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CS Executive · Setting Up of Business, Industrial and Labour Laws · Financial Services Organization

Mehta Re-Assurance Ltd. is an insurer set up in the International Financial Services Centre (IFSC) at GIFT City. Under the Insurance Act, 1938, which authority exercises the powers of the Insurance Authority over financial products, services and institutions permitted in the IFSC?

The International Financial Services Centres Authority exercises these powers. Section 118A of the Insurance Act, 1938 excludes the insurance Authority's powers from an IFSC and gives them to the IFSCA for products, services and institutions permitted there.

  1. AThe Reserve Bank of India
  2. BThe Securities and Exchange Board of India
  3. CThe International Financial Services Centres AuthorityCorrect
  4. DThe Pension Fund Regulatory and Development Authority

Explanation

Section 118A of the Insurance Act, 1938 says the powers of the Insurance Authority do not extend to an IFSC. Those powers are exercisable by the International Financial Services Centres Authority, as far as regulation of products, services and institutions permitted in the IFSC is concerned. The RBI has no role under this section.

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