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

Sunrise Capital Ltd plans to list debt securities on a stock exchange in GIFT IFSC and asks a company secretary which Act gives IFSCA its statutory power to make regulations for the listing of securities there. What is the correct advice?

The IFSCA Act, 2019 is the source of IFSCA's power to make regulations. It lets IFSCA regulate financial products, services and institutions in the IFSC, including listing of securities. Other Acts may apply with modifications, but they are not the primary source of that power.

  1. AOnly the Companies Act, 2013 empowers IFSCA to frame listing regulations
  2. BThe Foreign Exchange Management Act, 1999 is the sole source of that power
  3. CThe Securities Contracts (Regulation) Act, 1956 alone, with no role for IFSCA's own Act
  4. DThe IFSCA Act, 2019 empowers IFSCA to make regulations to carry out its provisions, including those on financial products and services in the IFSCCorrect

Explanation

IFSCA derives its regulation-making power from the IFSCA Act, 2019, which covers financial products, services and institutions permitted in an IFSC. The other Acts may apply in modified form, but they are not the source of IFSCA's own regulation-making power.

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