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CS Executive · Capital Market and Securities Laws · International Financial Services Centres Authority (IFSCA)

A challenge is raised that an order of IFSCA is void because one seat in its membership was vacant when the order was passed, and a member's appointment had a technical defect. What is the position under the IFSCA Act, 2019?

The order stands. Under the Act, no act or proceeding of the Authority is invalid merely because of a vacancy or defect in its constitution, or a defect in the appointment of a member. No ratification or re-passing is required.

  1. AThe order is not invalid merely because of the vacancy or the defect in appointmentCorrect
  2. BThe order is void until the vacancy is filled and the order re-passed
  3. CThe order is valid only if the Central Government ratifies it
  4. DThe order is invalid if the defective member voted on it

Explanation

Section 9 says no act or proceeding of the Authority is invalid merely because of a vacancy or defect in its constitution, or a defect in appointing a member. The distractors add conditions such as ratification or re-passing that the section does not impose.

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