The International Financial Services Centres Authority (IFSCA) on March 17, 2026, issued a consultation paper proposing a regulatory framework for Trust and Company Service Providers (TCSPs) under the IFSCA (TechFin and Ancillary Services) Regulations, 2025 and Special Purpose Vehicles (SPVs) under the IFSCA (Finance Company) Regulations, 2021 to strengthen the leasing ecosystem in IFSC. The proposal aims to enhance governance, operational efficiency, regulatory clarity, and global competitiveness of IFSC, aligning it with leading international aircraft leasing hubs.
The paper highlights that the aircraft leasing industry globally depends on specialised service providers and structured SPV frameworks supported by robust regulatory regimes. While India’s aviation market is rapidly expanding, a significant portion of aircraft leasing continues to be routed through offshore jurisdictions, resulting in foreign exchange outflows. Although IFSC has taken steps to develop an aircraft leasing ecosystem, the absence of a formal TCSP framework and integrated ancillary services limits scalability, institutional depth, and the ability to attract global investors.
To address these gaps, the proposed framework allows regulated TCSPs to provide incorporation, administration, governance, and compliance support to SPVs engaged in leasing activities. SPVs, registered as finance companies, will act as asset-owning entities, while TCSPs will deliver fiduciary and support services with strong AML/CFT and due diligence requirements. The framework seeks to build a comprehensive leasing ecosystem, promote capital inflows, reduce forex outflows, and position IFSC as a global aviation financing hub.
