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CS Professional · IFSCA - Regulations, Listing and Compliances · International Financial Services Centres: An Introduction

A regulator, the Pension Fund Regulatory body, is not presently in the First Schedule, and the Central Government wishes its law to be administered by the IFSCA in the IFSC. Separately, a firm asks who can recommend new financial products for IFSC permission. Which statement is correct under the IFSCA Act, 2019?

The Central Government may amend the First Schedule by notification, and under section 13 that notification must be laid before each House of Parliament. Under section 12(2)(c) the Authority only recommends further financial products, services or institutions, and the Central Government decides whether to permit them.

  1. AThe Central Government may amend the First Schedule by notification, and the notification must be laid before each House of Parliament; the Authority may recommend other products, services or institutions for permission by the Central GovernmentCorrect
  2. BThe IFSCA may amend the First Schedule by regulation, and the Central Government may recommend new products
  3. CThe First Schedule can be amended only by an Act of Parliament, and the Authority itself permits new products
  4. DThe Central Government may amend the First Schedule by notification without laying it, and the Authority permits new products on its own

Explanation

Section 13(2) lets the Central Government amend the First Schedule by notification, including or omitting regulators and laws, and section 13(3) requires every such notification to be laid before each House. Section 12(2)(c) gives the Authority the function of recommending to the Central Government other products, services or institutions that may be permitted. The permission rests with the Central Government.

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