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

Tara Leasing Pvt Ltd, an Indian company, wants to carry on ship leasing from GIFT IFSC. Under the IFSCA (Finance Company) Regulations, 2021, which entity type is it seeking to set up as a Finance Company?

The company must be registered with IFSCA as a Finance Company operating through an IFSC unit. Finance Company Regulations 2021 govern financing activities such as ship leasing in GIFT IFSC, so RBI NBFC registration is not the applicable route for these IFSC operations.

  1. AA Finance Company registered with IFSCA and operating through a unit in the IFSCCorrect
  2. BA non-banking financial company registered with the RBI
  3. CA scheduled commercial bank licensed by the RBI
  4. DA housing finance company registered with the NHB

Explanation

Under the IFSCA (Finance Company) Regulations, 2021, entities carrying on specified financing activities such as lease financing from an IFSC must be registered with IFSCA as Finance Companies. RBI-registered NBFC status is not the route for IFSC operations, so the NBFC option is wrong.

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