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Corporate Laws Central Ministry of Finance International Financial Services Centres Authority Act, 2019

Amendment to the 'Framework for Ship Leasing' and relevant circulars

07-Apr-2025 | CIRCULAR F. No. 496/IFSCA/FC/SLF/2025-26/01

IFSCA has issued Circular on Amendment to the 'Framework for Ship Leasing' and relevant circulars effective from 07th April, 2025.

By virtue of this circular, IFSCA has amended the clause 3.L on Currency of Conduct of Business in which
1. Lessor is required to raise invoice for permissible activities under framework in any foreign currency specified in the first schedule of IFSCA (Banking Regulations), 2020 and receive the payment in its foreign currency account held with an IFSC Banking Unit.
2. Lessor may open a SNRR account with authorised dealer in India for its business-related transactions outside IFSC.]
However, earlier the requirement to raise an invoice as mentioned above was not there.

Further, the restriction on undertaking transactions involving the transfer of ownership or leasehold rights has been added to clause 2 of the circular on Additional requirements for carrying out the permissible activities by Finance Company as a Lessor under 'Framework for Ship Leasing' by adding "in any single financial year." The restriction on para 2 shall not apply to a new ship or vessel acquired from a shipyard in India.

Kindly refer to the attached documents for more information.

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