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CS Professional · IFSCA - Regulations, Listing and Compliances · Fund Management Services

Rohan Wealth LLP applied to IFSCA for authorisation as an FME. During scrutiny, IFSCA finds that its principal promoter was earlier convicted of an offence involving moral turpitude. Which consideration is most directly relevant to IFSCA's decision?

The relevant test is the fit and proper person criteria. IFSCA grants authorisation or registration only if the applicant and its key persons have integrity and a clean record. A conviction involving moral turpitude weighs heavily against the applicant, whatever its qualifications or offices.

  1. AWhether the applicant and its key persons meet the fit and proper person criteriaCorrect
  2. BWhether the applicant has more than one office in India
  3. CWhether the promoter holds a degree in finance
  4. DWhether the applicant has already raised funds from investors

Explanation

IFSCA grants authorisation or registration only if the applicant and its associated persons satisfy the fit and proper criteria, which take into account integrity and past conduct such as convictions for moral turpitude. Educational qualifications and prior fund-raising are not the central test, and a conviction of this kind can lead to rejection.

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