How to be a Global Investor?
Liberalization Remittance Scheme:
“ The RBI is allowing you to remit abroad Rs. 1.75 Crore (250,000 USD) a year. Find out the best way to invest this money with WSA and how you can best utilize the limit.“
The Indian investor has reason to be happy. The need for global diversification today is critical, Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 250,000 per financial year (April – March) for any permissible Individuals account transaction. Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2,50,000 only.
The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and microeconomic conditions.
Investing in Global Markets
To purchase directly, you need to open a trading account with a local broker who offers this facility. Many Indian brokerages provide this window for domestic investors through tie-ups with foreign trading partners. Foreign players like WSA is another intermediary offering services here. These trading platforms provide assess to more than 36 exchanges around the world. The Indian Broker only acts as the intermediary. The actual buying and selling are done by foreign Broker licenced to trade in that market. To register, you will need to fill out an application form, fulfil KYC formalities.
All remittance is allowed under the scheme only for the permitted purpose and only in respect of permissible current and capital account transactions and subjects to other limitations of the scheme as notified from time to time.
Therefore, subject to the general limitation of the Scheme, all resident Indian Individual can remit funds under the scheme for the purpose of acquiring immovable properties, to invest in stock, shares, exchange-traded funds, debt instruments, stock options and OTC contracts outside India.