MCQs - 2026-07

The Production Linked Incentive (PLI) Scheme, launched by the Indian government, offers incentives to manufacturers on incremental sales from products manufactured in India, thereby boosting domestic production and attracting investments.

The surge in India's manufacturing sector is largely driven by robust domestic consumption and significant government support through various policies like PLI schemes and infrastructure development.

AIFs are defined as privately pooled investment vehicles, which collect funds from sophisticated investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of their investors.

SEBI has focused on ensuring that distributions from AIFs are paid directly to investors and on increasing transparency regarding fees, expenses, and valuation methodologies to protect investor interests.

SEBI has been concerned about issues like opaque structures, valuation discrepancies, and the potential misuse of AIFs for evergreening of loans, leading to calls for enhanced transparency and investor protection.

The cooling-off period allows borrowers to exit the loan by repaying the principal amount along with the proportionate Annual Percentage Rate (APR) without any penalty, within a specified timeframe.

The guidelines mandate that all loan disbursements and repayments must be executed directly between the borrower and the Regulated Entity (RE), without any pass-through account of the LSP or any third party.

The guidelines aim to create a robust regulatory framework for digital lending, focusing on transparency, fair practices, and protecting borrowers from unethical practices.

The host nation of a G7 Summit often engages in intensified bilateral diplomacy with other member states to build consensus on key agenda items and strengthen overall group cohesion ahead of the summit.

Nations often deepen bilateral ties to enhance economic partnership, foster strategic collaboration, and align policy positions, especially in anticipation of major international forums like the G7 Summit.