The International Financial Services Centres Authority (IFSCA) on August 16, 2022 has issued Framework for Ship Lease.
The following has been stated namely: -
• An entity intending to undertake a ship lease in IFSC, shall be registered as a Finance Company/Unit.
• It permits an entity to set-up operations in IFSC in the form of a Company or a Limited Liability Partnership (LLP) or a Trust or a Branch.
• The Framework requires a ship lease transaction to be classified as a lease such that it is in accordance with the Indian Accounting Standards (Ind AS 116) on Leases.
• 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.
