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CS Professional · Banking and Insurance - Laws and Practice · Inspection, Investigation, Penalty and Appellate Procedure

On receiving an investigation report on Bharat Insurance Brokers Ltd, IRDAI is minded to cancel its registration. What must the Authority do before passing the written order of cancellation under Section 33(6)?

The Authority must first give the intermediary a reasonable opportunity to make a representation on the report, and only then pass a written order cancelling registration. The section does not require Central Government or court approval, and an appeal lies only after an order is made.

  1. AObtain prior approval of the Central Government
  2. BGive the intermediary such opportunity to make a representation on the report as the Authority considers reasonableCorrect
  3. CObtain a court order permitting the cancellation
  4. DWait for the intermediary to appeal to the Securities Appellate Tribunal

Explanation

Section 33(6) allows the Authority to act only after giving such opportunity to make a representation in connection with the report as seems reasonable to it. No prior Government or court approval is mentioned, and an appeal comes after the order.

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