Offshore Funds are funds that make investments in international markets and hence, are also often referred to as ‘International Funds’. These schemes invest in stocks, mutual funds schemes, fixed income securities, real estate assets etc. overseas. Offshore funds are required to comply with the guidelines issued by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI). The asset management company managing the offshore funds also needs to comply with the regulations of the foreign country where they are registered. Offshore funds are available to investors in the form of thematic, country-specific, and region-specific funds.
Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to 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. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.