Section 61(d) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(d)in Indian ships and boats, other than those of Indian Naval ships, such functionaries are, with the sanction of the owners or masters, authorised to fly their proper distinguishing flags on the same occasions and within the same limits, and this regulation shall be deemed a sufficient warrant to the master under the Merchant Shipping Act, 1958 for so doing, but the permission to hoist such masthead flags indicative of the presence on board of any of these functionaries in no way affects or alters the character or status of the merchant ship in time of peace or in time of war, whether the Government of India is belligerent or neutral.
