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

The Central Government proposes to notify that a certain provision of a Central Act will apply to financial institutions in an IFSC only with specified adaptations. Under Section 31, which statement correctly describes this power?

The notification may make the provision apply with the exceptions, modifications and adaptations it specifies. Section 31(1)(b) provides this alternative to complete disapplication under clause (a), and no parliamentary amendment is needed. Provisions relating to making of rules or regulations are excluded from this power.

  1. AIt can be exercised only by amending the Act in Parliament
  2. BIt permits the provision to apply with such exceptions, modifications and adaptations as the notification specifiesCorrect
  3. CIt permits only complete disapplication, never modification
  4. DIt extends to altering the provisions relating to making of rules or regulations under that Act

Explanation

Section 31(1)(b) allows application with exceptions, modifications and adaptations specified in the notification. Option 3 is wrong because clause (a) is only one of two alternatives. Option 4 is wrong because provisions relating to making of rules or regulations are expressly excluded.

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