Holding of foreign exchange restricted: residents must not retain foreign funds received from abroad and must repatriate them.

Prohibition on holding foreign assets: Holding of foreign exchange by a person resident in India is generally prohibited; residents shall not acquire, hold, own, possess or transfer foreign exchange, foreign securities, or immovable property situated outside India except as expressly permitted by the Act. Where a resident receives foreign funds from abroad, the resident is required to surrender or repatriate those funds in accordance with the statute's prescribed mechanism.

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