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CS Professional · IFSCA - Regulations, Listing and Compliances · IFSCA Ecosystem and Regulatory Framework

Mr. Sanjay Iyer, a non-ex officio Member of IFSCA, ceased to hold office last month. Eight months later, a bank in GIFT IFSC offers him a senior appointment. Under the IFSCA Act, 2019, what is the position?

He needs the previous approval of the Central Government. For two years after ceasing office, a non-ex officio Member cannot accept government employment or appointment in any financial institution in an IFSC without it, and eight months is well within that period.

  1. AHe may accept only with the previous approval of the Central Government, since the two-year restriction applies to appointment in any financial institution in an IFSCCorrect
  2. BHe may accept freely because the restriction lasts only six months
  3. CHe may accept with the approval of the Authority, which has the power to relax the restriction
  4. DHe may accept freely because the restriction covers only Central Government employment

Explanation

For two years after ceasing office, a non-ex officio Member cannot, without previous Central Government approval, accept employment under the Central or a State Government or appointment in any financial institution in the IFSCs. Eight months is within two years. The approval must come from the Central Government, not the Authority.

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