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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 to notify that a provision of another Central Act shall apply to financial products in an IFSC with certain modifications. Which statement correctly describes the parliamentary procedure for such a notification?

A draft of the proposed notification is laid before each House of Parliament for thirty days in total. If both Houses agree in disapproving it, it is not issued; if both agree on a modification, it is issued only in that modified form.

  1. AIt is issued directly and laid before Parliament after issue, with no power to modify it
  2. BA copy of the proposed notification is laid in draft before each House for a total of thirty days, and if both Houses agree in disapproving or modifying it, it is not issued or is issued only in the modified formCorrect
  3. CIt needs the prior approval of a simple majority in only the Lok Sabha
  4. DIt takes effect only after the IFSC Authority approves the draft by regulations

Explanation

The Central Government may by notification direct that other Central Act provisions shall not apply, or apply with exceptions, modifications and adaptations, to IFSC financial products, services or institutions. The proposed notification must be laid in draft before each House for thirty days in total. If both Houses agree in disapproving or modifying it, it is not issued or issued only in the agreed modified form. Option A describes post-issue laying, which is the procedure for amending the First Schedule.

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