CS Professional · Strategic Management and Corporate Finance · An Overview on Listing and Issuance of Securities in International Financial Services Centre
The Central Government wishes the provisions of an existing Central Act on public issue of securities to apply to securities issued in an IFSC only with certain modifications. Which course does the IFSCA Act, 2019 provide, and what safeguard applies?
The Central Government may notify that another Central Act applies to IFSC financial products with specified exceptions, modifications and adaptations. The draft notification must be laid before each House of Parliament for thirty days, and if both Houses disapprove or modify it, it is not issued or is issued only as modified.
- AThe Authority amends the Central Act by its own regulation, with no Parliamentary involvement
- BThe Central Government notifies the exceptions, modifications and adaptations, and the draft notification is laid before both Houses of Parliament for thirty daysCorrect
- CThe High Court issues a direction after hearing the issuer
- DThe Central Government may modify it by a notification effective immediately without being laid before Parliament
Explanation
Section 31 lets the Central Government by notification direct that provisions of other Central Acts do not apply, or apply with exceptions, modifications and adaptations, to financial products in an IFSC. A draft must be laid before each House for a total of thirty days, and both Houses may disapprove or modify it. Hence immediate effect without laying is wrong.
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