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CS Professional · IFSCA - Regulations, Listing and Compliances · Banking Services and Finance Companies in IFSC

Skyline Aviation Capital plans to buy aircraft and lease them to airlines from GIFT IFSC. It wants to operate as a finance company. What is the correct first regulatory step?

The company should apply to IFSCA for registration as a Finance Company under the IFSCA (Finance Company) Regulations, 2021. Aircraft leasing is a permitted finance company activity, but only a registered entity may carry it out; RBI NBFC registration does not apply to IFSC units.

  1. ARegister as an NBFC with the RBI and then notify IFSCA
  2. BApply to IFSCA for registration as a Finance Company under the IFSCA (Finance Company) Regulations, 2021Correct
  3. CObtain a stock broker licence from a stock exchange
  4. DOperate freely, since leasing needs no registration in an IFSC

Explanation

Aircraft leasing is among the activities that can be undertaken by a finance company in the IFSC. The entity must be registered by IFSCA under the Finance Company Regulations. RBI NBFC registration is not the route for IFSC units, and unregistered operation is not allowed.

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