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FEMA
January 25, 2024

New Overseas Investment Rules — LRS Limit and Compliance Requirements

Under the updated FEMA Overseas Investment Rules, residents sending money abroad under the Liberalised Remittance Scheme (LRS) must now file Form OPI within 60 days of investment. Non-compliance attracts a penalty of 3 times the amount involved.

Tightening the regulatory landscape around the Liberalised Remittance Scheme (LRS), fresh FEMA regulations require resident Indians who make Overseas Portfolio Investments (OPI) to file Form OPI strictly within 60 days of making the transaction. Failure to adhere to these reporting norms carries severe consequences, with potential penalties scaled up to three times the un-reported investment sum. Authorized dealer banks have been tasked with monitoring and facilitating these compliances strictly.

Impact and Action Required

Given the rapidly evolving regulatory landscape, this update may significantly impact your standard compliance flows. Our analysts recommend immediately verifying your internal accounts against the new standards. Reach out to our specialized advisory desk for a custom consultation regarding this change.

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