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

Before the IFSCA Act, 2019 commenced, the SEBI had permitted a certain financial product in an IFSC. Which statement about IFSCA's functions regarding this product is correct?

IFSCA regulates such a product directly. Its functions include regulating financial products, services and institutions in an IFSC that any regulator permitted before the Act commenced, so no separate notification by the Central Government is required for them.

  1. AIFSCA's functions include regulating it, as it was permitted before commencement by a regulator for an IFSCCorrect
  2. BIFSCA may regulate it only after the Central Government separately notifies it
  3. CIFSCA has no role, as it remains with SEBI exclusively
  4. DIFSCA may regulate it only after Parliament passes a resolution

Explanation

Section 12(2)(a) includes regulating products, services and institutions in an IFSC which were permitted before commencement by any regulator for any IFSC. No fresh notification is needed. Notification by the Central Government under clause (b) applies to other products not covered by clause (a).

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