The International Financial Services Centres Authority (IFSCA) on Friday (20 February) released the framework to enable the aircraft operating lease business in India's International Financial Services Centres.
On 16 October 2020, the Centre on the recommendation of IFSCA had notified 'Aircraft lease' business as 'financial product' under the International Financial Services Centres Authority Act, 2019.
"Based on the interest shown by various participants and the feedback of various stakeholders received, a 'Framework for Aircraft Operating Leases' has been issued by IFSCA today," the Finance Ministry said in a statement.
"This will enable the aircraft operating lease business in IFSCs in India, the projected market size of which is more than USD 50 billion."
In her July 2019 Budget speech, Union Finance Minister Nirmala Sitharaman had said: "The time is ripe for India to enter into aircraft financing and leasing activities from Indian shores."
She had said that this is critical for "development of self-reliant aviation industry" and creating, "aspirational jobs in aviation finance, besides leveraging the business opportunities available in India's Financial Special Economic Zone, namely, International Financial Services Centre.
The International Financial Services Centres Authority (IFSCA) has been established on April 27, 2020 under the International Financial Services Centres Authority Act, 2019. It is headquartered at GIFT City, Gandhinagar in Gujarat.
As per the mandate, IFSCA is “a unified authority for the development and regulation of financial products, financial services and financial institutions in the International Financial Services Centre (IFSC) in India. At present, the GIFT IFSC is the maiden international financial services centre in India. Prior to the establishment of IFSCA, the domestic financial regulators, namely, RBI, SEBI, PFRDA and IRDAI regulated the business in IFSC.
As the dynamic nature of business in the IFSCs requires a high degree of inter-regulatory coordination within the financial sector, the IFSCA has been established as a unified regulator with a holistic vision in order to promote ease of doing business in IFSC and provide world class regulatory environment. The main objective of the IFSCA is to develop a strong global connect and focus on the needs of the Indian economy as well as to serve as an international financial platform for the entire region and the global economy as a whole.”
With IANS Inputs
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.