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Clarification on "indian party" in fema

Others 244 views 2 replies

khushi

student

26 Points Joined February 2014

Under FEMA, the definition of the term "Indian Party" does not include Individuals.

So, are the Obligations of the Indian Party mandatory for Individuals as well?

Also, what are the restrictions/prohibitions on an individual investing in JV/WOS abroad?

Replies (2)

Hi ,

Refer the faqs on odi along with the LRS scheme.

an individual can invest in jv or subsidiaries abroad.

the obligation will apply to individuals as well. for eg submission of share certificates , annual performance report etc.

also the odi form mentions Resident Individual / Indian Party.

so according to me the restrictions obligations etc. as applicable to IP equally applies to resident individual read with LRS Scheme.