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

The Central Government wants a provision of a Central Act to stop applying to a financial institution operating in GIFT IFSC. Under the IFSCA Act, 2019, which authority and instrument is used for this under Section 31?

The Central Government does it by notification under Section 31(1). It can direct that specified provisions of other Central Acts, rules or regulations do not apply to IFSC financial products, services or institutions, or apply with exceptions, modifications and adaptations. The IFSCA's regulations power is separate.

  1. AThe Central Government, by notificationCorrect
  2. BThe IFSCA, by regulations under Section 28
  3. CThe Reserve Bank of India, by circular
  4. DThe IFSCA, by an order of its Chairperson

Explanation

Section 31(1) empowers the Central Government, by notification, to direct that provisions of other Central Acts do not apply, or apply with modifications, to financial products, services or institutions in an IFSC. The IFSCA's regulation-making power under Section 28 is a different power and does not cover this.

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