Indian law bars gifting US or any foreign stocks bought under the RBI’s liberalised remittance scheme (LRS) to NRI individuals including their NRI children. Para 22(4) of the Master direction on overseas investment expressly prohibits any Indian resident to transfer their overseas investments to an NRI.
Mayank Arora, associate partner, Nangia Global, said to ET Wealth Online that the important point to note here is that the LRS requires sale proceeds of assets to be repatriated within a timeline of 180 days. The provision, thus, restricts in-direct outflow of funds.
-copy-29e15046.jpeg?w=600)
