UPSC CSE Current Affairs — 22 October 2026

Persistent Systems opened a Qualified Institutional Placement to raise up to USD 450 million, approximately Rs 4,265 crore, with the floor price set at Rs 5,761 per equity share under SEBI's ICDR Regulations pricing formula. Shareholders had earlier approved a discount of up to 5% on this floor price. Proceeds will partly finance the acquisition of Nagarro. The QIP follows Persistent's 26th consecutive quarter of revenue growth, with Q2 FY26 revenue rising 30.3% year-on-year to Rs 4,663.9 crore.

A Qualified Institutional Placement (QIP) is a capital-raising mechanism introduced by SEBI in 2006 to allow listed companies to issue equity shares, convertible securities, or debentures to Qualified Institutional Buyers (QIBs) without a public prospectus. QIBs include mutual funds, foreign portfolio investors, insurance companies, and scheduled commercial banks, among others.

The floor price in a QIP is computed using a SEBI-prescribed formula under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 — commonly called SEBI ICDR Regulations. The formula typically takes the average of the weekly high and low closing prices of the share on the stock exchange where the highest trading volume was recorded during the two weeks preceding the relevant date. Companies may offer a discount of up to 5% on this floor price, but only after securing shareholder approval through a special resolution.

QIPs were designed to reduce India's dependence on foreign capital markets (ADRs/GDRs) and streamline the domestic fundraising process. They are faster than Follow-on Public Offers (FPOs) because they bypass retail investors and avoid lengthy SEBI approval timelines.

The connection to the Nagarro acquisition is important: companies often use QIPs to fund large M&A deals, and SEBI's pricing rules ensure institutional investors receive shares at a market-linked, transparent price. The RBI/FBIL reference rate (Rs 94.7691 per USD here) is used to convert the USD-denominated issue size into rupee terms — a fact that links RBI's forex operations to capital market transactions.

India is integrating space capabilities into national defence through dedicated institutions and dual-use technology. The Defence Space Agency, established under the Integrated Defence Staff, coordinates military space operations. India demonstrated kinetic anti-satellite capability in Mission Shakti (2019), joining a small group of nations with that ability. Policy now pushes indigenous satellite communication, surveillance constellations, and space situational awareness, combining ISRO's civilian infrastructure with military requirements under a sovereign framework.

India's military space programme sits at the intersection of three exam-relevant domains: space technology, defence institutions, and India's strategic autonomy doctrine.

The foundational shift is institutional. The Defence Space Agency (DSA), created in 2019 under the Integrated Defence Staff headquartered in Bengaluru, replaced ad-hoc tri-service arrangements. It works alongside the Defence Space Research Organisation (DSRO), which provides the R&D backbone. This mirrors the civilian ISRO–DOS (Department of Space) structure, but serves purely military requirements.

The technology layer is equally significant. India's GSAT-7 (Rukmini) provides secure communications to the Navy; GSAT-7A serves the Air Force. A dedicated Army satellite is in planning. The EMISAT satellite launched in 2019 performs electronic intelligence (ELINT) gathering — mapping adversary radar signatures. These satellites are complementary to NAVIC, India's regional navigation system, which also has strategic utility.

Mission Shakti (27 March 2019) gave India kinetic hard-kill ASAT (anti-satellite) capability, destroying Microsat-R at approximately 300 km altitude in low Earth orbit. This placed India in the club of four nations — USA, Russia, China, and India — with demonstrated ASAT capability.

The policy gap that remains: India still lacks a dedicated Space Warfare doctrine and its national Space Policy (2023) primarily addresses civilian and commercial dimensions, leaving the military framework evolving through executive orders and tri-service arrangements rather than legislation.

India successfully test-fired the K-4 submarine-launched ballistic missile from INS Arighaat, the country's second nuclear-powered ballistic missile submarine. The K-4 has a strike range of approximately 3,500 km and can carry nuclear warheads. This test validates the sea-based leg of India's nuclear triad — the ability to launch nuclear weapons from land, air, and sea — reinforcing credible second-strike capability and survivable deterrence against a nuclear first strike.

India's nuclear doctrine rests on 'No First Use' (NFU) and 'credible minimum deterrence.' For NFU to be credible, India must be able to absorb a first strike and still retaliate with unacceptable damage — this requires a survivable second-strike capability. Land-based missiles (Agni series) and aircraft are vulnerable to a disarming first strike. Submarines, being hidden underwater, are the most survivable platform.

The nuclear triad — land, air, sea — is complete only when all three legs are operationally validated. INS Arihant, India's first SSBN (Ship Submersible Ballistic Nuclear), already patrols with K-15 (Sagarika) missiles of ~750 km range. INS Arighaat is the second SSBN, and the K-4 SLBM extends the sea-based reach to ~3,500 km, capable of targeting adversaries deep inland without the submarine surfacing close to hostile coastlines.

The K-4 is developed by DRDO under the Advanced Systems Laboratory. It uses solid fuel and a canisterised launch system for rapid deployment. It bridges the gap between the short-range K-15 and the longer-range K-5/K-6 missiles under development.

For UPSC, the examiner tests: the components of the triad, which platforms carry which missiles, the doctrine behind NFU, and India's strategic deterrence architecture. The Rajnath Singh context (SCO meeting, anti-terrorism messaging) is the news hook, but the static knowledge being tested is India's nuclear posture and submarine programme.

Ahead of Budget 2027, debate has reopened on long-term capital gains tax across asset classes. Listed equity and equity mutual funds attract 12.5% LTCG above ₹1.25 lakh, with a one-year holding period. Debt mutual funds and gold are taxed at 12.5% after two years. Immovable property draws 12.5% LTCG without indexation after two years. Each asset class carries a distinct holding period threshold, tax rate, and exemption limit under the current Income Tax Act framework.

Long-term capital gains tax (LTCG) is levied on profits from selling capital assets held beyond a specified period. The key policy design choices are: the holding period that qualifies gains as 'long-term,' the applicable tax rate, and whether indexation (inflation adjustment on cost) is allowed.

Budget 2024 rationalised LTCG rates sharply. Before it, equity LTCG above ₹1 lakh was taxed at 10%; that exemption threshold was raised to ₹1.25 lakh and the rate to 12.5%, while the indexation benefit on property was withdrawn. This made the tax treatment of property more punishing in real terms — a politically sensitive change that feeds the Budget 2027 debate.

For exam purposes, the transmission mechanism matters: LTCG design affects asset allocation decisions of households, which in turn affects capital formation, equity market depth, and real estate demand. A higher LTCG on equities relative to property can shift savings away from productive financial assets. Conversely, removing indexation from property raises the effective tax burden on long-held assets even if the nominal rate looks low.

SEBI and RBI both track capital market flows and credit demand; changes in LTCG can shift household savings between bank deposits, mutual funds, and real estate — directly affecting credit offtake and monetary transmission. UPSC tests the fiscal policy dimension: how LTCG fits within capital gains tax architecture and its equity vs. efficiency trade-offs.