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

A fintech lawyer is asked about the legal nature of the International Financial Services Centres Authority (IFSCA) under the IFSCA Act, 2019. Which statement correctly describes its status?

IFSCA is a statutory body corporate with perpetual succession and a common seal. It can enter into contracts, hold and dispose of property, and sue and be sued in its own name. It is established by Central Government notification, not incorporated as a company.

  1. AIt is a body corporate with perpetual succession and a common seal, and it can sue and be sued in its own nameCorrect
  2. BIt is an unincorporated advisory committee of the Central Government that cannot hold property
  3. CIt is a body corporate that can sue but cannot be sued without Government sanction
  4. DIt is a company incorporated under the Companies Act with share capital held by the Central Government

Explanation

The Act says the Authority is established by the Central Government by notification. It is a body corporate with perpetual succession and a common seal, with power to contract, hold and dispose of property, and to sue and be sued by its name. The options that restrict suing or call it a company or a committee contradict the Act.

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