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Investment Steps |
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Open an NRI Bank Account |
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Open an NRI PIS Account |
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Open an NRI Demat Account |
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Open an NRI Trading Account |
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As Indias economic growth explodes, stock market has emerged as one of the most appealing investment vehicle for domestic as well as foreign investors. There has been increased in foreign capital investment due to economic liberalization policies of Indian government. Abolishment of long-term capital gain tax has also made stock market investment more attractive.
Today, the country is one of the fastest growing economy and also amongst the most preferred investment destinations for the best of companies across the globe. With the government focusing on developing the debt market, state of the art trading, settlement and risk management practices, and the fast growth of derivatives market has made the country attract the best of foreign investments in the year 2007.
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Non-Resident Indian Under FEMA, 1999
The Foreign Exchange Management (Deposit) Regulations, 2000 and FEM (Investment in Firm or Proprietary concern in India) Regulations, 2000 defines a Non Resident Indian as a person resident outside India who is a citizen of India or is a person of Indian Origin.
Thus, to qualify as a non- resident Indian, a person should be:
(1) Resident outside India; and
(2) A citizen of India or a person of Indian Origin
Non-Resident Under FEMA, 1999
Section 2(w) of FEMA,1999 defines a person resident outside India as a person who is not resident in India. A person resident in India is defined in Section 2(v) as under:
- A person residing in India for more than 182 days during the preceding FY but does not include:
A person who has gone out of India or who stays outside India, in either case
(1) for or on taking up employment outside India, or
(2) for carrying on outside India a business or vocation outside India, or
(3) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.
A person who has come to or stays in India in either case, otherwise than
(1) for or taking up employment in India, or
(2) for carrying on in India a business or vocation in India, or
(3) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period
- Any person or body corporate registered or incorporated in India,
- An office, branch or agency in India owned or controlled by a person resident outside India,
- An office, branch or agency outside India owned or controlled by a person resident in India.
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PIO means a citizen of any country other than Bangladesh or Pakistan, if
- He at any time held an Indian Passport
- He or either of his parents or his grandparents was an Indian and permanent resident in Undivided India at any time
- A spouse of a citizen of India or of a person of Indian origin is also deemed to be of Indian Origin even though she / he may be of non-Indian origin
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PIS (Portfolio Investment Scheme)
PIS is a RBI regulated scheme and is required if NRIs/PIOs want to trade in secondary market in India through SEBI registered share broker. Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Person of Indian Origin (PIOs) are allowed to invest in the secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India.
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NRIs are permitted to invest in shares / convertible debentures of Indian companies, by Reserve Bank of India, under Portfolio Investment Scheme (PIS), in secondary market through a registered broker on a recognized Stock Exchange. Reserve Bank of India, vide A.P.(DIR Series) Circular No. 13 dated November 29, 2001 has prohibited OCBs to invest under PIS in India. Further, the OCBs that have already made investments under PIS have been allowed to continue to hold such shares / convertible debentures till such time these are sold on the stock exchange. The guidelines of Reserve Bank of India in respect of ceiling on investments are as under:
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- Investment in shares of a company, by each NRI (both on repatriation and non-repatriation basis) shall not exceed 5% of the paid-up value of shares of the company concerned.
- Investment in convertible debentures of a company, by each NRI (both on repatriation and non-repatriation basis) shall not exceed 5% of the paid-up value of convertible debentures in each series, issued by the company concerned.
- Aggregate investments by NRIs will be subject to a ceiling of (a) 10% of the total paid-up equity capital of the company concerned: and (b) 10% of the total paid-up value of each series of convertible debentures issued by the company concerned. Such Indian companies shall however raise the ceiling of 10% to 24% or such ceilings a may be decided by the companies, by passing a special resolution in the General body of the company.
- In case of investments on repatriation basis, the payment for purchase of shares / debentures should be by way of debit to the investors NRE account. In case of investments on non-repatriation basis, the payment for purchase of shares / debentures shall be by way of debit to the investors NRO account also.
- The net sale / maturity proceeds of shares / convertible debentures, after payment of taxes, shall be credited only to the investors NRO account if the investment was made on non-repatriation basis and shall be remitted abroad / credited to the investors NRE / NRO account if the investment was made on repatriation basis.
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PIS Transaction
NRIs are allowed to Purchase and sale of shares/convertible debentures of Indian companies through Secondary Market.
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Ambit of PIS
- Securities purchased as a resident individual are not covered under this scheme.
- Derivative segment transactions or Mutual fund unit purchases are not within the ambit of the PIS scheme.
- Shares purchased through IPO's (Initial public offers)
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Delivery Based
Delivery based trading is done with the intention of taking delivery of shares.
NRIs and PIOs are not allowed to do Intra-day trading in the Indian Stock Markets, so at SIHL they will be able to do only delivery based trading.
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Market Orders
You can trade by placing market orders during market hours that allow you to trade at the best obtainable price in the market at the time of execution of order.
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Limit Orders
You can place a buy/sell order at a price defined by you. The execution will only happen at your price or a more favorable price than that defined by you.
If the price mentioned by you is not reached, the order will not be executed.
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Please click here for list of banned and cautioned scripts as prescribed by RBI.
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VConnect is the connection between you and us. It is our offline trading facility, where one can visit and feel the good ambience while trading or just call and trade. NRIs can email us or call us to do their trades.
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Features
- Get confirmation of tradesthrough emails
- Get contract notes(bills),Statement of account online
- Online demat holding facility
- View Market Research Online
- View IPO watch, New listing and news from website
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Rapideal is a browser based online service. With this feature, you can use and access your account through internet from any part of the world. For the investment minded people, this feature provides a continuous connectivity and keeps them abreast with their investments anytime anywhere.
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Features
- Be connected anytime, anywhere
- No software Installation required. Accessible through Browser.
- Minimum Margin of Rs. 5000/- Required
- Have unlimited portfolio with 20 scrips
- Create and Manage your Own Portfolio
- Single screen trading terminal (NSE BSE Cash & Derivatives)
- Real time Streaming Quotes
- Better analysis with charts
- Online fund transfer through ICICI, HDFC & AXIS
- Track your Demat Holding
- View Account Information regarding Trades, Bills and Profit & loss through web
- Back up facility to trade on Direct Phone lines.
- Be relaxed secure transactions
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NRIs can buy/sell shares in online or offline mode.
For this reason we are providing two types of Accounts:
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You can Open NRE /NRO account as per your Bank Title.
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If you want to repatriate the amount than you should open NRE Account and if you do not want to repatriate and want to invest in Indian Rupees you can choose NRO Account.
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Trading Account will be opened on single name. It cannot be with the Joint Name. However you can appoint a Power Of Attorney Holder to operate your account.
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Demat refers to a dematerialised account. It is safe, secure and convenient way to hold securities. Demat account is just like your savings or current Bank A/c. We provide demat accounts through two central facilities. NSDL (National Securities Depository Ltd) and CSDL (Central Depository Services (India) Limited).
NRIs can have two types of bank account for investment purpose NRE & NRO. Similarly, there are two type of demat account.
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Investment on Repatriation Basis: (NRE Demat a/c)
The repatriation of the sale proceeds is allowed if the original purchase was made on repatriation basis. Means you can take your capital, profits, and dividends in foreign exchange, which you invested originally in foreign exchange.
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Investment on Non Repatriation Basis: (NRO Demat a/c)
Through this account one cannot repatriate their investment/capital in foreign exchange. Means you can get back the proceeds only in Indian rupees, irrespective of the currency you used to invest in the same. On becoming an NRI, the balances held in resident account should be transferred to the account with NRI status and securities held under this account will be treated on non-repatriable basis.
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Advantages
- Dematerialization of Physical Shares/Certificates
- Online statement holding facility
- Automatic dividend credit to your bank A/C
- Nomination facility
- Change of address/ Bank flexibility.
- Freezing & De-freezing of A/C
- NRI special share transfer procedure “ NRI to Resident OR Resident to NRI
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A mutual fund is made up of money that is pooled together by a large number of investors whoÂ
give their money to a fund manager to invest in a large portfolio of stocks and/or bonds.
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SIHL mutual funds division offers a choice of investment schemes from all major mutual fund providers catering to NRI investors with varying risk-return profiles.We also choose the best mutual fund based for your investment needs.
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NRIs can invest in Mutual Fund Schemes on Repatriation OR Non-Repatriation basis.
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On behalf of NRI, Power Of Attorney holder in India also can apply. No Special Regulatory permission is required to invest in Mutual Funds.
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Several different schemes are offered by fund houses to cater verifying investment needs over a lifetime.
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| Types of mutual funds |
- Equity : Primary market funds, Small stock funds, Index funds, Sectoral funds
- Debt : Income funds or diversified debt funds, Gilt funds, Liquid and money market funds, Serial plans or fixed investment plan
- Balanced : Debt and equity in comparable proportions, Pre-dominantly debt with some exposure to equity, Pre- dominantly equity with some exposure to debt, Education plans and childrens plans
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| Advantages |
- Dematerialization of Physical Shares/Certificates
- Personalized Single windows services
- Online application forms/ redemption/ change related documents
- Fastest confirmation and E-mail alerts on new Dividend declaration and record date
- Update on the status of your investments (individual profit/loss statement)
- Online Mutual funds snap shot
- Research based advice on your current Mutual Fund portfolio. Advise on investment and redemption as well.
- New fund offer guidance by our mutual funds mentors
- Weekly New letter on Mutual Fund performance
- Co-ordination with Power of Attorney Holder investing on behalf of NRI
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IPO is an Initial Public Offer for Investors to invest in Primary Market. It is the first sale of stock by a private company to the public.
- NRI can invest in IPO if company has reserved NRI quota.
- NRI can appoint a Power of attorney to fill IPO
- No requirement of RBI permission or PIS for IPO. However, if you want to sell or buy stock you need to have PIS permission.
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Mutual Fund industry offers a unique option to invest funds at very attractive TAX EFFICIANT return by investing in FIXED MATURITY PLANS (FMP) Pure DEBT schemes.
A Fixed Maturity Plan or FMP as it is known as is a close-ended debt fund with a fixed tenure that invests in a portfolio of debt and money market instruments maturing in line with duration of the scheme.
The FMPs can be of different maturities ranging from 15 days to 5 years. FMPs have fixed maturity and portfolio manager tries to match the maturity of papers with the scheme maturity.
FMPs invest in a portfolio consisting of bonds, government securities, fixed deposits, CPs, NCDs, CDs and money market instrument.
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| BENEFITS |
- Pure Debt (Equity Free) Portfolio
- Offer Uniform handsome returns for both short and long term investment horizon
- Unlike Fixed Deposit interest, gain does not add to income
- Taxed as Capital Gain instead of Income
- Premature withdrawal possible at NAV price with exit load
- Dividends are tax free in investors hand
- FMPs are available for different time period
- Fund management expertise
- Specified maturity date
- Predictability of Returns
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NRI's can invest in the Indian stock market under PIS (Portfolio Investment Scheme), which is regulated by RBI, and NRI's are not allowed to trade in the stock market on day-to-day basis.
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One can start investment process by following the below mentioned four steps.
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Please CLICK HERE to contact our NRI Department for any help needed.
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Open a Bank Account NRE/NRO
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NRE (Non Resident External) Bank Account
Non-Resident External Account. Any person resident outside India may open NRE account. This account permits a NRI to hold and maintain foreign currency in Indian Rupees. It Maintained in Indian Rupees, both in the form of savings bank and fixed deposit. Principal and Interest earned thereon are repatriable.
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NRO (Non Resident Ordinary) Bank Account
Non-Resident Ordinary Account. Many Non-Resident Indians earn income in India through rent, dividends, pension and so on. NRO account allows NRI to conveniently deposit and manage such local rupee funds. It Maintained in Indian Rupees, both in the form of savings bank and fixed deposit. It is 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
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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). Portfolio Investment Scheme (PIS) allows NRIs to invest in shares of Indian companies, in secondary market, under repatriation or non-repatriation basis in respect of shares or convertible debentures sold or purchased through a registered stockbroker on a recognized stock exchange. Any other modes of acquiring shares are not covered under this scheme ie, shares purchased through IPOs, as resident individuals, bonus shares etc. RBI has authorized a few branches of each bank to conduct business under Portfolio Investment Scheme (PIS) on behalf of NRIs/OCBs. You can have as many NRI/NRO accounts in India but you should have only one designated bank for sale/purchase of shares under the Direct/Portfolio Investment Schemes. RBI guidelines permit NRI investors to designate only one bank authorized by RBI to undertake purchase/sale of shares under PIS.
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An investor wishing to utilize the services offered by a depository has to open an account with depositary through the depositary participant. This is known as Demat account. This refers to a dematerialized account and it is similar to opening a bank account. Here, one can see his/her shares instead of monies. NRIs can also open NRE/NRO account as per their own requirement.
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NRE Trading account: This Trading Account will be similar to your Normal Trading Account. But it should be in the status of NRE, one can buy and sell shares through this account. By repatriating from this account, you can take back your profit, if you wish. This trading account will be linked with your NRE or NRO demat account.
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NRO Trading account: Your any income in India or if you have any shares that are held as Indian Resident, then they will go into your NRO Demat account and you are required to trade through your NRO Trading Account. Reinvestment of the same in India is possible.
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To open an account we require following documents for opening a Trading Account. Please submit a photocopy of the documents and bring original documents for verification. |
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1.Photo Proof (Any one of the following) |
- Passport
- Voter Id
- Driving License
- Pan Card
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2.Address Proof (Any one of the following) |
- Passport
- Voter Id
- Driving License
- Telephone Bill (Not more than 2 months Old)
- Electricity Bill (Not more than 2 Months Old)
- Bank Passbook
- Bank Statement (Not more than 2 months Old)
- Ration Card
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3.A copy of Cancelled Cheque |
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4.Pan Card |
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5.Signed Photograph of Holder |
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6.Copy of notarized Power of Attorney, photograph of POA, Address proof of POA, PAN card of POA and rubber stamp, if like to have POA for Account. |
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NSE-CM: INB230759031, NSE-FO: INF230759031, NSE-CD: INE230759031, Member Code: 07590 BSE-CM: INB010759034, BSE-FO: INF010759034, Member code 0943
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MCX-SX INE260759031, Member Code: 10
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