Skip to content

CS Professional · Strategic Management and Corporate Finance · An Overview on Listing and Issuance of Securities in International Financial Services Centre

Bharat Infra Ltd plans to issue bonds from a unit in GIFT City. Which statement about the currency in which the issue's financial services transactions must be conducted is correct under the IFSCA Act, 2019?

Every transaction of financial services in an IFSC must be in such foreign currency as is specified by regulations made in consultation with the Central Government. It is neither mandatorily rupees nor freely chosen by the issuer, nor tied to the investor's home currency.

  1. AThey must always be in Indian rupees
  2. BThey must be in such foreign currency as may be specified by regulations in consultation with the Central GovernmentCorrect
  3. CThey may be in any currency chosen by the issuer without restriction
  4. DThey must be in the currency of the investor's home country

Explanation

The Act provides that every transaction of financial services in an IFSC shall be in such foreign currency as may be specified by regulations, in consultation with the Central Government. Rupee-only or free-choice options contradict this, and the investor's home currency is not the test.

Did you get it right without looking?

One question tells you little. A timed set on An Overview on Listing and Issuance of Securities in International Financial Services Centre shows your real accuracy, how long you take and where you lose marks.

Practise An Overview on Listing and Issuance of Securities in International Financial Services CentreFree diagnostic mock

More An Overview on Listing and Issuance of Securities in International Financial Services Centre questions