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

Nirvana Capital, an IFSC unit, is fined by the Authority for a contravention. The fine is imposed by an order dated 10 March. In what form is the fine collected, and where are the sums realised credited, under the IFSCA Act, 2019?

The fine is collected in the foreign currency equivalent, converted at the exchange rate notified by the Reserve Bank of India on the date of the order imposing it. The sums realised are then credited to the Consolidated Fund of India in Indian rupees, as provided in section 13.

  1. ACollected in Indian rupees and credited to the IFSCA's own fund
  2. BCollected in the foreign currency equivalent, using the RBI-notified exchange rate on the order date, and credited to the Consolidated Fund of India in Indian rupeesCorrect
  3. CCollected in the foreign currency equivalent, using the rate on the date of payment, and credited to the Consolidated Fund of India
  4. DCollected in foreign currency and retained by the IFSCA for its operations

Explanation

Section 13(5) requires penalties and fines to be collected in the foreign currency equivalent, with the rate being that notified by the RBI on the date of the order imposing the penalty. Section 13(6) requires sums realised to be credited to the Consolidated Fund of India in Indian rupees. Using the payment date is wrong because the Act fixes the order date.

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