The International Financial Services Centres Authority Act, 2019
Administered Ministry: Ministry of Finance / Department of Economic Affairs
Section
Section 21 Power to issue directions.
(1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time:
Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.
(2)The decision of the Central Government, whether a question is one of policy or not, shall be final.
Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.
(2)The decision of the Central Government, whether a question is one of policy or not, shall be final.
Section 22 Power of Central Government to supersede Authority.
(1) If at any time the Central Government is of the opinion that---
(a) on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under this Act; or
(b) the Authority has persistently defaulted in complying with any direction given by the Central Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under this Act and as a result of such default the financial position of the Authority or the administration of the Authority has deteriorated; or
(c) circumstances exist which render it necessary in the public interest so to do,
the Central Government may, by notification and for reasons to be specified therein,supersede the Authority for such period, not exceeding six months, as may be specified in the notification:
Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Authority to make representations, if any, of the Authority.
(2) Upon the publication of a notification under sub-section (1) superseding the Authority,---
(a) the Chairperson and other Members shall, as from the date of super session, vacate their offices as such;
(b) all the powers, functions and duties which may, by or under this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and
(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government.
(3) On or before the expiration of the period of super session specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other Members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for reappointment.
(4) The Central Government shall, as soon as may be, cause a copy of the notification issued under sub-section (1) and a full report to any action taken by it, to be laid before each House of Parliament.
(a) on account of circumstances beyond the control of the Authority, it is unable to discharge the functions or perform the duties imposed on it by or under this Act; or
(b) the Authority has persistently defaulted in complying with any direction given by the Central Government under this Act or in the discharge of the functions or performance of the duties imposed on it by or under this Act and as a result of such default the financial position of the Authority or the administration of the Authority has deteriorated; or
(c) circumstances exist which render it necessary in the public interest so to do,
the Central Government may, by notification and for reasons to be specified therein,supersede the Authority for such period, not exceeding six months, as may be specified in the notification:
Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Authority to make representations, if any, of the Authority.
(2) Upon the publication of a notification under sub-section (1) superseding the Authority,---
(a) the Chairperson and other Members shall, as from the date of super session, vacate their offices as such;
(b) all the powers, functions and duties which may, by or under this Act, be exercised or discharged by or on behalf of the Authority shall, until the Authority is reconstituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct; and
(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted under sub-section (3), vest in the Central Government.
(3) On or before the expiration of the period of super session specified in the notification issued under sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its Chairperson and other Members and in such case any person who had vacated his office under clause (a) of sub-section (2) shall not be deemed to be disqualified for reappointment.
(4) The Central Government shall, as soon as may be, cause a copy of the notification issued under sub-section (1) and a full report to any action taken by it, to be laid before each House of Parliament.
Section 23 Delegation of powers.
(1) The Authority may, by general or special order in writing, delegate to any Member or officer of the Authority subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the powers under section 28) as it may deem necessary.
(2) The Authority may, by a general or special order in writing, also form committees of the Members and delegate to them the powers and functions of the Authority, as may be specified by regulations.
(2) The Authority may, by a general or special order in writing, also form committees of the Members and delegate to them the powers and functions of the Authority, as may be specified by regulations.
Section 24 Members, officers and employees of the Authority to be public servants.
The Members, officers and employees of the Authority shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian PenalCode (45 of 1860).
Section 25 Protection of action taken in good faith.
No suit, prosecution or other legal proceedings shall lie against the Central Government or the Authority or its Members, officers or other employees, for anything which is done, or intended to be done, in good faith under this Act.
Section 26 Exemption from tax.
Nothing contained in any other law or enactment for the time being in force, in relation to taxation, including the Income-tax Act,1961 (43 of 1961),shall make the Authority liable to pay income-tax or any other tax or duty with respect to its income, services or profits or gains.
Section 27 Power to make rules.
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the composition and the manner of constitution of the Selection Committee under sub-section (4) of section 5;
(b) the salaries and allowances and other terms and conditions of service of Members under sub-section (2) of section 6;
(c) other functions to be performed by the Authority under clause (d) of sub-section (2) of section 12;
(d) the form in which the accounts and other relevant records to be maintained and annual statement of accounts to be furnished under sub-section (1) of section 16;
(e) the form and manner of furnishing of returns and statements and other particulars under sub-section (1) of section 19;
(f) the form of annual report of activities, policies and programmes under sub-section (2) of section 19;
(g) any other matter which is to be, or may be, prescribed.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the composition and the manner of constitution of the Selection Committee under sub-section (4) of section 5;
(b) the salaries and allowances and other terms and conditions of service of Members under sub-section (2) of section 6;
(c) other functions to be performed by the Authority under clause (d) of sub-section (2) of section 12;
(d) the form in which the accounts and other relevant records to be maintained and annual statement of accounts to be furnished under sub-section (1) of section 16;
(e) the form and manner of furnishing of returns and statements and other particulars under sub-section (1) of section 19;
(f) the form of annual report of activities, policies and programmes under sub-section (2) of section 19;
(g) any other matter which is to be, or may be, prescribed.
Section 28 Power to make regulations.
(1) The Authority may, by notification, make regulations consistent with this Act and the rules made thereunder for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:--
(a) the time and place of meetings and the rules of procedure in regard to transaction of business at such meetings under sub-section (1) of section 8;
(b) the salaries and allowances and other terms and conditions of service of officers and other employees of Authority under sub-section (2) of section 11;
(c) the manner in which the Authority may perform its functions under sub-section (7) of section 13;
(d) the manner of providing information to the Performance Review Committee under sub-section (4) of section 17;
(e) the maintenance of the website or any other universally accessible repository of electronic information under sub-section (1) of section 18;
(f) the foreign currency in which transaction of financial services in International Financial Services Centres may be conducted under section 20;
(g) the powers and functions of the Authority which may be delegated under sub-section (2) of section 23;
(h) any other matter which is required to be or may be, specified by regulations.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:--
(a) the time and place of meetings and the rules of procedure in regard to transaction of business at such meetings under sub-section (1) of section 8;
(b) the salaries and allowances and other terms and conditions of service of officers and other employees of Authority under sub-section (2) of section 11;
(c) the manner in which the Authority may perform its functions under sub-section (7) of section 13;
(d) the manner of providing information to the Performance Review Committee under sub-section (4) of section 17;
(e) the maintenance of the website or any other universally accessible repository of electronic information under sub-section (1) of section 18;
(f) the foreign currency in which transaction of financial services in International Financial Services Centres may be conducted under section 20;
(g) the powers and functions of the Authority which may be delegated under sub-section (2) of section 23;
(h) any other matter which is required to be or may be, specified by regulations.
Section 29 Rules and regulations to be laid before Parliament.
Every rule and every regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation.
Section 30 Overriding effect.
The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of any law other than this Act.
Section 31 Power to modify provisions of other enactments in relation to International Financial Services Centres.
(1) The Central Government may, by notification, direct that any of the provisions of any other Central Act or any rules or regulations made thereunder or any notification or order issued or direction given thereunder (other than the provisions relating to making of the rules or regulations) specified in the notification--
(a) shall not apply to financial products,financial services or financial institutions, as the case may be, in an International Financial Services Centre; or
(b) shall apply to financial products, financial services or financial institutions, as the case may be, in an International Financial Services Centre with such exceptions, modifications and adaptations, as may be specified in the notification.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.
(a) shall not apply to financial products,financial services or financial institutions, as the case may be, in an International Financial Services Centre; or
(b) shall apply to financial products, financial services or financial institutions, as the case may be, in an International Financial Services Centre with such exceptions, modifications and adaptations, as may be specified in the notification.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.
Section 32 Power to remove difficulties.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Provided that no order shall be made under this section after the expiry of five years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Section 33 Amendment to certain enactments.
The enactments specified in the Second Schedule shall be amended in the manner specified therein.
Section 34 Savings.
All rules and regulations made or purporting to have been made or all notifications issued or purporting to have been issued under any Central Act relating to the financial products, financial services or financial institutions, as the case may be, shall, in so far as they relate to matters for which provision is made in this Act or the rules or regulations made or notification issued thereunder and are not inconsistent therewith, be deemed to have been made or issued under this Act as if this Act had been in force on the date on which such rules were made or notifications were issued and shall continue to be in force unless and until they are superseded by any rules or regulations made or notifications issued under this Act.