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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, which is a general law for financial products, to apply in GIFT IFSC only with certain modifications and adaptations. Which route does the IFSCA Act, 2019 provide, and what parliamentary step applies?

The Central Government may notify under section 31 that the provision applies with exceptions, modifications and adaptations in an IFSC. The proposed notification must first be laid in draft before each House of Parliament for a total of thirty days.

  1. AIFSCA issues a regulation; it is laid before the Lok Sabha only
  2. BThe Central Government issues a notification under section 31; a draft is laid before each House of Parliament for a total of thirty daysCorrect
  3. CThe Central Government issues a notification under section 31, which takes effect immediately without being laid before Parliament
  4. DThe Central Government amends the Act through an ordinance only

Explanation

Section 31 lets the Central Government direct by notification that provisions do not apply, or apply with exceptions, modifications and adaptations, in an IFSC. A copy of the proposed notification must be laid in draft before each House for a total of thirty days. The notification cannot be issued if both Houses disapprove it, and is issued only in modified form if both agree on a modification.

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