Liberalised Remittance Scheme (LRS) updated
Reserve Bank of India has updated Master Circular on Liberalised Remittance Scheme (LRS) on April 12, 2017.
The new notification under Provision A(6)(iii) has added “acquisition of qualification shares of an overseas company for holding the post of Director; acquisition of shares of a foreign company towards professional services rendered or in lieu of Director’s remuneration” under the head of permissible capital account transactions by an individual under LRS.
The new amendment makes it possible for an Individual Resident to aquire qualification shares in a foreign corporation for the purposes of holding the post of Director or towards professional services rendered or in lieu of Director’s remuneration.