Clarifications on Liberalized Remittance Scheme

The Reserve Bank of India (RBI) has clarified on various points on Liberalised Remittance Schemen (LRS), which are given as under: -

• In terms of the extant FEMA provisions LRS can be used to acquire both listed and unlisted shares of an overseas company.
• Resident individuals are permitted to make remittances for acquiring immovable property within the annual limit of USD 75000 for already contracted cases, i.e. only for those contracts which were entered into on or before the date of the circular, i.e., August 14, 2013, subject to satisfaction of the genuineness of the transactions by the AD bank. Such cases should be immediately reported post fact  to the Reserve Bank of India by the A D banks.