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CS Executive · Capital Market and Securities Laws · International Financial Services Centres Authority (IFSCA)

A fintech firm in GIFT City is penalised by IFSCA for breaching a provision of an Act listed in the First Schedule. Under the IFSCA Act, 2019, in which currency is the penalty collected, and where are the sums finally credited?

Penalties are collected in the foreign currency equivalent of the amount imposed, and all sums realised as penalties or fines are credited to the Consolidated Fund of India in Indian rupees, not to the IFSCA Fund.

  1. ACollected in Indian rupees only; credited to the IFSCA Fund
  2. BCollected in the foreign currency equivalent; credited to the Consolidated Fund of India in Indian rupeesCorrect
  3. CCollected in the foreign currency equivalent; credited to the IFSCA Fund in foreign currency
  4. DCollected in Indian rupees; credited to the Consolidated Fund of India in foreign currency

Explanation

Section 13(5) requires penalties, fines, fees and settlement amounts to be collected in the foreign currency equivalent of the amount imposed. Section 13(6) says all sums realised as penalties or fines are credited to the Consolidated Fund of India in Indian rupees. The IFSCA Fund (section 15) holds grants, fees and charges, not penalties.

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