n NISM Certifications
VII NISM Series VII
Medium

The entities in IFSC are recognized as non-resident entities under FEMA regulations of the Reserve Bank of India. State whether True or False.

Practice question from NISM Series VII Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. True

    Correct answer

  2. B

    False

Why this is the answer

Entities in International Financial Services Centres (IFSCs) are treated as non-residents under FEMA, receiving tax exemptions such as STT, commodity transaction tax, dividend distribution tax, and capital gains waivers.

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NISM Series VII Mock Test 2