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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 the IFSCA Act, 2019 stating that a provision of a Central Act will apply to securities listing in an IFSC only with modifications. Which statement about the procedure is correct?

A 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 that modified form. The Central Government cannot bypass Parliament.

  1. AThe notification takes effect immediately and Parliament has no role
  2. BA draft is laid before each House for a total of thirty days, and it is not issued or is issued only in modified form if both Houses agree to disapprove or modify itCorrect
  3. CThe notification needs the prior consent of every State Legislature
  4. DA draft is laid before Lok Sabha alone for sixty days

Explanation

Section 31 lets the Central Government direct non-application or application with exceptions, modifications and adaptations. Under sub-section (2), the draft is laid before each House for thirty days in total, and if both Houses agree to disapprove or modify it, it is not issued or is issued only as modified. Parliament therefore has a role, and States and a sixty-day Lok Sabha-only rule do not feature.

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