International Financial Services Centres Authority (IFSCA) has constituted a committee under the chairmanship of Vandana Aggarwal, former Senior Economic Advisor, Government of India, to examine global best practices in ship financing and leasing, identify opportunities and devise a roadmap to enable such activities from GIFT (Gujarat International Finance Tec) International Financial Services Centres (IFSC).
- The committee includes representatives from the central government, Gujarat Maritime Board and industry experts with domain knowledge.
Terms of Reference:
i.The committee will examine the existing legal, regulatory, tax and other applicable frameworks, identify the restrictions related to ship financing and leasing, and recommend specific measures regarding them to IFSCA.
ii.The committee is mandated to submit its recommendations to IFSCA within 3 months.
Objectives of IFSCA:
i.IFSCA aims to make GIFT IFSC an international hub for Ship Financing & Leasing activities by providing an enabling regulatory framework and facilitative environment.
ii.It intends to benefit shipowners, lessors, carriers, ship operators, ship management companies and other stakeholders in the maritime ecosystem through GIFT IFSC.
About Indian Coastline:
i.India is strategically located on the world’s shipping routes and has a large coastline of ~7,500 km and it also has 12 major and over 200 minor ports.
ii.As per the data of the Ministry of Shipping, 95 percent of India’s trading by volume and 70 percent by value is done through maritime transport.
Note – Indian coastline touches 9 states viz, Gujarat, Maharashtra, Goa, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha, West Bengal and 2 union territories such as Daman and Diu and Puducherry.
Recent Related News:
On May 25, 2021, The International Financial Services Centres Authority (IFSCA), the regulator of GIFT- City, constituted a 12-member expert committee on investment funds(IF) under the Chairmanship of Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Co. Ltd., to recommend a roadmap to promote IF at IFSC.
About International Financial Services Centres Authority (IFSCA):
Establishment – April 27, 2020, under IFSCA Act, 2019
Headquarters – GIFT City, Gandhinagar, Gujarat
Chairperson – Injeti Srinivas