International Financial Services Centres Act Quiz
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Questions and Answers

What is the establishment date of the International Financial Services Centres Authority?

  • 5th June 2020
  • 27th April 2020 (correct)
  • 15th March 2020
  • 1st January 2020

    • Where is the head office of the International Financial Services Centres Authority located?

  • Mumbai, Maharashtra
  • Delhi
  • Bengaluru, Karnataka
  • Gandhinagar, Gujarat (correct)

    • How many members are there in the Authority as per the composition?

  • 10 members
  • 7 members (correct)
  • 9 members
  • 5 members

    • Which of the following is NOT an ex officio member of the Authority?

    <p>A representative from the Ministry of Finance</p> Signup and view all the answers

    What is the maximum age limit for the Chairperson of the Authority?

    <p>65 years</p> Signup and view all the answers

    What is the term length for the Chairperson and Members of the Authority?

    <p>3 years</p> Signup and view all the answers

    Which of the following statements is true regarding the resignation of Members?

    <p>Members must give a written notice of at least three months.</p> Signup and view all the answers

    Who appoints two other Members of the Authority on the recommendation of a Selection Committee?

    <p>The Central Government</p> Signup and view all the answers

    What is the short title of the act established in 2019?

    <p>International Financial Services Centres Authority Act</p> Signup and view all the answers

    When did the provisions of the International Financial Services Centres Authority Act, 2019 come into force?

    <p>21st August, 2020</p> Signup and view all the answers

    Which entities does the act specifically apply to?

    <p>International Financial Services Centres</p> Signup and view all the answers

    Which of the following is NOT defined as a financial product under the act?

    <p>Real estate investments</p> Signup and view all the answers

    What does the term 'financial institution' refer to in the context of the act?

    <p>A unit set up in an International Financial Services Centre engaging in financial services</p> Signup and view all the answers

    Which of the following financial products includes aircraft lease?

    <p>Securities</p> Signup and view all the answers

    Who has the authority to notify any new financial products as per the act?

    <p>The Central Government</p> Signup and view all the answers

    Which aspect of the act pertains to foreign currency contracts?

    <p>Contracts must involve immediate exchanges</p> Signup and view all the answers

    What is the cooling-off period for a member after ceasing to hold office?

    <p>2 years</p> Signup and view all the answers

    Which of the following is NOT a valid reason for the Central Government to remove a member from office?

    <p>Lack of attendance</p> Signup and view all the answers

    Under what condition can a member be removed for having acquired financial interests?

    <p>If it negatively affects their duties</p> Signup and view all the answers

    What is the minimum number of members required to convene a meeting of the Authority?

    <p>4 members</p> Signup and view all the answers

    How much notice is required for a meeting of the Authority?

    <p>7 working days</p> Signup and view all the answers

    Who has the casting vote in case of a tie during a meeting resolution?

    <p>The Chairperson</p> Signup and view all the answers

    Which of the following is a requirement for an emergency meeting to be convened?

    <p>No prior notice needed</p> Signup and view all the answers

    What must a member be given before being removed under clauses related to abuse of position?

    <p>A reasonable opportunity to be heard</p> Signup and view all the answers

    Which Act was amended in 1999 concerning insurance regulation?

    <p>The Insurance Regulatory And Development Authority Act</p> Signup and view all the answers

    What is the significance of the rules and regulations made under central acts as per the mentioned content?

    <p>They are deemed to have been made under the new Act if consistent.</p> Signup and view all the answers

    Which of the following acts was amended in 2006?

    <p>The Government Securities Act</p> Signup and view all the answers

    Which Act pertains specifically to the regulation of credit information companies?

    <p>The Credit Information Companies (Regulation) Act</p> Signup and view all the answers

    What amendment was made in 2013 according to the content provided?

    <p>The Pension Fund Regulatory And Development Authority Act</p> Signup and view all the answers

    What does the Pension Fund Regulatory and Development Authority Act, 2013 specify about penalties and fines?

    <p>They should be credited to the Consolidated Fund of India in Indian rupees.</p> Signup and view all the answers

    Who is responsible for maintaining and auditing the accounts of the Authority?

    <p>The Comptroller and Auditor-General of India</p> Signup and view all the answers

    Which of the following is a fund created under the Pension Fund Regulatory and Development Authority Act, 2013?

    <p>The International Financial Services Centres Authority Fund</p> Signup and view all the answers

    What can the Central Government do after making appropriations by law concerning the Authority?

    <p>Make grants to the Authority.</p> Signup and view all the answers

    How is the foreign currency equivalent of imposed penalties determined?

    <p>At the rate notified by the Reserve Bank of India on the order date.</p> Signup and view all the answers

    For what purposes can the funds from the International Financial Services Centres Authority Fund be utilized?

    <p>Meeting salaries and operational expenses of the Authority.</p> Signup and view all the answers

    What must the Authority do in terms of its financial record keeping?

    <p>Maintain proper accounts and prepare an annual statement.</p> Signup and view all the answers

    What type of appropriations are the grants to the Authority made by the Central Government based on?

    <p>Mandatory laws passed by Parliament.</p> Signup and view all the answers

    Study Notes

    International Financial Services Centres Authority Act, 2019

    • Act known as the International Financial Services Centres Authority Act, 2019.
    • Effective dates: 27 April 2020, 21 August 2020, and 29 September 2020.
    • Applicable to International Financial Services Centres set up under the Special Economic Zones Act, 2005.

    Definitions

    • Financial Institution: A unit in an International Financial Services Centre providing financial services for various financial products.
    • Financial Products include:
      • Securities
      • Insurance contracts
      • Deposits
      • Credit arrangements
      • Foreign currency contracts (excluding immediate exchange)
      • Aircraft leases (operating and financial)
      • Other notified products by the Central Government.

    Authority Composition

    • Headquartered in Gandhinagar, Gujarat.
    • Authority consists of:
      • A Chairperson.
      • One member from each of the following:
        • Reserve Bank of India
        • Securities and Exchange Board of India
        • Insurance Regulatory and Development Authority of India
        • Pension Fund Regulatory and Development Authority
      • Two members from the Ministry of Finance.
      • Two additional members appointed by the Central Government.

    Terms of Office

    • Chairperson and members serve a term of 3 years with reappointment eligibility.
    • Maximum age limits: Chairperson - 65 years, Whole-time member - 62 years.
    • Members may resign with 3 months' notice or be removed for specific reasons, such as insolvency or moral turpitude.

    Meetings

    • Authority must meet at least quarterly.
    • Notice period for meetings is 7 working days; quorum requires 4 members.
    • Decisions made by majority vote, with a casting vote for the Chairperson in case of ties.

    Finance

    • Central Government can provide grants to the Authority for purposes outlined in the Act.
    • An International Financial Services Centres Authority Fund is established, funded by:
      • Grants, fees, and charges.
      • Other funds determined by the Central Government.
    • Fund applications include salaries, allowances, and operational expenses of the Authority.

    Accounts and Audit

    • Authority required to maintain proper accounts and relevant records.
    • Annual accounts to be audited by the Comptroller and Auditor-General of India.

    Amendments

    • Amendments are made to several Acts, including:
      • Insurance Regulatory and Development Authority Act, 1999
      • Foreign Exchange Management Act, 1999
      • Credit Information Companies (Regulation) Act, 2005
      • Government Securities Act, 2006
      • Payment and Settlement Systems Act, 2007
      • Pension Fund Regulatory and Development Authority Act, 2013.
    • Existing rules and regulations related to financial products and services continue in force under this Act, unless superseded.

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    Description

    Test your knowledge of the International Financial Services Centres Authority Act, 2019. This quiz covers the key aspects and preliminary sections of the act, providing a comprehensive overview of its provisions and implications for financial services. Perfect for students and professionals in the finance sector.

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