Skip to content

CS Professional · IFSCA - Regulations, Listing and Compliances · Capital Market Intermediaries

Zenith Securities IFSC Ltd, a trading member registered with IFSCA, is told by IFSCA that its books and records at its GIFT City office will be examined. Which statement best describes the legal position?

IFSCA can inspect a registered intermediary's books, records and premises through an inspecting authority, and the intermediary must cooperate and provide access. No court warrant or client complaint is required, and the IFSC unit itself is subject to inspection.

  1. AIFSCA may inspect the intermediary's books, records and premises through an inspecting authority, and the intermediary must cooperate and give accessCorrect
  2. BIFSCA can inspect only after a court issues a warrant
  3. CInspection is allowed only if a client files a written complaint first
  4. DInspection applies only to the parent entity in India and not to the IFSC unit

Explanation

Under the IFSCA framework, the Authority may appoint an inspecting authority to examine the books, records and premises of a registered intermediary. The intermediary is expected to give access and cooperate. A court warrant or a client complaint is not a precondition, so those options are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Capital Market Intermediaries shows your real accuracy, how long you take and where you lose marks.

Practise Capital Market IntermediariesFree diagnostic mock

More Capital Market Intermediaries questions