts merged | SEBI → 11 members | Nobel 2025 = creative destruction
