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

IFSCA wishes to open a representative office at a city outside India to support its work. Under the IFSCA Act, 2019, what must it do?

IFSCA must obtain the prior approval of the Central Government before establishing offices at other places in India or outside India. The Act requires this approval in advance; neither post-facto intimation nor approval from other regulators is the stated requirement.

  1. AObtain the prior approval of the Central Government before establishing the officeCorrect
  2. BObtain approval from SEBI and RBI jointly
  3. CSimply notify Parliament after opening the office
  4. DNothing, since offices outside India need no approval

Explanation

Section 4(4) allows the Authority to establish offices at other places in India or outside India only with the prior approval of the Central Government. Approval from SEBI or RBI is not the statutory requirement, and informing Parliament afterwards does not satisfy the prior approval condition.

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