Remittances to IFSCs under the Liberalised Remittance Scheme now permitted for IFSC securities investment, subject to compliance. Resident individuals are permitted to remit under the Liberalised Remittance Scheme (LRS) to make investments in securities within International Financial Services Centres (IFSCs) in India via AD Category I banks; investments must be in securities of IFSC entities only. Individuals may open non interest bearing Foreign Currency Accounts in IFSCs for such investments, subject to prompt repatriation of idle funds to domestic INR accounts and prohibition on using FCAs for domestic transactions. AD Category I banks must ensure compliance with LRS terms, reporting requirements and FEMA regulations, with contraventions addressed under RBI compounding rules.
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Provisions expressly mentioned in the judgment/order text.
Remittances to IFSCs under the Liberalised Remittance Scheme now permitted for IFSC securities investment, subject to compliance.
Resident individuals are permitted to remit under the Liberalised Remittance Scheme (LRS) to make investments in securities within International Financial Services Centres (IFSCs) in India via AD Category I banks; investments must be in securities of IFSC entities only. Individuals may open non interest bearing Foreign Currency Accounts in IFSCs for such investments, subject to prompt repatriation of idle funds to domestic INR accounts and prohibition on using FCAs for domestic transactions. AD Category I banks must ensure compliance with LRS terms, reporting requirements and FEMA regulations, with contraventions addressed under RBI compounding rules.
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