Section 25 of IFSCA : Section 25: Protection Of Action Taken In Good Faith

Explanation using Example

Imagine a scenario where the International Financial Services Centres Authority (IFSCA) implements a new regulation aimed at increasing financial transparency within the IFSC. A financial services company, believing that this new regulation negatively impacts its business, decides to sue the IFSCA for damages. However, the court dismisses the case because Section 25 of The International Financial Services Centres Authority Act, 2019, protects the IFSCA and its employees from legal action as long as their actions were done in good faith under the Act. In this case, since the IFSCA was acting within its mandate to regulate the financial services and was not acting with malice, Section 25 would apply, and the lawsuit would not proceed.