 |
FCNR: |
| |
Foreign
Currency Non-Resident Account. It
is maintained in foreign Currency
viz., US Dollar (USD), Pounds Sterling
(GBP), Euro Currency (EUR) and Japanese
Yen (JPY), but only as fixed deposits.
The Principal and Interest earned
thereon are repatriable |
|
NRE
Bank Account |
| |
Non-Resident
External Account. Maintained in
Indian Rupees, both in the form
of savings bank and fixed deposit.
Principal and Interest earned thereon
are repatriable |
|
NRO
Bank Account |
| |
Non-Resident
Ordinary Account. Maintained in
Indian Rupees, both in the form
of savings bank and fixed deposit.
Taxable under Indian Income Tax.
Principal is not repatriable whereas
interest earned thereon is repatriable,
after payment of applicable taxes.
Best suited for NRIs who have some
sort of income accruing in India
viz., Rental income, dividend etc.
Can be maintained jointly with a
resident Indian |
|
Portfolio
Investment Scheme (PIS) |
| |
This is
similar to the NRE/NRO savings
a/c. The NRI can trade in the
secondary stock market with Repatriation
(from NRE PIS a/c) and on non-repatriation
basis(from NRO PIS a/c). Demat
a/c's can be opened with signatures
of Power of Attorney(POA)
|
|
|
| FAQ’s
for NRI’s |
 |
What is the
classification of NRI’s? How
do I know if I classify as NRI? |
Non-
Resident Indian means a ‘person
resident outside India’ who
is a citizen of
India or is a ‘person of Indian
origin’ |
|
Under the Foreign
Exchange Management Act, 1999 [FEMA],
a person who is NOT a ‘person
resident in India’, as defined
under Section 2 (v) of the Act is
considered as a ‘person resident
outside India’. The most important
change in definition [since FERA
1973] is that the citizenship of
a person no longer has a bearing
in determination of residential
status. E.g a citizen of India who
is a residing in the US or other
country under work permit would
also be considered as an NRI
|
| ‘Person
of Indian Origin’ (PIO) means
a citizen of any country other than
Bangladesh or Pakistan, if |
 |
he at
any time held Indian passport;
or |
|
he or either of his parents
or any of his grandparents
was a citizen of India by
virtue of the Constitution
of India or the Citizenship
Act, 1955; or |
|
the person is a spouse of
an Indian citizen or a person
referred to in sub-clause
[a] or [b] |
|
| Investment
by PIO in Indian Securities is treated
the same as the investment by non-resident
Indians and requires same approvals
and enjoys the same exemptions. |
|
Can
NRIs invest in shares, debentures
and units of mutual
funds in India? |
NRIs are permitted
to make direct investments in shares/
debentures of Indian companies/
units of mutual
fund. They are also permitted
to make portfolio investments i.e.
purchase of share / debentures of
Indian Companies through stock exchange.
These facilities are granted both
on repatriation and non-repatriation
basis.
|
|
|
Can
I apply for IPO’s? if YES, then How? |
Yes.
The issuing company is required to issue
shares to NRI on the basis of specific
or general permission from GoI/RBI. Therefore,
individual NRI need not obtain any
permission. You can apply for IPO’s
directly online without the hassle of
filling up long forms by logging onto
our IPO online section. |
|
What
is a PIS account? Do I need it to start
trading in the Indian Market? |
Under
this scheme, NRIs are permitted to acquire
shares/debentures of Indian companies
or units of domestic mutual
funds through the stock exchange(s)
in India. |
Investment
can be made both on repatriation or non-repatriation
basis. For making investment on repatriation
basis, it will be necessary to make payments
by way of inward remittance or by debit
to the NRE / FCNR account of the NRI /
PIO. Investment on non-repatriation basis
can also be made by way of inward remittance
or by debit to the NRE / FCNR / NRO accounts. |
The
sale proceeds of the repatriable investments
can be credited to the NRE / NRO accounts
of the NRI / PIO at the option of the
investor, whereas the sale proceeds of
non-repatriable investment can be credited
only to NRO accounts. |
|
In case the nature of investment cannot
be verified, the status of the scrip will
have to be ascertained by referral to RBI.
|
| The
sale of shares will be subject to payment
of applicable taxes. |
|
How do
I apply for PIS? |
The
application is to be submitted to a designated
branch of an authorised dealer in India
in the prescribed form.
Reserve Bank has authorised a few branches
of each authorised dealer to conduct the
business under Portfolio Investment Scheme
on behalf of NRIs. These branches are
the main branches of major commercial
banks. NRIs will have to route their applications
through any of the designated authorised
dealer branches who have authorisation
from Reserve Bank.
|
| The
banks Authorised to accept PIS applications
are |
 |
HDFC |
|
UTI |
|
ICICI Bank
|
| |
|
|
|
If I already
have a NRE/NRO account, then how do I apply
for a PIS account? |
|
If you have a NRE/NRO
account with any of the above named authorized
dealers, then all you need to do is submit
an application form for a PIS account.
If you however have a NRE/NRO account
with a bank other than the above named
banks, you will need to approach any of
the above names banks and provide them
details of your account and then apply
for the PIS through them |
|
How do
I make payments and receive payments? |
Whenever
a client executes a Buy/Sell Trade in
any of the exchanges, a bill for the same
is generated from our side (a copy of
the bill is sent to the client by email).
This bill is then presented to the respective
bank of the client by Shah Investors.
The bank verifies the clients account
number and status and issues or accepts
the cheque for the amount of the bill |
|
What about
tax implications of my income/investments
in India? |
Most
banks these days provide CA facilities
for NRI’s who prepare the end-of-year
statements for their clients based on
the transactions of the clients in their
PIS and Bank Accounts.
The Tax applicable for NRI’s are
different than those applicable for Resident
Indians. You can get a summary of these
from a local CA. |
|
Is it
safe & reliable to invest? |
Shah
Investors has placed proper security measures
like SSL certificate, Firewalls, Proxy
IP’s and a DMZ (Di Militarized Zone)
to ensure complete safety of data from
the client to the server to the corresponding
exchanges. The broadcast rates come directly
from the exchange and are real-time which
ensures reliability of the rates and tickers |
|
All this
is very complicated, Where and How do I
begin from? |
| Please
follow our guidelines for opening an account
to help you guide through the process by
clicking
here |
|
How do
I open a demat/trading account? |
| Please
follow our guidelines for opening an account
to help you guide through the process by
clicking
here |
|
How do
I open a NRE/NRO Bank account? |
| Click
here for details and forms for opening a
NRE/NRO account with UTI bank or HDFC bank |
|
If I already
have an NRE/NRO account with some bank and/or
in some other city, can I retain it and
still open a demat and trading account with
you? |
You
can keep the NRE/NRO account with any
bank as long as it is located in the city
where we have one of our branches. This
more than anything else facilitates the
process of cheque deposit and withdrawl
based on your transactions. Your Trading
and Demat Accounts are independent of
your Bank Account. It is however necessary
to mention your NRE/NRO bank account number
in your Demat and Trading A/c Forms |
|
If I already
have a demat account with some other DP,
can I still open a Trading Account with
you? |
As
per Shah Investors rules and guidelines,
all clients who open a Trading Account
with Shah Investors need to have a Demat
Account with Shah Investors. A client
can continue to keep his/her Demat Account
with another DP, but will have to open
a new Demat Account with Shah Investors. |
|
In case
a person who is resident in India becomes
a non-resident, will he/she be required
to change the status of his/her holding
from Resident to Non-Resident? |
NRI’s
can continue to hold the securities which
he/she had purchased as a resident Indian,
even after he/she has become a non resident
Indian, on a non-repatriable basis |
|
How do
I get to know my balance and statement of
Accounts? |
For
your NRE/NRO bank account, the respective
bank will provide you with your online
user i.d and password through which you
can monitor and carry out online trasactions
through the bank.
For your account with Shah Investors,
we would provide you with our own user
i.d and password through which you would
be able to monitor your Demat Account
as well as Trading Account. |
| You
would be able take advantage of the following
features |
 |
Check your bills online and save them |
|
Get a summary
of your trades |
|
Get a complete
statement of account for all three
exchanges |
|
Get a profit/loss
report of your trading account |
|
Check your
Demat holding online |
|
And plenty
more |
|
|
What is
a PAN card? Is it compulsory to have a PAN
card if I am an NRI? |
Permanent
Account Number
(PAN) card is issued to anybody who pays
or will have to pay taxes in due time
in India. As per the new rules and guidelines,
even NRI’s are required to have
a PAN card |
|
How do
I apply for a PAN card? |
To
know about how you can apply for a PAN card
check out our guidelines for opening an
account by clicking
here
|