Question

Consider the following statements about the International Financial Services Centres Authority (IFSC

Q: Answer-Consider the following statements about the International Financial Services Centres Authority (IFSC...

Statements I and II are correct. Statement III is INCORRECT transactions within IFSCs are conducted in freely convertible FOREIGN CURRENCIES USD, EUR, GBP etc., not in Indian Rupees. This is a defining feature of IFSCs they are designed to attract international financial business by operating in foreign currency, outside the domestic currency framework. Rupee-denominated instruments may be introduced gradually but foreign currency transactions are the primary mode.

A : I. IFSCA was established under the IFSCA Act, 2019 and exercises unified regulatory powers of RBI, SEBI, IRDAI, and PFRDA within IFSCs. II. GIFT City, Gandhinagar is the only operational IFSC in India and serves as the headquarters of IFSCA. III. All transactions within IFSCs are mandatorily conducted in Indian Rupees to promote Rupee internationalisation. Which of the above is/are correct?

A I and II only

B II and III only

C I and III only

D I only

E All of the above

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