CS Professional · IFSCA - Regulations, Listing and Compliances · International Financial Services Centres: An Introduction
The Central Government proposes a notification under section 31 directing that a provision of a Central Act shall not apply to a financial product in an IFSC. Which statement is correct about the procedure?
The draft notification must be laid before each House of Parliament for a total of thirty days. If both Houses agree to disapprove it or to modify it, it is not issued, or is issued only in the modified form agreed by both Houses.
- AThe notification takes effect immediately and is only reported to Parliament afterwards
- BA draft of the proposed notification is laid before each House of Parliament for thirty days, and if both Houses agree to disapprove or modify it, it is not issued or issued only as modifiedCorrect
- CThe notification needs the consent of the State Government of the IFSC only
- DThe notification can be issued only after the Authority approves it by regulation
Explanation
Section 31(2) requires the draft to be laid before each House for a total of thirty days, in one or more sessions. If both Houses agree in disapproving or modifying it before the expiry of the following session, it is not issued or is issued as modified. Option A reverses the sequence; section 13(3), by contrast, applies to amendments of the First Schedule.
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