12. Functions of Authority.—(1) Subject to the provisions of this Act, it shall be the duty of the
Authority to develop and regulate the financial products, financial services and financial institutions in the
International Financial Services Centres, by such measures as it deemsfit.
(2) Without prejudice to the generality of the provisions in sub-section (1), the powers and functions of
the Authority shall include—
(a) regulating the financial products, financialservices and financial institutions in an International
Financial Services Centre which have been permitted, before the commencement of this Act, by any
regulator for any International Financial Services Centre;
(b) regulating such other financial products, financial services or financial institutions in the
International Financial Services Centres as may be notified by the Central Government from time to
time;
(c) recommending to the Central Government such other financial products, financialservices and
financial institutions which may be permitted in an International Financial Services Centre by the
Central Government;
(d) perform such other functions as may be prescribed.
13. Powers of Authority in relation to financial products, financial services and financial
institutions.—(1) Notwithstanding anything contained in any other law for the time being in force, all
powers exercisable by an appropriate regulator, specified under column (2) of the First Schedule, under the
respective Acts as specified in the corresponding entry under column (3) of the said Schedule shall, in the
International Financial Services Centres, be exercised by the Authority in so far as it relates to the
regulation of the financial products, financial services or financial institutions, as the case may be.
(2) The Central Government may, by notification, amend the First Schedule by including therein any
financial sector regulator and the law administered by it, or omitting therefrom any financial sector
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regulator or any law specified therein, and on the publication of such notification, such regulator and the
law shall be deemed to be included in, or omitted from, the First Schedule.
(3) Every notification issued under sub-section (2) shall be laid before each House of Parliament.
(4) For the purposes of sub-section (1), the provisions of the respective Acts specified under column (3)
of the First Schedule relating to—
(a) the manner of filing an application for recognition or registration or withdrawal of recognition or
registration or furnishing of information orreports;
(b) the procedure of inspection, investigation or prosecution of offences, settlement of civil and
administrative proceedings, compounding or adjudication of any offence or penalty, or actions to be
taken in furtherance of such inspection, investigation, or adjudication or filing of appeals arising
therefrom;
(c) the determination or settlement, as the case may be, of any fee or fine or penalty or any other
sum of amount or punishment for the contravention of any provisions of respective Acts specified in
the First Schedule and recovery ofsuch fine or penalty,
shall, mutatis mutandis, apply to financial products, financial services and financial institutions under this
Act, as they apply to the financial products, financial services and financial institutions under such
respective Acts.
(5) The penalties, fines, fees and settlement amounts shall be collected or realised in the foreign
currency equivalent of the penalty or fine imposed.
Explanation.—The rate of exchange for computing the foreign currency equivalent to Indian rupees
shall be such as are as notified by the Reserve Bank of India on the date of the order imposing the penalty
or fine, as the case may be.
(6) All sums realised by way of penalties or fines under this Act shall be credited to the Consolidated
Fund of India in Indian rupees.
(7) The Authority may, in addition to the above, specify by regulations the manner in which the
functions may be performed by the Authority for carrying out the provisions of this section.