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NRI SERVICES

Who is a Non-Resident Indian (NRI)?images

A Non- Resident Indian (NRI) means a ‘person resident outside India’ who is a citizen of India or is a ‘person of Indian origin’ and stays outside for the purpose of employment, business or vocation, or under circumstances indicating an intention to stay outside for an uncertain duration.

imagesWho is a ‘person resident outside India’?

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.

imagesWho is a ‘person of Indian origin’ (PIO)?

‘Person of Indian Origin’ (PIO) means a citizen of any country other than Bangladesh or Pakistan, if:

  • • That person at any time held Indian passport; or
  • • That person or either of his/her parents or any of his/her 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.
imagesWhere can an NRI/PIO open a Demat Account?

NRI/PIO can open a Demat A/C with any Depository Participant (DP) of NSDL/CDSL. (Comfort Securities is a depository participant of CDSL). The NRI/PIO needs to mention the type (‘NRI’ as compared to ‘Resident’) and the sub-type (‘Repatriable’ or ‘Non-Repatriable’) in the account opening form collected from the DP. No permission is required from RBI to open a Demat Account.

imagesWhat is the process for NRI to invest in Indian Capital Markets?

Following is the process for NRI to invest in Indian Capital Markets

  • 1. Open a bank account with a designated bank branch approved by RBI
  • 2. Apply for a general approval for investment in Indian Stock Market through the bank branch
  • 3. Open a Demat A/C with a depository participant to act as registered holder of securities
  • 4. Open an Account with registered Broking Firm to execute transactions.
imagesWhat are the broad schemes under which an NRI can make investments in Indian Stock Markets?

NRI may invest under the Portfolio Investment Scheme (PIS Scheme) and through the Direct Subscription Route.

imagesWhat is a P.I.S. Account?

Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of Foreign Exchange Management Act 2000 under which the ‘Non Resident Indians’ and ‘Person of Indian Origin’ can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch.

images Why is PIS required for trading in Indian Capital Markets on fully repatriable basis?

For all Indian Companies or companies listed on Indian Stock Exchange, there are certain limits of foreign investment, which are to be monitored under FEMA regulations. Any NRI or PIO cannot invest more than 5% of the paid up equity capital in any Indian Company.

images How to apply for a P.I.S. Account?

The Client needs to apply for a general approval for investment in Indian Stock Market through his designated bank branch, where he holds his NRE/NRO account. The application is submitted to a designated branch of an authorized dealer in India in the prescribed form. No permission is required from RBI.

images What is the distinction between NRE and NRO accounts?

Funds remitted from abroad or local funds, which can otherwise be remitted abroad to the account holder, can be credited to NRE Accounts. Local funds, which do not qualify for remittance outside India, are required to be credited to NRO accounts.

imagesCan money be transferred from NRE Account to NRO Account and vice versa?

Yes, money can be transferred freely from NRE Account to NRO Account. However, money cannot be transferred from NRO Account to NRE Account even if it is transferred by mistake from NRE to NRO Account.

imagesWhat all trading segments are available for share trading to the NRI's in India?

NRI's are allowed to trade only in following trading segments in the India Stock Market:

  • 1. Equity Delivery (through the PIS route)
  • 2. F&O (through the Custodial Participant or CP route)

Note: NRI's are NOT allowed to trade in Equity Intraday segment (day trading) and Currency derivatives.

imagesWhat all investment instruments are available for NRI or PIO Card Holders in India?
  • 1. Equity shares or convertible debenture of Indian Companies
  • 2. Exchange Traded Funds (ETFs)
  • 3. Government Securities
  • 4. Government Treasury Bills
  • 5. Mutual Funds
  • 6. Bonds issued by a public sector undertaking (PSU) in India
imagesCan NRI apply in IPO, FPO or other public issues?

Yes

imagesCan NRI trade in currency derivatives?

No

imagesWhy 'Day Trading' is not available for NRI's in India Stock Market?

The Intraday trading in Equity segment is not allowed to NRI's by RBI.

imagesCan Power of Attorney holder manage portfolio on behalf of NRI?

Yes. A power of attorney holder can manage portfolio on behalf of NRIs. However, he cannot affect remittance outside India.

With Comfort Securities, Indians across the Globe can invest in the India Story and make the most out of it. Comfort Securities offers a variety of investment services and products to its fellow Indians across the globe and makes their life simpler with its latest technology and dedicated customer support. Comfort Securities offers the maximum ease and comfort to all its fellow Indians in enabling them to trade in the Indian Markets and derive the maximum value to their portfolio.

THE INDIA STORY – WHY INVEST IN INDIA?

Robust Economic Growth:

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At a time when the growth of the developed nations remains muted, India has emerged as the fastest growing economy in the emerging markets with GDP Growth Rate beating that of China.
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With normal monsoons this year and great economic reforms by the Government, the outlook for the future seems very positive and the economy is expected to grow at much faster pace.
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Reforms Galore:

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The Current Government is working towards overhauling the economic structure of the Country and is leaving no stone untouched.
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Reforms like Jan Dhan Yojana, Make in India, Digital India, Smart City Projects, GST Implementation, are driving the growth of the Country.
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Strong Demographics:

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Youngest Population in the World, with an average age of 25 and likely.
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The huge population of the country offers businesses vast consumer markets for goods and services thereby increasing consumption spending and fueling economic growth.
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Growing Equity Markets:

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India’s strong macroeconomic fundamentals, fiscal discipline and stable forex market have increased its credibility in so far as tackling turbulent economic situations are concerned, reflecting a favourable investment climate.
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Vibrant capital markets. National Stock Exchange (NSE) is the World’s 3rd largest stock exchange in terms of transactions. Further Bombay Stock Exchange (BSE) is the oldest stock exchange of Asia, 5th largest stock exchange in terms of transactions and the biggest stock exchange in terms of listing in the world.
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Vibrant capital markets. National Stock Exchange (NSE) is the World’s 3rd largest stock exchange in terms of transactions. Further Bombay Stock Exchange (BSE) is the oldest stock exchange of Asia, 5th largest stock exchange in terms of transactions and the biggest stock exchange in terms of listing in the world.
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SEBI Single Regn. No. : BSE / NSE / MSMI - INZ0001192537  |   CDSL Reg. No :  IN-DP-CDSL-438-2008                                                                                                                           SEBI Scores
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