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CS Professional · IFSCA - Regulations, Listing and Compliances · Listing and Issuance of Securities

Rohan Metals Ltd, listed on an IFSC exchange, wants to understand the currency in which its securities will be traded and settled there. Which statement is correct?

Securities on IFSC exchanges trade and settle in permitted foreign currency, commonly US dollars, because the IFSC is treated as outside India's domestic territory for foreign exchange purposes. Trading is not limited to rupees, and issuers cannot choose arbitrary tokens as currency.

  1. ATrading and settlement occur only in Indian rupees
  2. BTrading and settlement occur in permitted foreign currency, as the IFSC is treated as a jurisdiction outside India's domestic territory for foreign exchange purposesCorrect
  3. CTrading occurs in rupees but settlement in gold
  4. DThe issuer may choose any digital token as currency

Explanation

The IFSC is treated as a territory outside India for foreign exchange purposes, so securities listed on its exchanges trade and settle in permitted foreign currency, commonly US dollars. Rupee-only trading and digital tokens are not the position.

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