RBI and SEBI intensify scrutiny of Indian outward fund transfers
With the rupee under pressure thanks to rising oil prices and money leaving India, the RBI and the SEBI are stepping up their watch on money sent abroad.
In just three weeks, the RBI has sent at least 10 queries where fund transfers did not have a clear business reason or real assets behind them.
Family offices face ODI scrutiny
Companies can invest overseas through Overseas Direct Investment (ODI), but only up to limits tied to their net worth.
Individuals get $250,000 per year under the Liberalized Remittance Scheme (LRS).
Regulators are now paying extra attention to family offices using company structures to dodge these limits.
ODI grew 11% in financial year 2024-25 to $48.39 billion, with individual remittances at $28.9 billion.
Regulators' moves aim to protect reserves
SEBI is also tightening checks on offshore setups with high valuations.
All these moves aim to protect India's foreign exchange reserves while the rupee rides out a rough patch.