Skip to content

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

A custodian registered with IFSCA is penalised after an order finds it failed to furnish information the Authority called for during an inquiry. The custodian believes the order is wrong. What is the proper remedy?

The custodian should file an appeal before the statutory appellate forum within the prescribed time. IFSCA orders are binding and cannot be ignored, and neither an exchange nor the custodian's own board can set them aside.

  1. AIgnore the order since penalties are only recommendatory
  2. BAppeal against the order to the forum provided under the IFSCA Act framework within the prescribed timeCorrect
  3. CAsk the stock exchange to set aside the order
  4. DSeek an exemption from the intermediary's own board

Explanation

Orders of the Authority are binding, and an aggrieved person may challenge them through the statutory appellate route within the time allowed. Ignoring the order invites further action. Exchanges and the firm's own board have no power to set aside the Authority's orders.

Did you get it right without looking?

One question tells you little. A timed set on Capital Market Intermediaries shows your real accuracy, how long you take and where you lose marks.

Practise Capital Market IntermediariesFree diagnostic mock

More Capital Market Intermediaries questions