Skip to content

CS Professional · IFSCA - Regulations, Listing and Compliances · IFSCA Ecosystem and Regulatory Framework

IFSCA imposes a penalty on a unit in GIFT IFSC for contravening a provision of an Act administered by a financial sector regulator listed in the First Schedule. In what form is the penalty collected, and where are the sums realised credited under the IFSCA Act, 2019?

Penalties are collected in the foreign currency equivalent, using the exchange rate notified by the RBI on the date of the penalty order. All sums realised as penalties or fines are credited to the Consolidated Fund of India in Indian rupees.

  1. ACollected in Indian rupees; credited to the IFSCA's own fund
  2. BCollected in the foreign currency equivalent of the penalty, converted at the RBI-notified rate on the date of the order; credited to the Consolidated Fund of India in Indian rupeesCorrect
  3. CCollected in foreign currency at the rate on the date of payment; credited to the Consolidated Fund of India in foreign currency
  4. DCollected in the currency chosen by the unit; credited to the Reserve Bank of India

Explanation

Section 13(5) requires collection in the foreign currency equivalent, using the RBI-notified rate on the date of the order imposing the penalty. Section 13(6) says sums realised by way of penalties or fines are credited to the Consolidated Fund of India in Indian rupees. The date-of-payment rate and own-fund credit are both wrong.

Did you get it right without looking?

One question tells you little. A timed set on IFSCA Ecosystem and Regulatory Framework shows your real accuracy, how long you take and where you lose marks.

Practise IFSCA Ecosystem and Regulatory FrameworkFree diagnostic mock

More IFSCA Ecosystem and Regulatory Framework questions