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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 fund-raising entity in GIFT City asks whether the IFSC Authority can regulate a financial product that was permitted for an IFSC by another regulator before the Act commenced. What is the position under the Authority's functions?

Yes. The Authority's functions expressly include regulating financial products, services and institutions in an IFSC that were permitted before the Act commenced by any regulator for any IFSC. A fresh notification is needed only for other products to be regulated.

  1. AYes; regulating products, services and institutions permitted before commencement by any regulator for any IFSC is within the Authority's powers and functionsCorrect
  2. BNo; such products remain permanently with the original regulator
  3. CYes, but only after the Central Government issues a fresh notification for each product
  4. DNo; the Authority can regulate only products it has itself recommended

Explanation

The Authority's functions include regulating financial products, services and institutions in an IFSC which were permitted, before commencement of the Act, by any regulator for any IFSC. No fresh notification is required for these. Option C confuses this with the separate clause on 'other' products, which are regulated if notified by the Central Government.

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