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CMA Final · Risk Management in Banking and Insurance · Structure and Type of Re-insurance

Under Section 6B of the Insurance Act, 1938, a scheme to bring an insurer's capital structure into conformity with section 6A is sanctioned by an officer appointed by the Authority. Where does an aggrieved shareholder prefer an appeal, and within what time?

The appeal lies to the Securities Appellate Tribunal within whose jurisdiction the insurer's registered office is situated, and must be filed within ninety days of the order sanctioning the scheme. The earlier High Court forum was replaced by the Tribunal.

  1. AHigh Court within 30 days
  2. BSecurities Appellate Tribunal within ninety days of the orderCorrect
  3. CCentral Government within 60 days
  4. DSecurities Appellate Tribunal within 30 days

Explanation

Section 6B(2) allows any aggrieved shareholder or person to appeal to the Securities Appellate Tribunal having jurisdiction over the insurer's registered office within ninety days of the sanctioning order. The High Court was substituted by the Tribunal. Sub-section (3) makes the decision final and binding.

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