The International Financial Services Centres Authority (IFSCA) on February 26, 2025, updated the Framework for Aircraft Lease.
The Government of India vide Gazette Notification number S.O. 3652(E) dated October 16, 2020, has notified aircraft lease, including operating and financial lease and any hybrid of operating and financial lease of aircraft or helicopter and engines of aircraft or helicopter or any other part thereof, as a ‘financial product’.
The Government of India vide Gazette Notification number S.O.5199 (E) dated December 14, 2021, has notified operating lease, including any hybrid of operating and financial lease of such product or equipment as may be specified by International Financial Services Centres Authority, as a ‘financial product’.
The following framework for entities to get registered under Finance Company Regulations as a ‘Finance Company’ or a ‘Finance Unit’ for undertaking aircraft lease transactions have been stated:
• This framework shall apply to all applicants desirous of seeking registration for one or more of the permissible activities specified under this Circular.
• Eligibility and Registration Requirement
• Application for Registration
• Permissible Activities
• Capital Requirement
• Fees
• Permissible Activities under financial lease
• Capital Requirement for Lessors undertaking financial lease
• Prudential and Other Requirements
For more details, please refer to the document provided below.
[File No. 172/IFSCA/Finance Company Regulations/2022-23/01]
