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

Before 2020, a product was permitted by a regulator for an IFSC unit. After the relevant provisions of the IFSCA Act, 2019 commenced, Meera, a compliance officer, asks who now regulates that already-permitted product within the IFSC. What does the Act say?

The Authority regulates it. Under section 12(2)(a), the Authority's powers and functions include regulating financial products, services and institutions in an IFSC that were permitted before the Act's commencement by any regulator for any IFSC. They neither lapse nor remain with the earlier regulator.

  1. AThe earlier regulator continues, as the Act does not touch past permissions
  2. BThe Authority regulates it, as its functions include products permitted before the Act's commencement by any regulator for an IFSCCorrect
  3. COnly the Central Government may regulate it directly
  4. DThe product lapses until the Authority re-permits it

Explanation

Section 12(2)(a) includes in the Authority's functions the regulation of products, services and institutions in an IFSC permitted before commencement by any regulator. It does not say they lapse or stay with the old regulator.

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