INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
Gandhinagar, the 5th July, 2021
International Financial Services Centres Authority (Procedure for making Regulations) Regulations, 2021
IFSCA/2021-22/GN/REG012.- In exercise of the powers conferred by sub-section (1) of section 28 of International Financial Services Centres Authority Act, 2019, the International Financial Services Centres Authority hereby makes the following regulations, namely: -
1. Short title and commencement.
(1) These regulations may be called the International Financial Services Centres Authority (Procedure for making Regulations) Regulations, 2021.
(2) Save as otherwise provided, these regulations shall come into force on the date of their publication in the Official Gazette.
(3) These regulations shall not apply to regulations made by the Authority in respect of organizational matters.
(1) In these regulations, unless the context otherwise requires, -
(a) “Act” means the International Financial Services Centres Authority Act, 2019 and
(b) “Authority” means the International Financial Services Centres Authority established under sub-section (1) of section 4;
(2) Words and expressions used and not defined in these regulations but defined in the Act shall have the meanings respectively assigned to them in the Act.
MAKING OF REGULATIONS
3. Making regulations.
The Authority may make regulations to carry out the provisions of the Act with the approval of the authority, in compliance with regulations 4 and 5.
4. Public Consultation.
(1) For the purpose of making regulations, the authority shall upload the following on its website seeking comments from the public: –
(a) draft of proposed regulations;
(b) the specific provision of the Act under which the authority proposes regulations;
(c) a statement of the issue that the proposed regulation seeks to address;
(d) a statement carrying norms advocated by international standard setting agencies and the international best practices, if any, relevant to the proposed regulation; and
(e) the manner, process and timelines for receiving comments from the public.
(2) The Authority shall ordinarily allow at least 21 days for public to submit their comments.
(3) The Authority shall consider the public comments received and upload the same on its website along with a general statement of its response on the comments, not later than the date of notification of regulations.
(4) If the Authority decides to approve regulations in a form substantially different from the proposed regulations other than changes made in consideration of comments received by it, it shall repeat the process under this regulation.
(5) The regulations shall be notified promptly after it is approved by the Authority and the date of their enforcement shall be from the date specified therein.
(6) Without prejudice to provisions in this regulation, the Authority may if it considers necessary constitute expert or advisory committees, as it may consider appropriate for making recommendations on drafting regulations.
5. Urgent regulations.
(1) Where the Authority is of the opinion that certain regulations are required to be made or existing regulations are required to be amended urgently, it may make such regulations or amend the existing regulations, as the case may be, with the approval of Authority, without following the provisions under this Chapter, if it considers that time required for compliance with those provisions would defeat the objectives sought to be achieved or cause undue delay in redressing the problem or market failure, provided it submits detailed justification for doing so.
(2) The regulations made under sub-regulation (1) shall automatically lapse after a period of six months from the date of notification unless replaced by regulations made in accordance with these regulations.
Provided that all regulations made prior to the notification of these regulations shall be deemed to have been made in accordance with these regulations and shall remain valid unless amended, repealed, or replaced.
AMENDMENT AND REVIEW OF REGULATIONS
6. Amendment of Regulations.
An amendment to any regulations shall be made in compliance with the provisions of Chapter II.
7. Review of Regulations.
The Authority shall review each regulation every three years unless a review is warranted earlier and amend or repeal any regulation, keeping in view-
(a) its objectives;
(b) its outcome;
(c) experience of its implementation;
(d) experience of its enforcement and the related litigation;
(e) global best practices, if any;
(f) its relevance in the changed environment; and
(g) any other factor considered relevant by the Authority.
INJETI SRINIVAS, Chairperson