The International Financial Services Centres Authority on 18th May 2022 has notified the Framework for Aircraft lease which shall apply to all applicants desirous of seeking registration for one or more of the permissible activities specified under this framework.
A Lessor shall be permitted to undertake all or any of the following activities:
- Operating lease for an aircraft lease arrangement including sale and lease back, purchase, novation, transfer, assignment, and such other similar transactions in relation to aircraft lease;
- Operating lease for an aircraft ground support equipment;
- Asset Management Support Services for assets owned or leased out by the entity or by its wholly owned subsidiary (ies) set up in IFSCs in India;
- any other related activity with the prior approval of the IFSCA.
An applicant desirous of undertaking permissible activities in IFSCs as a Lessor shall meet the eligibility criteria and other requirements as specified under the Finance Company Regulations including the following:
(a) The applicant shall set-up operations in IFSC in the form of a Company or a Limited Liability Partnership (LLP) or a Trust or in any other form as may be specified by the IFSCA from time to time.
(b) In case the applicant is a company, the ‘promoter’, as defined in the Companies Act,2013,of the applicant shall be located in a Financial Action Task Force compliant jurisdiction.
The Lessor shall maintain its books of accounts, records, and documents as required under applicable law. The books of accounts and other financial information shall be maintained in any such freely convertible currency.
Further, if a Lessor fails to fulfil the conditions subject to which the registration is granted, the IFSCA may take any action as it may deem fit, after giving an opportunity of making submissions, if any.
