Consider the following statements with reference to the IFSCA Act:

1)The IFSCA Act provides for the establishment of an IFSC Authority Fund, which will be used to meet the expenses of the IFSCA.

2)The IFSCA Act has provisions for the establishment of a dispute resolution panel for resolving disputes arising from financial transactions in IFSCs.

3)The Fund will be maintained by the Gujarat government.

Select the correct answer using the code given below:

Solution

The IFSCA Act provides for the establishment of an IFSC Authority Fund, which will be used to meet the expenses of the IFSCA. The Fund will be maintained by the Central Government and will receive grants from the Government, fees and charges collected by the IFSCA, and other sources. The IFSCA Act also has provisions for the establishment of a dispute resolution panel for resolving disputes arising from financial transactions in IFSCs. The panel will consist of a chairperson and two members, and will have the power to determine the dispute in accordance with the law and practice applicable in IFSCs. Therefore, both statements 1 and 2 are correct.