Action by the Authority upon inspection.
Regulation 142
Action by the Authority upon inspection.
IFSCA (Fund Management) Regulations, 2025No change in 2026Chapter IX · Inspection and Audit
Chapter IX · Inspection and Audit
Regulation 142 – Action by the Authority upon inspection.
Critical importance about 3 min
Inspection, audit & enforcement: What happens in an IFSCA inspection, and the grounds for action against an FME.
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In plain English
After considering the inspection report and giving a hearing, the Authority may direct the FME (or its officers) as it sees fit, including barring new schemes or fund-raising, freezing or requiring disposal of assets, requiring refunds to investors, or barring market access.
In plain English
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The rule, in its own words
Read the exact text of Regulation 142
142. The Authority may, after consideration of the inspection report and after giving reasonable opportunity of being heard to the FME and/ or its partner, designated partner, trustee, director, chairperson, CEO, KMPs, and any agent, etc., issue such direction as it deems fit in the interest of financial market or the investors, including directions in the nature of:-
(a) requiring FME not to launch new schemes or raise money from investors for a particular period;
(b) prohibiting the person concerned from disposing of any of the properties of the fund or scheme acquired in violation of these regulations;
(c) requiring the person concerned to dispose of the assets of the fund or scheme in a…
Show the full text
142. The Authority may, after consideration of the inspection report and after giving reasonable opportunity of being heard to the FME and/ or its partner, designated partner, trustee, director, chairperson, CEO, KMPs, and any agent, etc., issue such direction as it deems fit in the interest of financial market or the investors, including directions in the nature of:-
(a) requiring FME not to launch new schemes or raise money from investors for a particular period;
(b) prohibiting the person concerned from disposing of any of the properties of the fund or scheme acquired in violation of these regulations;
(c) requiring the person concerned to dispose of the assets of the fund or scheme in a manner as per the directions;
(d) requiring the person concerned to refund any money or the assets to the concerned investors, along with or without interest, collected under the scheme;
(e) prohibiting the person concerned from operating in the financial market or from accessing the financial market for a specified period;
(f) any other direction(s), as the Authority may deem appropriate.
Statutory text — Principal Regulations, 2025 (as amended to 30 January 2026), consolidated where amended. The notified Gazette text prevails. Tap a highlighted word for how it functions.
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What this means in practice
Compliance actions
- Applies to
- All FME categories
- Frequency
- Event-driven
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Where it connects
Read alongside
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Check yourself
Quiz Centre
Test yourself on Regulation 142
3 questions in the unified bank test this regulation. Each explains every option and cites the provision.
After an inspection and hearing, the Authority may direct an FME to do which of the following?
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Your notes
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Inspection, audit & enforcement