The International Financial Services Centres Authority (IFSCA), on 16th August, 2022, issued a press release regarding framework for ship lease. The IFSCA, after evaluating the potential of ship leasing in the context of “Atma Nirbhar Bharat”, issued a framework to provide an enabling regulatory framework for promoting GIFT IFSC as a hub for international ship leasing and financing business.
The Framework was issued on August 12, 2022 by the IFSCA. It covers guidelines on operating lease, financial lease and a hybrid of operating and financial lease of a ship or ocean vessel, engine of a ship or ocean vessel, or any other part thereof. The entity intending to undertake ship lease in IFSC shall be registered as a Finance Company/Unit as per the IFSCA (Finance Company) Regulations, 2021, among other conditions necessary to be satisfied.
The Framework details out the requisite capital and prudential requirements based on the nature of lease being undertaken by the entity i.e. operating lease or financial lease for ships or ocean vessels. The entity registered as Finance Companies / Units shall at all times be guided by the IFSCA (Finance Company) Regulations, 2021.
