Skip to content

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

The Central Government notifies the establishment of the International Financial Services Centres Authority. A vendor, Meridian Supplies, wants to sue the Authority over an unpaid invoice and asks whether the Authority can be sued in its own name. Under the IFSCA Act, 2019, what is the position?

The Authority can be sued in its own name. The IFSCA Act, 2019 makes it a body corporate with perpetual succession and a common seal, able to contract, hold property and sue and be sued, so the vendor need not sue the Central Government.

  1. AIt can sue and be sued by its name, because it is a body corporate with perpetual succession and a common sealCorrect
  2. BIt cannot be sued directly; the suit must be filed against the Central Government
  3. CIt can be sued only through the Reserve Bank of India as its parent regulator
  4. DIt can be sued only after the Chairperson personally consents in writing

Explanation

The Act makes the Authority a body corporate with perpetual succession and a common seal, with power to contract, hold property, and sue and be sued by its name. Hence the vendor can proceed against the Authority itself. The suggestion that only the Central Government can be sued ignores its separate legal personality.

Did you get it right without looking?

One question tells you little. A timed set on IFSCA Ecosystem and Regulatory Framework shows your real accuracy, how long you take and where you lose marks.

Practise IFSCA Ecosystem and Regulatory FrameworkFree diagnostic mock

More IFSCA Ecosystem and Regulatory Framework questions