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Build A Global Portfolio using LRS

Published Oct 6, 2020

Liberalized Remittance Scheme (LRS) of the Reserve Bank of India (RBI) allows resident individuals to remit a certain amount of money during a financial year to another country for investment and expenditure.

According to the prevailing regulations, resident individuals may remit up to $250,000 per financial year. This money can be used to pay expenses related to travel (private or for business), medical treatment, study, gifts and donations, maintenance of close relatives and so on.

Apart from this, the remitted amount can also be invested in shares, debt instruments, and immovable properties overseas. Individuals can also open, maintain and hold foreign currency accounts with banks outside India for carrying out transactions permitted under this scheme.

Eligible Investors: All resident individuals, including minors, can freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.

Non-Eligible Investors: The scheme is not available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts etc.

Sanctum Offering for LRS Investments:
To enable you to take advantage of this opportunity and to provide a one-stop solution, we have tied up with Avestar Capital. Avestar provides end to end LRS investment solutions like account opening, investment solutions based on the risk appetite of the clients, tax advisory at the end of the financial year, etc. Avestar manages around USD 1.2 Billion under discretionary and non-discretionary mandates and has offices in New York, San Francisco, and Mumbai. Some of the key aspects of the proposition are listed below:

Services offered:

  • Bank account
  • Trading Account
  • Debit card, and cheque book for each client
  • Money transfers to third part, just like any regular bank account
  • Full online transaction capabilities
  • The ability to set up multiple trading account on the same platform to have different investment strategies, or do it on your own as well (both Discretionary as well as Non-Discretionary)
  • Online reporting
  • Tax reporting and statements at the end of the financial year

The products on offer include direct trading of stocks, bonds, ETFs, MFs, Real Estate etc.

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