Section 28C of The Securities and Exchange Board of India Act, 1992
Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Board under this Act,—
- (a)shall not extend to an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005 (28 of 2005);
- (b)shall be exercisable by the International Financial Services Centres Authority established under sub-section (1) of section 4 of the International Financial Services Centres Authority Act, 2019, in so far as regulation of financial products, financial services and financial institutions that are permitted in the International Financial Services Centres are concerned.]
Summary
- The standard powers of the Board do not apply inside an International Financial Services Centre.
- These special centres are established under Section 18 of the Special Economic Zones Act of 2005.
- A different group called the International Financial Services Centres Authority takes over the regulatory power in these areas.
- This Authority was created under Section 4 of the International Financial Services Centres Authority Act of 2019.
- This Authority specifically regulates the financial products, services, and institutions that are officially permitted inside the centre.
Practical examples
FAQ
1. Does the regular Board control businesses located in an International Financial Services Centre?
No, the standard Board's powers under the Act do not extend to these specific centres.
2. Who regulates financial services in these centres instead?
They are regulated by the International Financial Services Centres Authority.
3. Which law created the Authority that takes over these powers?
The Authority is established under the International Financial Services Centres Authority Act of 2019.
Test yourself
Q1.Under Section 28C of The Securities and Exchange Board of India Act, 1992, how do the powers of the Board apply to an International Financial Services Centre?
Q2.Under Section 28C of The Securities and Exchange Board of India Act, 1992, which external law provides the foundation for setting up an International Financial Services Centre?
Q3.Under Section 28C of The Securities and Exchange Board of India Act, 1992, which entity exercises regulatory powers in place of the Board inside these special centres?
Q4.Under Section 28C of The Securities and Exchange Board of India Act, 1992, what exactly does the new Authority regulate within the International Financial Services Centres?