CS Executive · Capital Market and Securities Laws · International Financial Services Centres Authority (IFSCA)
The Central Government wants to set up the International Financial Services Centres Authority under the IFSCA Act, 2019. Which statement correctly describes the legal character of the Authority as established under the Act?
The Authority is a body corporate with perpetual succession and a common seal. It can enter into contracts, acquire, hold and dispose of movable and immovable property, and sue and be sued in its own name, so it is a distinct legal entity.
- AA body corporate with perpetual succession and a common seal that can sue and be sued in its own nameCorrect
- BAn unincorporated advisory committee of the Ministry of Finance that cannot hold property
- CA company registered under the Companies Act with a limited life fixed by its articles
- DA statutory body that must act through the Central Government to sue or be sued
Explanation
Section 4(2) makes the Authority a body corporate with perpetual succession and a common seal, with power to contract, hold and dispose of property, and to sue and be sued by its name. The option describing an advisory committee is wrong because the Authority holds property and contracts in its own right.
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