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CS Professional · IFSCA - Regulations, Listing and Compliances · IFSCA Ecosystem and Regulatory Framework

Due to a delay in the PFRDA's nomination, the IFSCA has functioned with one vacancy among its Members, and it passed an order during this time. A regulated entity challenges the order only on the ground that the Authority was not fully constituted. Which is the correct position?

The order stands. 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, so a challenge resting only on the unfilled PFRDA seat fails.

  1. AThe order is invalid because all Members under Section 5 must be in place
  2. BThe order is valid only if the Chairperson alone signed it
  3. CThe order is invalid unless ratified by the Central Government
  4. DThe order is not invalid merely because of a vacancy or defect in the Authority's constitutionCorrect

Explanation

Section 9 states that no act or proceeding of the Authority is invalid merely by reason of any vacancy or defect in its constitution or any defect in a member's appointment. The challenge based only on a vacancy therefore fails, and ratification is not required.

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