Mumbai:
The Reserve Bank of India, which raised the permissible overseas remittance
limit to $100,000 per person under the liberalised remittance scheme, has now
expressly prohibited certain transactions under the scheme. The
RBI has clarified that such remittances are allowed under the scheme only in respect
of permissible current or capital account transactions. All other transactions
that are otherwise not permissible under FEMA are not allowed. An
RBI circular expressly prohibits any remittances in the nature of margin or margin
calls to overseas exchanges / overseas counter-party.RBI,
however, permits domestic entities with exposure to specified base metals to hedge
their price risk in international commodity
exchanges. The
directives come at a time when foreign currency brokers are approaching brokers
in India for tie-ups.
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