IFSCA Notifies IFSCA (Finance Company) (Amendment) Regulations 2026
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Notification no. F. No. IFSCA/GN/2026/009; Dated: 05.05.2026
The International Financial Services Centres Authority (IFSCA) has notified the IFSCA (Finance Company) (Amendment) Regulations, 2026, introducing flexibility in the manner finance companies undertake leasing and financing activities.
1. SPV Route Permitted
Under the amended framework:
- A finance company or finance unit is now permitted to undertake leasing or financing activities through a Special Purpose Vehicle (SPV)
2. Capital Requirement for SPVs
- For leasing or financing activities carried out through an SPV. The SPV must maintain minimum owned fund or paid-up capital
- Such capital must be equivalent to the amount prescribed under the Companies Act, 2013 or such other amount as may be specified by IFSCA
3. Objective of the Amendment
The amendment aims to:
- Provide greater operational and structuring flexibility
- Facilitate efficient financing and leasing arrangements within IFSCs
- Promote ease of doing business and innovation in financial structuring
4. Regulatory Impact
The revised framework enables:
- Use of SPV structures for asset financing and leasing transactions
- Better risk segregation and transaction structuring flexibility
5. Conclusion
The amendment broadens the operational framework for finance companies in IFSCs by permitting SPV-based financing and leasing activities, while ensuring prudential safeguards through prescribed capital requirements.
Click Here To Read The Full Notification
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