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CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries

Kiran Brokers holds an IFSCA registration as a capital market intermediary. It is found to have repeatedly breached IFSCA regulations and ignored directions. Which statement best describes IFSCA's position?

IFSCA can act against a registered intermediary that repeatedly breaches its regulations, including imposing penalties and suspending or cancelling registration after following due process and giving a hearing. It is not limited to advice and need not wait for the stock exchange.

  1. AIFSCA can only issue advice and has no power to act against a registered intermediary
  2. BIFSCA can take action against the intermediary, including penalties, and may suspend or cancel its registration after following due processCorrect
  3. COnly the stock exchange can act, and IFSCA must wait for its report
  4. DOnly the Central Government can cancel the registration of an intermediary

Explanation

IFSCA, as regulator, can inspect, issue directions, impose penalties and suspend or cancel registration after giving the intermediary an opportunity of being heard. It is not limited to advice, does not depend on the exchange, and cancellation does not rest solely with the Central Government.

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