Restrictions on NRE account remittance

This query is : Open

Guest

Guest (Querist)

09 September 2023 For remittance under LRS, I see there are restrictions (e.g. the foreign currency cannot be used for trading options in US market)
https://www.rbi.org.in/Scripts/FAQView.aspx?Id=115#Q2

Are there any such restrictions for remittance made from NRE account?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 September 2023 No such restrictions for remittance made from NRE account.

Guest

Guest (Querist)

10 September 2023 Thanks for the reply.
I transferred some money via the LRS route a month back.
But now I'm an NRI (moved abroad to take up employment).

Will the money that I sent to my overseas account have the restrictions (such as cannot do margin trading)? Or since I am now an NRI the restrictions dont apply?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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10 September 2023 Wait till the year end to become NRI.

Guest

Guest (Querist)

10 September 2023 Oh, I see.
I thought from FEMA perspective, I become an NRI immediately if I leave India for employment abroad. Didn't know I'll have to wait till Mar/April 2024 to start trading in US options.