Tuesday, July 2, 2013

Investment abroad by Individuals in India

A person resident in India being an Individual may acquire foreign security up to USD 2,00,000 in a financial year.

Acquisition of shares in Lieu of Professional services rendered:
A resident individual may apply  the Reserve bank of India for permission to acquire shares in a foreign entity as a consideration in lieu of the professional services rendered  to the foreign entity.

Reserve Bank of India, may grant permission after considering the following facgors

-Credentials and net worth of the Individual and the nature of his profession.
- the extent of his forex earnings / balances in his EEFC and RFC account.
- Financial and business track record of the foreign entity.
- Potential for forex inflow to the county.
- Other likely benefits to the country.

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