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CS Executive · Capital Market and Securities Laws · International Financial Services Centres Authority (IFSCA)

The Central Government proposes a notification under section 31 of the IFSCA Act, 2019 directing that a provision of another Central Act shall not apply to financial products in an IFSC. Which statement about the procedure is correct?

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, and if both agree on modifications, it is issued only in the modified form.

  1. AA copy of the proposed notification must be laid in draft before each House for a total of thirty days, and it is not issued if both Houses agree in disapproving itCorrect
  2. BThe notification takes effect at once and is laid before Parliament only after issue
  3. CThe notification needs approval of only the Lok Sabha by simple majority
  4. DParliament has no role as the power is purely executive

Explanation

Section 31(2) requires the draft notification to be laid before each House for thirty days, in one session or successive sessions. If both Houses agree in disapproving it, it is not issued, and if both agree on a modification, it is issued only in that modified form. Laying it after issue is wrong because the draft is laid beforehand.

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