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CS Professional · Strategic Management and Corporate Finance · An Overview on Listing and Issuance of Securities in International Financial Services Centre

The Central Government proposes a notification under Section 31 of the IFSCA Act, 2019 directing that a provision of an Indian Central Act shall apply to securities listed in an IFSC with modifications. Which statement correctly describes the process and its limits?

A draft notification under Section 31 must be laid before each House of Parliament for a total of thirty days. If both Houses agree to disapprove it, it is not issued; if both agree to modify it, it is issued in that form. Rule-making provisions cannot be disapplied.

  1. AThe notification takes effect immediately and Parliament has no role
  2. BThe provisions relating to making of rules or regulations can also be disapplied through it
  3. CA draft must be laid before each House of Parliament for a total of thirty days, and it is issued only if both Houses do not agree in disapproving it, or in modified form if both agree on modificationsCorrect
  4. DThe notification needs the prior consent of every State Government

Explanation

Section 31(2) requires the draft notification to be laid before both Houses for thirty days. If both Houses agree in disapproving it, it is not issued; if both agree on a modification, it is issued only in that modified form. The power excludes provisions relating to making of rules or regulations, so the second option is wrong.

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