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CS Professional · Strategic Management and Corporate Finance · An Overview on Listing and Issuance of Securities in International Financial Services Centre

Under the International Financial Services Centres Authority Act, 2019, which of the following is expressly listed as a 'financial product', making its issuance in an IFSC a regulated activity of the Authority?

Securities are expressly listed as a financial product in the IFSCA Act, 2019, along with insurance contracts, deposits, credit arrangements and certain foreign currency contracts. Hence issuing shares or bonds in an IFSC falls within the Authority's regulatory remit, whereas property or goods do not.

  1. ASecuritiesCorrect
  2. BImmovable property
  3. CAgricultural produce
  4. DGoods held for trading

Explanation

The definition of 'financial product' in Section 3 lists securities, contracts of insurance, deposits, credit arrangements, certain foreign currency contracts and any other product notified by the Central Government. Immovable property, agricultural produce and trading goods are not in this list, so only securities qualifies.

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