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

The Central Government wants a provision of another Central Act to apply to financial services in an IFSC only with certain modifications. Under the IFSCA Act, 2019, which step is correct?

The Central Government may issue a notification applying the provision with exceptions, modifications and adaptations. Under section 31, the draft notification must be laid before each House of Parliament for a total period of thirty days, and both Houses can disapprove or modify it.

  1. AThe IFSCA alone may amend that Central Act by regulation
  2. BThe Central Government may notify the modified application, and the draft notification must be laid before each House of Parliament for a total of thirty daysCorrect
  3. CA State Government may notify the modification with the Development Commissioner's consent
  4. DThe Central Government may notify it, with no Parliamentary laying required

Explanation

Section 31(1) lets the Central Government, by notification, direct that provisions of other Central Acts do not apply, or apply with exceptions, modifications and adaptations, in an IFSC. Section 31(2) requires the draft to be laid before each House for a total of thirty days. Hence a notification without laying is wrong.

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