Laws and sections by number or title, due dates, pages, and updates.
Finance companies registered under the Framework for Ship Leasing must not undertake transactions involving the transfer of ownership or leasehold rights of a ship or ocean vessel from a resident in India to an entity set up in the International Financial Services Centre for the purpose of providing services solely to residents in India. The lessor may acquire a new ship or ocean vessel or enter into a new leasehold right contract with a person resident outside India to cater to residents in India. This circular comes into force immediately.
What you must do
Key dates
Law this touches
Who is affected
Exceptions
Ask about this circular
[Image omitted. See the official document.]
CIRCULAR
F. No 496/IFSCA/FC/SLF/2024-25/02
May 08, 2024
To,
All Finance Companies registered with the International Financial Services Centres Authority for undertaking ship leasing activity
Subject: Additional requirements for carrying out the permissible activities by Finance Company as a Lessor under ‘Framework for Ship Leasing’
Reference is drawn to the International Financial Services Centres Authority (Finance Company) Regulations, 2021 (‘FC Regulations’) and the ‘Framework for Ship Leasing’ (‘SL Framework’) issued thereunder vide Circular No. 496/IFSCA/FC/SLF/2022-23/001 dated August 16, 2022, as amended from time to time.
Provided that, the said applicant or lessor, may acquire a new ship or ocean vessel or enter into a new leasehold right contract with person resident outside India (as defined in clause w of section 2 of the Foreign Exchange Management Act, 1999) so as to cater to person resident in India.
This circular is issued in exercise of powers conferred by section 12 of the International Financial Services Centres Authority Act, 2019, read with regulation 10 of the FC Regulations and sub-clause Q of clause 3 of the SL Framework, and shall come into force with immediate effect.
A copy of this Circular is available on the website of the Authority at www.ifsca.gov.in/circular.
Yours faithfully
Riddhi Bhandari (General Manager) Department of Banking
