investing in securities under LRS

IFSCA has vide its circular dated 19th February, 2021 clarified that for resident individuals who want to open a current account in a banking unit situated in GIFT-IFSC, the minimum net worth criteria of USD1 million is not applicable. This is because the account is going to be opened for the purpose of routing the investment in securities under the Liberalised Remittance Scheme of the RBI. Only in such cases the minimum net worth criteria has been dispensed with.

Otherwise a qualified resident individual can open a current account with a banking unit at GIFT-IFSC if he has a minimum net worth of USD1 million. This is for the purpose of undertaking transactions which are either current account or capital account or a combination of both. These accounts are held in freely convertible currency.

Copy of the circular can be found here https://ifsca.gov.in/Viewer/Index/150

Leave a comment

Filed under banking laws

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s