Which of the following remittances is NOT allowed under RBI's Liberalised Remittance Scheme?
Question and options
Which of the following remittances is NOT allowed under RBI's Liberalised Remittance Scheme?
Purchase of shares of an overseas listed company
Purchase of immovable property abroad
A gift to a relative living abroad
Margin calls on an overseas exchange
Answer and explanation
Correct answer: D - Margin calls on an overseas exchange
RBI's Master Direction on the Liberalised Remittance Scheme expressly bars remittances for margins or margin calls to overseas exchanges or overseas counterparties. Investment in overseas listed shares, purchase of immovable property abroad and gifts to persons abroad are permitted capital or current account uses within the US$250,000 annual limit.
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