RBI Amends Foreign Exchange Regulations: Gifted Securities to Non-Residents Capped at $50,000 Annually Per Regulation 10.

The Reserve Bank of India issued an amendment to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000. Effective from September 15, 2011, this amendment alters Regulation 10 to stipulate that the value of securities transferred as a gift by a donor to any person residing outside India during a financial year must not exceed the rupee equivalent of US $50,000. The amendment clarifies that it will not adversely affect any person due to its retrospective application.

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