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CS Professional · IFSCA - Regulations, Listing and Compliances · International Financial Services Centres: An Introduction

The Central Government wants a Central Act administered by an outside regulator to apply to financial services in GIFT IFSC only with certain adaptations. Under the IFSCA Act, 2019, what is the correct route?

The Central Government may notify the exceptions, modifications and adaptations, but the proposed notification must first be laid in draft before each House of Parliament for a total of thirty days. Both Houses can disapprove or modify it, so it cannot be issued unilaterally.

  1. AThe Authority amends the Act by regulations without involving Parliament
  2. BThe Central Government issues a notification, a draft of which is laid before each House of Parliament for thirty daysCorrect
  3. CThe Central Government issues the notification directly, which takes effect without being laid before Parliament
  4. DThe appropriate regulator issues an order after consulting the IFSC unit

Explanation

The Central Government may by notification direct that provisions of another Central Act do not apply, or apply with exceptions, modifications and adaptations. A copy of the proposed notification must be laid in draft before each House for a total of thirty days, and both Houses may disapprove or modify it. Options without Parliament's draft-laying step are wrong.

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