Are Indian residents allowed to hold USD?
I was previously working for a small US based startup, as a part of my compensation I was granted ESOPs. I found a buyer in the secondary market and decided to sell off the stock
One of the requirements of the sale was that I was required to complete the exercise of the option out of my own pocket, for which I borrowed money from my brother in law, on the condition that I repay him in USD instead of INR
Now the challenge is that I need to send money to my Brother in law in USD from India. While the secondary sale will be in USD, if I share my savings bank account, the currency will be converted to INR. And also get a lower conversion rate.
If I were to go ahead with my saving bank, then not only am I getting bad forex rate. But also that when I want to send USD to BIL, I'll have to convert to USD and pay for bad forex charges again.
Trying to figure out if there is a better way to deal with this situation
Note: The secondary market mandates that the seller is either the sole or joint holder of the account