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BarJournal INTERNATIONAL LAW

JULY/AUGUST 2015
feAtUre india’s next Big Business initiative

Impact of IFSC Bill 2019 on Foreign Investors

BY RENuKA RAMAN

he Indian Legislative System, First Reading: Generally, there is no debate on the the Rajya Sabha. The report of this committee
like that of the United States, introduction of a bill. The Minister of any House may be unanimous or a majority opinion. If it
is bicameral, with two levels of who is given the opportunity to introduce a bill, is a majority opinion, the minority is allowed to
scrutiny before approval of any does it by stating broad ideas; this process is called give the “Minutes of Dissent” in the report. The
T law. Parliament is the supreme “moving the bill.” If the House is in favor of the submission of the report by the Select Committee
legislative body of India, consisting of two introduction of the bill, then the bill is introduced or Joint Committee members is followed by a
Houses - Rajya Sabha (Council of States) and and moved (passed) to the next stage. detailed “Clause to Clause” discussion on the bill.
Lok Sabha (House of the People). The powers to
make law are at two levels: (a) Union (Federal) Second Reading: After introduction, the bill Third Reading: After the second reading, the
Government for the entire country and (b) State is subject to four alternative courses of action House is given sufficient time to study the clauses
Governments for their respective states. Articles by the originating House. The bill may be: (i) of the bill. Following review, the Minister of
107 (provisions as to introduction and passing of taken into consideration; (ii) forwarded to a the originating House moves that the “bill is
bills), 108 (Joint sitting of both Houses in certain Select Committee of the House; (iii) referred passed”. The bill is finally passed as a whole, and
cases), 109 (special procedure in respect of Money to a Joint Committee of both Houses, i.e. Rajya this marks the work of one House coming to an
Bills), 110 (Money Bills) and 111 (assent of bills) Sabha and Lok Sabha; or (iv) circulated / put on end. The bill is sent to the other House, where
of the Constitution of India provide powers to website for purpose of eliciting public opinion. the same three-reading procedure is followed.
central government to formulate laws of India Select Committee/ Joint Committee: The In the second House, there are three courses for
through Parliament. A Federal Bill needs to be Select Committee or the Joint Committee the bill: passed as it was passed in the originating
passed in both Houses of Parliament, and requires members are selected on the basis of expert House, amended, or totally rejected. In case of
assent of the President of India to become an Act. knowledge, and their members also include the amendment or rejection, the bill is returned to the
This descriptive flowchart provides a summary opposition. If it is a Joint Committee, then 2/3 originating House. If the second House does not
of the procedure for a bill to become law. members are from Lok Sabha and 1/3 are from return the bill for six months to the originating

introduction Publication first reading select
of the Bill in the gazette committee

first reading
second
second reading Bill sent to the third reading reading
other House
third reading

Acceptance/ President’s
rejection by LAW
origninating House Assent

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