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

Arjun, a lawyer, wants to know how a financial product not yet permitted in GIFT IFSC can come to be regulated by the IFSCA. Which route is described in the Act?

The Authority recommends further products to the Central Government for permission, and the Central Government notifies such other products for regulation by the Authority. This follows section 12(2)(b) and (c); the Authority cannot add products on its own.

  1. AThe Authority may on its own notify the product for regulation
  2. BAny stock exchange may declare it regulated
  3. CThe Authority recommends it to the Central Government for permission, and the Central Government may notify other products for regulation by the AuthorityCorrect
  4. DThe RBI Governor may add it through the First Schedule

Explanation

Section 12(2)(b) and (c) give the Authority the function of regulating other products as notified by the Central Government and of recommending to it further products that may be permitted. The Authority therefore cannot add them unilaterally.

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