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

The Central Government proposes a notification under the IFSCA Act, 2019 directing that a provision of another Central Act shall not apply to financial products in an IFSC. What is the parliamentary requirement for such a notification?

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 a modification, it is issued only in that modified form.

  1. AThe draft is laid before each House for a total of thirty days, and it is not issued, or is issued only as modified, if both Houses agree in disapproving or modifying itCorrect
  2. BThe notification is issued first and laid before Parliament after issue for sixty days
  3. CThe notification needs an affirmative resolution passed by the Lok Sabha alone
  4. DNo laying before Parliament is required as it is an executive power

Explanation

Section 31(2) requires the draft notification to be laid before each House for thirty days, in one or more successive sessions. If both Houses agree in disapproving it, it is not issued; if both agree to modify it, it is issued only as modified. It is a draft procedure, not post-issue laying for sixty days.

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