New rules regarding procedure for making regulations under the International Financial Services Centres Authority, introduced

The International Financial Services Centres Authority has notified the International Financial Services Centres Authority (Procedure for making Regulations) Regulations, 2021 vide notification dated 05.07.2021. These regulations shall not be applicable to regulations made by the Authority in respect of organisational matters.

 

The Regulations are divided into three chapters consisting of preliminary, making of regulations and amendment & review of regulations. Key takeaways are as follows:

  • The Authority may make regulations to carry out the provisions of the Act with the approval of the authority, in compliance with regulations 4 (Public Consultation) and 5 (Urgent Regulations).
  • Public Consultation: Under Regulation 4, the Authority has the responsibility of seeking comments from the public by allowing them atleast 21 days to submit their views, by uploading the following with respect to regulation:
    1. draft of proposed regulations;
    2. the specific provision of the Act under which the authority proposes regulations;
    3. a statement of the issue that the proposed regulation seeks to address;
    4. a statement carrying norms advocated by international standard setting agencies and the international best practices, if any, relevant to the proposed regulation; and
    5. the manner, process and timelines for receiving comments from the public.

 

The public comments so received shall be considered by the authority and shall be uploaded on the website. 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. 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.

  • Urgent regulations: Under Regulation 5, 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 with the approval of Authority. These regulations made under shall automatically lapse after a period of six months from the date of notification unless replaced by regulations made in accordance with these regulations.
  • Amendment of Regulations: Under Regulation 6, An amendment to any regulations shall be made in compliance with the provisions of Chapter II (Regulations 4 & 5).
  • Review of Regulations: The Authority shall review each regulation every three years unless a review is warranted earlier, 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.

 

Access the regulation, HERE.

 


*Tanvi Singh, Editorial Assistant has put this story together.

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