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

IFSCA imposes a penalty on an IFSC unit under powers it exercises in place of an appropriate regulator. In what form is the penalty collected, and where are the sums realised credited?

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

  1. ACollected in Indian rupees and credited to the IFSCA's own fund
  2. BCollected in foreign currency equivalent, and credited to the Consolidated Fund of India in Indian rupeesCorrect
  3. CCollected in foreign currency and retained by the Authority in foreign currency
  4. DCollected in Indian rupees and credited to the state government

Explanation

Section 13 provides that penalties, fines, fees and settlement amounts are collected in the foreign currency equivalent of the amount imposed, using the RBI-notified rate on the date of the order. All sums realised by way of penalties or fines are credited to the Consolidated Fund of India in Indian rupees.

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