21. Power to issue directions.—(1) Without prejudice to the foregoing provisions of this Act, the
Authority shall, in exercise of its powers or the performance of its functions under this Act, be bound by
such directions on questions of policy as the Central Government may give in writing to it from time to
time:
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Provided that the Authority shall, as far as practicable, be given an opportunity to express its views
before any direction is given under this sub-section.
(2)The decision oftheCentral Government, whether a question is one of policy or not, shall be final.
22. Power of Central Government to supersede Authority.—(1) If at any time the Central
Government is of the opinion that—
(a) on account of circumstances beyond the control of the Authority, it is unable to discharge the
functions or perform the duties imposed on it by or under thisAct; or
(b) the Authority has persistently defaulted in complying with any direction given by the Central
Government under this Act or in the discharge of the functions or performance of the duties imposed on
it by or under this Act and as a result of such default the financial position of the Authority or the
administration of the Authority has deteriorated; or
(c) circumstances exist which render it necessary in the public interest so to do,
theCentral Government may, by notification and for reasonsto be specified therein,supersede theAuthority for
such period, not exceeding sixmonths, as may be specified in the notification:
Provided that before issuing any such notification, the Central Government shall give a reasonable
opportunity to the Authority to make representations, if any, of the Authority.
(2) Upon the publication of a notification under sub-section (1) superseding the Authority,—
(a) the Chairperson and other Members shall, as from the date of supersession, vacate their offices
as such;
(b) all the powers, functions and duties which may, by or under this Act, be exercised or
discharged by or on behalf of the Authority shall, until the Authority is reconstituted under
sub-section (3), be exercised and discharged by such person or persons as the Central Government
may direct; and
(c) all properties owned or controlled by the Authority shall, until the Authority is reconstituted
under sub-section (3), vest in the Central Government.
(3) On or before the expiration of the period of supersession specified in the notification issued under
sub-section (1), the Central Government shall reconstitute the Authority by a fresh appointment of its
Chairperson and other Members and in such case any person who had vacated his office under clause (a) of
sub-section (2)shall not be deemed to be disqualified for reappointment.
(4) The Central Government shall, as soon as may be, cause a copy of the notification issued under
sub-section (1) and a full report to any action taken by it, to be laid before each House ofParliament.
23. Delegation of powers.—(1) The Authority may, by general or special order in writing, delegate to
any Member or officer of the Authority subject to such conditions, if any, as may be specified in the order,
such of its powers and functions under this Act (except the powers under section 28) as it may deem
necessary.
(2) The Authority may, by a general or special order in writing, also form committees of the Members
and delegate to them the powers and functions of the Authority, as may be specified by regulations.
24. Members, officers and employees of the Authority to be public servants.—The Members,
officers and employees of the Authority shall be deemed, when acting or purporting to act in pursuance of
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any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian
PenalCode (45 of 1860).
25. Protection of action taken in good faith.— No suit, prosecution or other legal proceedings shall
lie against the Central Government or the Authority or its Members, officers or other employees, for
anything which is done, or intended to be done, in good faith under this Act.
26. Exemption from tax.— Nothing contained in any other law or enactment for the time being in
force, in relation to taxation, including the Income-taxAct,1961 (43 of 1961),shallmake theAuthority liable
to pay income-tax or any other tax or duty with respect to its income, services or profits or gains.
27. Power to make rules.—(1) The Central Government may, by notification, make rules for carrying
out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide
for all or any of the following matters, namely:—
(a) the composition and the manner of constitution of the Selection Committee under sub-section
(4) of section 5;
(b) the salaries and allowances and other terms and conditions of service of Members under
sub-section (2) of section 6;
(c) other functions to be performed by the Authority under clause (d) of sub-section (2) of
section 12;
(d) the form in which the accounts and other relevant records to be maintained and annual
statement of accounts to be furnished under sub-section (1) of section 16;
(e) the form and manner of furnishing of returns and statements and other particulars under
sub-section (1) of section 19;
(f) the form of annual report of activities, policies and programmes under sub-section (2) of
section 19;
(g) any other matter which is to be, or may be, prescribed.
28. Power to make regulations.— (1) The Authority may, by notification, make regulations
consistent with this Act and the rules made thereunder for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters, namely:—
(a) the time and place of meetings and the rules of procedure in regard to transaction of business
at such meetings under sub-section (1) of section 8;
(b) the salaries and allowances and other terms and conditions of service of officers and other
employees of Authority under sub-section (2) of section 11;
(c) the manner in which the Authority may perform its functions under sub-section (7) of
section 13;
(d) the manner of providing information to the Performance Review Committee under sub-section
(4) of section 17;
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(e) the maintenance of the website or any other universally accessible repository of electronic
information under sub-section (1) of section 18;
(f) the foreign currency in which transaction of financialservicesin International Financial Services
Centres may be conducted under section 20;
(g) the powers and functions of the Authority which may be delegated under sub-section (2) of
section 23;
(h) any other matter which is required to be or may be, specified by regulations.
29. Rules and regulations to be laid before Parliament.—Every rule and every regulation made
under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it isin
session, for a total period of thirty days which may be comprised in one session or in two or more
successive sessions, and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or
both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so, however, that any such
modification or annulment shall be without prejudice to the validity of anything previously done under
that rule or regulation.
30. Overriding effect.— The provisions of this Act shall have effect notwithstanding anything
inconsistent therewith contained in any other law for the time being in force or in any instrument having
effect by virtue of any law other than this Act.
31. Power to modify provisions of other enactments in relation to International Financial
Services Centres.—(1) The Central Government may, by notification, direct that any of the provisions of
any other Central Act or any rules or regulations made thereunder or any notification or order issued or
direction given thereunder (other than the provisions relating to making of the rules or regulations)
specified in the notification—
(a) shall not apply to financial products,financialservices or financial institutions, as the case may be,
in an International Financial Services Centre; or
(b) shall apply to financial products, financial services or financial institutions, as the case may be,
in an International Financial Services Centre with such exceptions, modifications and adaptations, as
may be specified in the notification.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving
the issue of the notification or both Houses agree in making any modification in the notification, the
notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be
agreed upon by both the Houses.
32. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of this
Act, the Central Government may, by order, published in the Official Gazette, make such provisions not
inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of five years from the
commencement of this Act.
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(2) Every order made under this section shall be laid, as soon as may be after it is made, before each
House ofParliament.
33. Amendment to certain enactments.—The enactments specified in the Second Schedule shall be
amended in the manner specified therein.
34. Savings.— All rules and regulations made or purporting to have been made or all notifications
issued or purporting to have been issued under any Central Act relating to the financial products, financial
services or financial institutions, as the case may be, shall, in so far as they relate to matters for which
provision is made in this Act or the rules or regulations made or notification issued thereunder and are not
inconsistent therewith, be deemed to have been made or issued under this Act as if this Act had been in
force on the date on which such rules were made or notifications were issued and shall continue to be in
force unless and until they are superseded by any rules or regulations made or notifications issued under
this Act.