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CS Executive · Setting Up of Business, Industrial and Labour Laws · Financial Services Organization

Which of the following entities is covered by the Central Government's power under section 2CA of the Insurance Act, 1938 to notify non-application of provisions in a Special Economic Zone?

An Indian Insurance Company carrying on insurance business in an SEZ is covered. Section 2CA applies to insurers, namely Indian insurance companies, insurance co-operative societies and bodies corporate referred to in section 2C(1)(c), not to banks, mutual funds or NBFCs.

  1. AAn Indian Insurance Company carrying on insurance business in an SEZCorrect
  2. BA commercial bank carrying on banking in an SEZ
  3. CA mutual fund registered with SEBI in an SEZ
  4. DAn NBFC lending in an SEZ

Explanation

Section 2CA refers to an insurer, being an Indian Insurance Company, insurance co-operative society or a body corporate referred to in section 2C(1)(c), carrying on insurance business in an SEZ. Banks, mutual funds and NBFCs are not insurers under this section.

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