Ancillary Services Addendum: Enabling Ship Broking and Voice Broking in International Financial Services Centres (IFSC)

Introduction

The International Financial Services Centres Authority (IFSCA) has introduced new measures to enable ancillary services in International Financial Services Centres (IFSCs). This article discusses the recent circulars issued by the IFSCA that enable ship broking and voice broking services within IFSCs. These services aim to facilitate the activities of ship lessors, lessees, and entities in the banking sector.

Enabling Ship Broking Services in IFSCs

Ship broking is a well-recognized global professional service in the shipping business. Ship brokers act as specialist intermediaries between two principals engaged in a contract related to a ship. Recognizing the importance of ship broking in facilitating ship leasing activities, the IFSCA, through a circular dated April 6, 2023, has enabled ship broking services within IFSCs. This enables ship lessors, lessees, and other entities involved in ship leasing to undertake permissible activities as per the framework of ship leasing.

Enabling Voice Broking Services in IFSCs

To complete the market for intermediaries providing support services to International Banking Units (IBUs) and other financial institutions within IFSCs, the IFSCA has enabled voice broking services. Voice broking refers to the act of bringing together buyers and sellers of financial assets for the purpose of executing transactions. In the circular dated April 6, 2023, the IFSCA has authorized the provision of voice broking services to entities within IFSCs or outside India, in relation to their banking business.

Conclusion

The IFSCA’s recent circulars enable ship broking and voice broking services within IFSCs. Ship broking services facilitate ship lessors, lessees, and other entities engaged in ship leasing activities to operate within the framework of ship leasing. Voice broking services complete the market for intermediaries supporting IBUs and financial institutions in IFSCs. These measures aim to enhance the efficiency and effectiveness of ancillary services in IFSCs, contributing to the overall growth and development of the financial ecosystem.
Keywords: ancillary services, ship broking, voice broking, IFSC, ship leasing, banking business

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