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

IFSCA imposes a penalty on a stock exchange unit in GIFT City by order dated 10 March. For converting the rupee penalty into foreign currency, which exchange rate applies under the IFSCA Act, 2019?

The conversion uses the exchange rate notified by the Reserve Bank of India on the date of the order imposing the penalty or fine. It does not depend on when the contravention happened or when payment is made, and the IFSCA does not set its own rate.

  1. AThe rate notified by the Reserve Bank of India on the date of the order imposing the penaltyCorrect
  2. BThe rate notified by RBI on the date the contravention occurred
  3. CThe rate on the date the penalty is actually paid
  4. DThe rate fixed by the IFSCA Governing Board each quarter

Explanation

The Explanation to the section on powers in relation to financial products provides that the rate is the one notified by the Reserve Bank of India on the date of the order imposing the penalty or fine. The date of contravention or payment is not the reference date.

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