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CS Professional · IFSCA - Regulations, Listing and Compliances · Fund Management Services

Ganga Funds IFSC proposes to appoint Mr. Iyer as a key managerial person. Iyer was recently convicted by a court for an offence involving moral turpitude. Which statement is correct?

The appointment should not be made. Key managerial personnel of an FME must be fit and proper, and a conviction for an offence involving moral turpitude counts against that standard. Experience, board confidence or an investor-type limitation does not cure it.

  1. AHe may be appointed if he has ten years of fund management experience
  2. BHe may be appointed if the board passes a resolution recording its confidence in him
  3. CHe may be appointed only if the fund is limited to accredited investors
  4. DHe is unlikely to meet the fit and proper requirement, so the appointment should not be madeCorrect

Explanation

Key managerial personnel of an FME must be fit and proper persons. A conviction for an offence involving moral turpitude counts against that standard. Experience, board confidence or an accredited-investor investor base cannot override it.

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