Sending money: Investor will remit money from his Indian (local) bank account. The LRS debit instruction will be given in USD. Bank will convert INR to USD and remit the funds to the brokerage account in the US.
Receiving money: Investor will give a withdrawal instruction to his brokerage account in USD. Broker's bank will remit USD to customer's Iocal (Indian) bank account. The Indian bank will convert USD to INR and credit the customer's bank account.