Whenever any of the functionaries mentioned in Regulation 60 are embarked-
(a) in one of Indian Naval Ships on the occasion of an official visit- the proper distinguishing flag shall be hoisted at the fore whenever the functionary is receiving a salute to which he is entitled;
(b) in one of Indian Naval Ships for passage- the proper distinguishing falg with the approval of the Senior Naval Officer, may similarly be hoisted and be kept flying within the limit of the respective Governments, Mission or Command, provided the functionary be proceeding on the public service. The distinguishing flag of Consular Authorities shall be hoisted in boats only and not in ships, except when they are being saluted.
(c) in a boat for the purpose of paying visits of ceremony or on other official occasions-the proper distinguishing flag within the respective limits prescribed in clause (b) may be hoisted at the bow, but when the boat belongs to one of Indian Naval Ships, she shall have her white ensign flying;
(d) in Indian ships and boats, other than those of Indian Naval ships, such functionaries are, with the sanction of the owners or masters, authorized 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.