Meeting quorum rules permit at least two members to constitute a quorum where the Authority's total strength is below four, subject to the presence of at least one ex-officio member. The Chairperson may invite persons for advice or consultation after prior intimation to other members. Information concerning the Authority's functioning and meeting decisions may not be disclosed to the press or other public media by members, except by the Chairperson or a specifically authorised person.

Members of the International Financial Services Centres Authority must declare faithful performance of their duties and maintain secrecy concerning Authority affairs. They must not communicate information about the Authority or persons dealing with it to persons not legally entitled to receive it, or permit such communication. They must also prevent unauthorised inspection of or access to books, documents, and business information concerning persons having dealings with the Authority.

Affixation of the Authority's Common Seal requires prior authorisation through a resolution of the Authority. The seal may be affixed only in the presence of at least one member, who must sign the instrument to attest that presence. This signature is independent of any signature made by a witness to the instrument.

Regulation 15 empowers the Chairperson, whole-time members, and Chairperson-nominated officers to execute financial and business documents for the Authority. This includes dealing with negotiable instruments, securities, property title documents, bills of exchange, accounts, receipts, and connected instruments. Officers specifically authorised by the Chairperson may also sign and verify plaints, written statements, complaints, affidavits, petitions, and other documents connected with legal proceedings.

Execution of contracts by the Authority is permitted in writing through a member, officer, or other person acting under express or implied authorisation where written execution and signature are legally required. Such contracts may be varied or discharged in the same manner. Contract-related documents may be signed and verified by an officer authorised by the chairperson. Contracts executed in accordance with these requirements are valid and binding on the Authority.

The Chairperson must nominate an Authority officer of at least Grade 'D' as Secretary to keep custody of the common seal, attendance register, minutes book, and other meeting-related records. The Secretary is responsible for arranging meetings, recording minutes, and generally ensuring compliance with the meeting procedure regulations.

Every member must, before assuming duties, sign the prescribed declaration of fidelity and secrecy. The declaration requires strict secrecy regarding all transactions and related matters, and prohibits disclosure of information acquired in the discharge of duties unless disclosure is required or authorised by the Authority or by law.

Member disqualification disclosure requires a member to promptly inform the Authority upon becoming subject to any disqualification specified under section 7 of the Act. The Authority must inform the Central Government where it becomes aware that a member has incurred such disqualification.

Conflict-of-interest abstention requires every Authority member who is directly or indirectly concerned or interested in a matter before a meeting to disclose the nature of that interest promptly. The disclosure must be recorded in the Authority's proceedings, and the interested member must not participate in deliberations or decisions on that matter. Indirect interest includes interests held through relatives or by being a partner or director of the relevant concern.

Minutes of Authority meetings must be maintained in designated books, including binders containing duly numbered loose leaves. Copies of each meeting's proceedings must be circulated promptly to members for confirmation. Confirmed minutes must be signed by the Chairperson or the presiding member at the succeeding meeting and formally taken on record.

Leave of absence for Authority meetings may be granted by the Authority to a member who is not present at a meeting. Every grant of such leave must be recorded in the minutes of that meeting.

Quorum for transaction of business at a meeting of the Authority consists of four members. Questions before a meeting are decided by a majority of members present and voting. If votes are equally divided, the Chairperson, or in the Chairperson's absence the member presiding, exercises a second or casting vote.

Members must ordinarily receive at least seven working days' notice of meetings with agenda papers, subject to sufficient notice for emergency meetings. Decisions may be made by circulating an agenda. Business outside the convened agenda requires consent of the Chairperson or presiding member and a majority of members present. Meetings and member participation may occur through video conferencing or other audio-visual means, with electronic voting where necessary. Recorded transcripts of virtual proceedings must be retained until minutes are confirmed, and the secretariat must provide virtual participation facilities.

Authority meetings must be held at the time and place within India specified in the notice convening the meeting. The convening notice determines the stated venue and timing of each meeting.

Presiding over Authority meetings is vested in the Chairperson. If the Chairperson cannot attend for any reason, the members present must choose another member to preside over the meeting.

Meetings of the International Financial Services Centres Authority must be convened at least once in every quarter by the Chairperson or, in the Chairperson's absence, by a nominated member. Any three members may require the Chairperson to convene a meeting at any time. Where the Chairperson is unavailable, any three members may require the Secretary to convene the meeting.

Definitions governing Authority meeting procedures identify the Act, Authority, Chairperson, Member and Schedule. "Authority" comprises members constituted under the International Financial Services Centres Authority Act, 2019, while "Member" includes the Chairperson. Terms not defined in the regulations carry the meanings assigned under the Act.

International Financial Services Centres Authority (Procedure for Authority Meetings) Regulations, 2020 are made under the Authority's statutory power to regulate the procedure for its meetings. They establish the regulatory instrument governing Authority-meeting procedure and come into force on the date of publication in the Official Gazette.

Banking Units in International Financial Services Centres require a licence, minimum starting capital maintained on an unimpaired basis, home-regulator approval, and a Parent Bank liquidity undertaking. They must comply with prudential requirements on liquidity, leverage and exposure limits, while operating mainly in freely convertible foreign currencies. Eligible persons may maintain foreign currency accounts subject to prescribed conditions, and Banking Units may undertake lending, investment, trade finance, derivatives, foreign portfolio investor and clearing-related activities. Know Your Customer, anti-money laundering, reporting, record-maintenance and licensing-condition compliance are mandatory.

Documented share-sale proceeds cannot be treated as unexplained cash credit merely because the shares were identified as penny stocks. Purchase through a registered broker by cheque, demat-account holding and transfer, sale through a recognised stock exchange, and payment of securities transaction tax supported the genuineness of the transactions. Where no defects are found in these records and no material links the taxpayer to price rigging or accommodation entries, an investigation report containing only general penny-stock information is insufficient. The long-term capital-gains addition was therefore deleted.