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CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries

A capital market intermediary registered with IFSCA in GIFT IFSC receives a notice stating that IFSCA intends to inspect its books, records and premises to check regulatory compliance. The compliance officer asks whether the intermediary must cooperate. Which position is correct?

The intermediary must allow the IFSCA inspecting officer access to its books, records and premises and cooperate reasonably. Registration brings a duty to submit to inspection, so it cannot demand board approval, select which records to show, or fix its own timing.

  1. AThe intermediary may refuse access until the notice is approved by its board of directors
  2. BThe intermediary must give the inspecting officer access to its records and premises and extend reasonable cooperationCorrect
  3. CThe intermediary need only produce records that it chooses to treat as relevant
  4. DThe intermediary may insist that inspection be done only at the end of its financial year

Explanation

A registered intermediary is under a duty to allow the Authority's inspecting officer to examine its books, records and premises and to cooperate. It cannot make access conditional on its own board approval or choose which records to show. Option C is wrong because selective production defeats the purpose of an inspection.

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