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CS Professional · Strategic Management and Corporate Finance · An Overview on Listing and Issuance of Securities in International Financial Services Centre

A company plans to list its securities on an international exchange in an IFSC. Under Section 20 of the IFSCA Act, 2019, in which currency must every transaction of financial services in the IFSC be carried out?

Every financial services transaction in an IFSC must be in the foreign currency specified by regulations made in consultation with the Central Government. It is neither rupee-denominated nor left to the issuer's or investor's preference, so a listing there must follow the specified currency.

  1. AIndian rupees only
  2. BIn such foreign currency as may be specified by regulations in consultation with the Central GovernmentCorrect
  3. CIn any currency chosen by the issuer without restriction
  4. DIn the currency of the country where the investor is resident

Explanation

Section 20 requires every transaction of financial services in an IFSC to be in such foreign currency as the regulations specify, in consultation with the Central Government. It is not rupee-based and is not left to the issuer's or investor's choice.

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