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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 will apply to financial services in an IFSC with modifications. Which procedure applies to this notification?

The draft notification 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, and if both agree on a modification, it is issued only in the modified form.

  1. AIt takes effect on publication and is merely laid before Parliament afterwards
  2. BIt needs only the consent of the Authority and no parliamentary step
  3. CThe draft is laid before each House for a total of thirty days, and it is not issued, or is issued in modified form, if both Houses agree to disapprove or modify itCorrect
  4. DIt must be passed as a Bill by both Houses before it can be issued

Explanation

For such modification or non-application notifications, a copy of the proposed notification is laid in draft before each House for thirty days in total, in one or more 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 form. This differs from the amendment of the First Schedule, where notifications are simply laid after issue.

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