The International Financial Services Centres Authority has issued a notification dated January 5, 2026, exercising powers under Section 12 of the International Financial Services Centres Authority Act, 2019, to classify operating leases—including hybrids of operating and financial leases—relating to oilfield equipment as a “financial product.” The notification clarifies that “oilfield equipment” refers to goods used in connection with oilfields as listed in Notification No. 3/2017–Central Tax (Rate) dated June 28, 2017, while “oilfield” carries the meaning assigned under the Oilfields (Regulation and Development) Act, 1948. By bringing such leasing arrangements within the ambit of financial products, the Authority enables regulated activity and oversight within International Financial Services Centres, aligning leasing structures for oilfield equipment with the broader financial regulatory framework. The notification takes effect from the date of its publication in the Official Gazette, providing immediate regulatory certainty for market participants engaging in leasing transactions involving oilfield equipment.
INTERNATIONAL FINANCIAL SERVICES CENTRES AUTHORITY
NOTIFICATION
Gandhinagar, the 5th January, 2026
F. No. IFSCA/GN/2026/001.—In exercise of the powers conferred by Section 12 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), read with notification number S.O. 5199(E), dated the December 14, 2021, issued by the Ministry of Finance, Government of India, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated the December 14, 2021, the Authority hereby specifies operating lease, including any hybrid of operating and financial lease, in respect of “oilfield equipment” as a financial product.
Explanation– For the purpose of this notification –
i. the expression “oilfield equipment” shall mean the goods, used in connection with an oilfield, as specified in the list annexed to the table provided in the Notification No. 3/2017-Central Tax (Rate), dated the June 28, 2017, issued by the Government of India, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), under G.S.R. 675(E).
ii. the expression “oilfield” shall have the same meaning as assigned to it in clause (e) of section 3 of the Oilfields (Regulation and Development) Act, 1948 (53 of 1948); and
2. This notification shall come into force on the date of publication in the Official Gazette.
PRAVEEN TRIVEDI, Executive Director
[ADVT.-III/4/Exty./597/2025-26]
