IFSCA Specifies ‘Operating Lease’ as a Financial Product

Notification no. IFSCA/2022-23/GN/037; dated: 11.04.2023

IFSCA has included ‘operating lease’ (including a hybrid of operating and financial lease, in respect of ‘Aviation training simulation devices) under the definition of financial product as specified in the Act. The notification shall be effective from 11.04.2023.

Currently, the definition of “financial product” is defined under section 3(d) of the IFSCA Act. The term ‘financial product’ includes:

(a) Securities;

(b) contracts of insurance, deposits;

(c) credit arrangements;

(d) foreign currency contracts (other than contracts to exchange one currency for another that are to be settled immediately); and

(e) Any other product or instrument that may be notified by the Central Government.

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