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

The Central Government proposes a notification under Section 31 of the IFSCA Act, 2019 directing that a provision of another Central Act apply to financial products in an IFSC with modifications. Which procedural requirement applies before it is issued?

The proposed notification must be laid in draft before each House of Parliament for a total of 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.

  1. AA 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 or modifying itCorrect
  2. BIt takes effect immediately and is laid before Parliament after issue
  3. CIt requires only the consent of the IFSCA Chairperson
  4. DIt requires approval of the Reserve Bank of India alone

Explanation

Section 31(2) requires a copy of the proposed notification to be laid in draft before each House for thirty days. If both Houses agree in disapproving it, it is not issued; if both agree on a modification, it is issued in that modified form. Post-issue laying (the Section 13(3) approach for First Schedule amendments) is a different route and is the key distractor.

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