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

An entity regulated in an International Financial Services Centre (IFSC) is penalised by the IFSCA under a provision of an Act listed in the First Schedule. In what currency is the penalty collected or realised from the entity?

Penalties, fines, fees and settlement amounts under the IFSCA Act are collected in the foreign currency equivalent of the penalty or fine imposed. The rupee amount is only the basis for conversion, and the realised sums are then credited to the Consolidated Fund of India in rupees.

  1. AIndian rupees only, at the rate on the date of contravention
  2. BThe foreign currency equivalent of the penalty imposedCorrect
  3. CUS dollars only, irrespective of the order
  4. DAny currency chosen by the entity

Explanation

The Act says penalties, fines, fees and settlement amounts are collected in the foreign currency equivalent of the penalty or fine imposed. Rupees only is wrong because the rupee figure is just the base used for conversion. The sums are credited to the Consolidated Fund of India in rupees.

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