Module: | MODULE A: INTERNATIONAL BANKING
Q235: Consider the following statements regarding the trading of carbon credits within the international financial services centre:
Statement 1: Recognized stock exchanges within the centre are legally authorized to list and facilitate the trading of voluntary carbon credits, allowing global corporations to meet their environmental offset targets.
Statement 2: Entities physically located in the domestic tariff area of India are strictly prohibited by foreign exchange laws from purchasing these carbon credits on the centre's exchanges, even to meet domestic compliance requirements.
Which of the statements given above is or are INCORRECT?
Statement 2: Entities physically located in the domestic tariff area of India are strictly prohibited by foreign exchange laws from purchasing these carbon credits on the centre's exchanges, even to meet domestic compliance requirements.
Which of the statements given above is or are INCORRECT?
✅ Correct Answer: B
The question asks to identify the incorrect statement.
Statement 1 is a correct statement.
To position the zone as a global hub for sustainable finance, the unified regulator has officially permitted the listing and trading of voluntary carbon credits and other environmental attributes on its recognized international exchanges.
Statement 2 is the incorrect statement.
While the centre operates as an offshore foreign exchange jurisdiction, specific regulatory bridges have been built.
Domestic Indian entities located in the domestic tariff area are legally permitted to access the centre's exchanges specifically to purchase these listed carbon credits to meet their environmental, social, and governance compliance targets, subject to standard liberalized remittance guidelines and domestic central bank frameworks.
Statement 1 is a correct statement.
To position the zone as a global hub for sustainable finance, the unified regulator has officially permitted the listing and trading of voluntary carbon credits and other environmental attributes on its recognized international exchanges.
Statement 2 is the incorrect statement.
While the centre operates as an offshore foreign exchange jurisdiction, specific regulatory bridges have been built.
Domestic Indian entities located in the domestic tariff area are legally permitted to access the centre's exchanges specifically to purchase these listed carbon credits to meet their environmental, social, and governance compliance targets, subject to standard liberalized remittance guidelines and domestic central bank frameworks.