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

Following an IFSCA penalty order against a broker in an IFSC, the amount realised is received. Where must the sums realised by way of penalties or fines under the IFSCA Act, 2019 be credited?

All sums realised as penalties or fines under the IFSCA Act, 2019 are credited to the Consolidated Fund of India in Indian rupees. They do not go into the IFSCA Fund, which receives grants, fees and charges and sums decided by the Central Government.

  1. AThe International Financial Services Centres Authority Fund
  2. BThe Consolidated Fund of India in Indian rupeesCorrect
  3. CA reserve maintained by the stock exchange in the IFSC
  4. DThe Investor Protection Fund in foreign currency

Explanation

The Act requires all sums realised as penalties or fines to be credited to the Consolidated Fund of India in rupees. The Authority's Fund holds grants, fees and charges, not penalties, which is why the Fund option is wrong.

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