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Before I proceed to answer the second question, I must look into the provisions of Section 370 of the Indian Penal Code. Section 370 of the Indian Penal Code reads as under :

"Section 370 of the Indian Penal Code: (1) Whoever, for the purpose of exploitation, (a) recruits, (b) transports, (c) harbours, (d) transfers, or (e) receives, a person or persons, by --

The clarification was sought in the following words :

"Dear Ms.Seshu The Committee, in its report of January 23, 2013, proposed certain amendments to Section 370, IPC, to introduce a definition of the offence of 'trafficking' into the IPC and the punishment thereof. The Committee also notes that the Ministry of Law and Justice, Government of India, by way of the Criminal Law (Amendment) Ordinance, 2013 ('Ordinance'), dated February 3, 2013, has amended Section 370 of the IPC in terms of the Committee's recommendations.
The clarification dated 8th February 2013 reads as under :
"This is to express our concern at the ambiguous manner in which the term "prostitution" has been used in Section 370 IPC of the Verma Committee Report. In this section, which deals with the offence of Trafficking of Persons, the term "exploitation"
d) It shall be noted that in the wake of gang rape of Nirbhaya in Delhi which arose an unprecedent public furore, Government considered it fit to drastically amend several provisions of IPC and in that direction appointed a Committee under the Chairmanship of late Justice J.S.Verma, the former Chief Justice of India. The Committee after interacting cross sections of stake holders submitted its detailed report suggesting amendments and introduction of various provisions in penal laws like IPC, Cr.P.C., Evidence Act etc. Consequent upon the said report sub-clause (2) of Section 370 IPC was amended and Section 370A IPC was introduced.