Can I open long only option positions in US stock exchange?

General
21

Hi @orion591

If resident in India, the RSU/ESOP received is taxed in India, click here to read more on RSU/ESOP taxation.
If you can sell the ESOPs received in the open market then you must have a broker account as a non-resident in the US, then whether you can or cannot trade in the derivatives segment is under the purview of your broker in the US.
As far as LRS is concerned it is applicable on transfer-out (money moving out of India) and as no money is transferred out of India, LRS does not apply. For eg. If you own a property in the US that you sold, leaving you with a capital amount in the US, LRS will not be under purview as money is not transferred out of India. While taxation of foreign Income (property sold) will be as per the Indian tax regime.

Hope this helps.

2 Likes
22

N with that money, can one trade global derivatives ? What act does that fall under as FEMA is bypassed now ?

23

Thanks that helps.

Is it mandatory to repatriate (or remit) the sale proceeds from the above to India or can it be maintained in a Foreign account outside India?

24

Only LRS is bypassed, all other aspects of FEMA still apply.

1 Like
26

Maybe lol!

27

for the buyer of american options too its only a right not obligation, that obligation lies with the seller

An option is a derivative, a contract that gives the buyer the right, but not the obligation, to buy or sell the underlying asset by a certain date (expiration date) at a specified price (strike price).

28

the buyer has no obligation to exercise its only a right, so he wont be forced, so u onto something here

An option is a derivative, a contract that gives the buyer the right, but not the obligation, to buy or sell the underlying asset by a certain date (expiration date) at a specified price (strike price).