4. Establishment and incorporation of Authority.—(1) The Central Government shall, by
notification, for the purposes of this Act, establish an Authority by the name of the International
Financial Services Centres Authority.
(2) TheAuthority shall be a body corporate having perpetualsuccession and a common seal, and subject
to the provisions of this Act, with power to enter into and execute contracts, acquire, hold and dispose of
property, both movable and immovable, and shall, by the said name, sue and be sued.
(3) The head office of the Authority shall be at such place as the Central Government may, by
notification,decide.
(4) The Authority may, with the prior approval of the Central Government, establish its offices at other
places in India or outside India.
5. Composition of Authority.—(1) The Authority shall consist of the following Members, to be
appointed by the Central Government,namely:—
(a) a Chairperson;
(b) one Member each to be nominated by—
(i) the Reserve Bank of India, ex officio;
(ii) the Securities and Exchange Board of India, ex officio;
(iii) the Insurance Regulatory and Development Authority of India, ex officio; and
(iv) the Pension Fund Regulatory and DevelopmentAuthority, ex officio;
(c) two Members, from amongst the officials of the Ministry dealing with Finance, to be nominated by
the Central Government, ex officio; and
(d) two other Members to be appointed by the Central Government on the recommendation of a
Selection Committee.
(2) The Chairperson shall be a whole-time Member and other Members referred to in clause (d) of
sub-section (1) may be appointed as whole-time or part-time Members as the Central Government may
deem fit.
(3) The Members shall be persons of ability, integrity and standing who have shown capacity in
dealing with matters relating to financial sectors or have special knowledge or experience of law,finance,
economics, accountancy, administration or in any other discipline which in the opinion of the Central
Government, shall be useful to the Authority.
(4) The Selection Committee referred to in clause (d) of sub-section (1) shall consist of such Members
and constituted by the Central Government in such manner as may be prescribed.
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6. Terms of office and conditions of service of Chairperson and other Members.—(1) The
Chairperson and a Member shall hold office for a term of three years from the date on which he enters upon
his office and shall be eligible for re-appointment:
Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five
years or as a whole-time member after he has attained the age of sixty-two years.
(2) The salaries and allowances payable to, and other terms and conditions of service of, the Members,
other than ex officio Members, shall be such as may be prescribed.
(3) Notwithstanding anything in sub-section (1), a Member may—
(a) resign from his office by giving in writing to the Central Government a notice of not less than
three months; or
(b) be removed from his office in accordance with the provisions of section 7.
(4) No Member, other than ex officio Member, shall, for a period of two years from the date on which
they cease to hold office as such, except with the previous approval of the Central Government, accept—
(a) any employment either under the Central Government or under any State Government; or
(b) appointment in any financial institution in the International Financial Services Centres.
7. Removal of Member from office.—The Central Government may remove from office a Member,
who—
(a) is, or at any time has been, adjudged as insolvent; or
(b) has become physically or mentally incapable of acting as a Member; or
(c) has been convicted of an offence which in the opinion of the Central Government involves
moral turpitude;or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a
Member; or
(e) hasso abused his position so asto render his continuance in office detrimental to public interest:
Provided that no Member shall be removed from office under clause (d) or clause (e) unless he
has been given a reasonable opportunity of being heard in the matter.
8. Meetings of Authority.—(1) The Authority shall meet at such times and places, and shall observe
such rules of procedure in regard to the transaction of business at its meetings (including quorum at such
meetings) as may be specified by regulations.
(2) The Chairperson, if for any reason, he is unable to attend a meeting of the Authority, any other
Member chosen by the Members present from amongst themselves at the meeting shall preside at the
meeting.
(3) All questions which come up before any meeting of the Authority shall be decided by a majority of
votes of the Members present and voting, and, in the event of an equality of votes, the Chairperson, or in his
absence, the person presiding, shall have a casting vote.
(4) Any Member who has any direct or indirect interest in any matter likely to come up for consideration
at a meeting of the Authority shall, as soon as possible after the relevant circumstances have come to his
knowledge, disclose in writing, the nature of his interest at such meeting and such disclosure shall be
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recorded in the proceedings of the Authority and such Member shall not take part in any deliberation or
decision of theAuthority with respect to that matter.
9. Vacancies etc., not to invalidate proceedings of Authority.—No act or proceeding of the
Authority shall be invalid merely by reason of,—
(a) any vacancy or defect, in the constitution of the Authority; or
(b) any defect in the appointment of a person as a member of the authority.
10. Administrative powers of Chairperson.—the Chairperson shall have the powers of general
superintendence anddirection in respect of all administrative matters of the Authority.
11. Offices and other employees of Authority.—(1) the Authority may appoint such officers and
other employees as it considers necessary for the efficient discharge of its functions under this act.
(2) the salaries and allowances payable to, and other terms and conditions of service of, officers and
other employees of the Authority appointed under sub-section (1) shall be such as may be specified by
regulations.