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

A fintech promoter in GIFT City asks who is legally recognised as the regulator body corporate with perpetual succession and a common seal for the International Financial Services Centres. Under the IFSCA Act, 2019, how is the Authority constituted?

The IFSCA is a body corporate with perpetual succession and a common seal. It can enter contracts, hold and dispose of property, and sue and be sued in its own name, so it has independent legal personality under the Act.

  1. AAs a body corporate with perpetual succession and a common seal, able to sue and be sued in its own nameCorrect
  2. BAs a department of the Reserve Bank of India without separate legal personality
  3. CAs a statutory committee of SEBI that can sue only through the Central Government
  4. DAs a temporary body that ceases to exist when its first Chairperson's term ends

Explanation

Section 4 provides that the Authority is a body corporate having perpetual succession and a common seal, with power to contract, hold property, and sue and be sued by its name. The other options deny separate legal personality or perpetual succession, which the Act does not provide.

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