The International Financial Services Centres Authority (IFSCA) on May 08, 2024, issued a circular regarding the Additional requirements for carrying out the permissible activities by the Finance Company as a Lessor under the Framework for Ship Leasing.
It is hereby specified that an applicant under the SL Framework or a lessor, who has obtained a Certificate of Registration (CoR) under Regulation 3 of the International Financial Services Centres Authority (Finance Company) Regulations, 2021, shall not undertake transactions that involve transfer, in any form, of the ownership and/or leasehold right of a ship or ocean vessel from a person resident in India (as defined in clause v of section 2 of the Foreign Exchange Management Act, 1999) to an entity set up in the International Financial Services Centre (‘IFSC’), to provide services solely to person resident in India.
Provided that, the said applicant or lessor, may acquire a new ship or ocean vessel or enter into a new leasehold right contract with a person resident outside India (as defined in clause w of section 2 of the Foreign Exchange Management Act, 1999) to cater to a person resident in India.
[Circular No. 496/IFSCA/FC/SLF/2024-25/001]
