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The following are the various types of rupee accounts
available for Non-Resident Indians:
Non-Resident Ordinary Account
Non-Resident (External) Rupee Account
A NRO bank a/c is an ordinary saving bank a/c opened for
NRIs. This is why it is known as Non-Resident Ordinary a/c.
Since it is an Ordinary account i.e. as good as a normal
savings bank a/c, money lying in NRO account can not be
taken out side the country or in other words, the money
lying in the NRO a/c is not Repatriable.
A NRE bank a/c is an external saving bank a/c opened for
NRIs. This is why it is known as Non-Resident External
Accounts. Since it is external a/c, any money lying in NRE
account can be taken out side the country or in other words,
the money lying in NRE a/c are fully repatriable. This money
can be converted into any foreign currency at the behest of
the account holder and can be remitted outside the country.
Yes, money can be freely transferred from NRE account to NRO
account.
No, money cannot be transferred from NRO account to NRE
account.
RBI has advised banks to re-designate such accounts as
resident account on return of the account holder to India.
As per section 6(5) of FEMA, NRI can continue to hold the
securities, which he/she had purchased as a resident Indian.
After he/she has become a non-resident Indian, he/she has to
transfer the shares to his NRO (Non Resident Ordinary)
account.
Portfolio Investment Scheme (PIS) is a scheme of the Reserve
Bank of India which defines that Non Resident Indians can
purchase and sale shares and convertible debentures of
Indian Companies on a recognized stock exchange in India by
routing all such purchase/ sale transaction through their
a/c held with a designated bank branch. PIS account is one
type of saving account with bank only for NRI’s
secondary market transaction.
Any NRIs want to trade/make fresh investment in the Indian
equity secondary market needs and must have one PIS account
with only one designated bank in India.
Note :-
1. PIS a/c is only for NRIs
2. It is only for trading in Indian market not for foreign
market.
3. It is applicable only for equity trade not for MFs
investment. PIS Account-Eligibility
Foreign Institutional Investors (FIIs), Non-Resident Indians
(NRIs), and Persons 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.
Ceiling-PIS Scheme
The ceiling for overall investment for FIIs is 24 per cent
of the paid up capital of the Indian company and 10 per cent
for NRIs/PIOs. The limit is 20 per cent of the paid up
capital in the case of public sector banks, including the
State Bank of India.
NRI/PIO can open only one PIS account with any designated
banks (Preferred bank – Axis Bank) in a prescribed
format for PIS account, upon which the bank can issue a PIS
approval letter to the investor.
No, any investment done in equity shares through secondary
market should be routed through a PIS account. Investments
like Mutual Funds, IPO etc can be done through direct
subscription route.
A Trading Account will enable you to buy and sale shares in
the secondary market. The trading account must be in the
name of an individual but the account can be tied to a
jointly held depository account provided the trading account
holder is any one of the holders of the joint depository
account.
Most shares being available only in the electronic form, a
Depository account is a precondition for trading in the
secondary market. Kunvarji is a registered member
(Depository Participant) of CDSL. You can avail of all the
depository-related services by just opening an account with
CDSL through Kunvarji.
There are two types of demat accounts
Repatriate Demat Account
Non Repatriate Demat Account
In order to open an account, customer will have to submit
the following documents.
For Bank Accounts
Passport copy where identity, place of birth,
signature and arrival date appear
Valid visa (if Indian Passport)
Foreign Address Proof (Utility Bill/ Driving
License/ Bank statement)
Indian Address Proof ( If Possible)
PIO Card ( if client is having foreign passport and
there is no PIO Card then you need to produce relevant proof
of father or grandfather who were living in India
3 Photographs
For Demat and Trading Account ( 2 sets of
Following are required)
PAN Card
Passport copy where identity, place of birth,
signature and arrival date appear
Foreign Address Proof (Utility Bill/ Driving
License/ Bank statement)
Indian Address Proof ( If Possible)
PIO Card ( if client is having foreign passport and
there is no PIO Card then you need to produce relevant proof
of father or grandfather who were living in India
RBI Approval Letter
NRE/NRO Bank Statement
NRE/NRO Cancel cheque copy
Photographs
Note :- All documents, self attested as per pan card
signature and if client is out side India at the time of
application in that case photocopies of all the KYC
documents/proofs and PAN card are attested by the Indian
Embassy or / Consulate General / Notary Public / Any Court /
Magistrate / Judge / Local Banker in the country where the
NRI or FN resides. The attesting authority should affix a
“verified with originals” stamp on the said
documents. The photocopies of the KYC documents and PAN card
should also be signed by the NRI/FN. If the NRI or FN comes
in person to open the account, the above attestation
requirement may be waived.
Ans. You can apply for PAN by filling up
Form 49A: Application for Allotment of Permanent Account
Number (PAN application form). You can also apply for PAN
online through NSDL-TIN website.
SEBI has mandated that person entering into transaction on
Stock Exchange as well as person having demat account must
have PAN Card Number which is to be maintained by the broker
and DP in their client database.
Kunvarji Finstock Pvt Ltd is providing professional
assistance for obtaining PAN Card as per request from NRI.
Ans. You have to submit the following documents with the
application form:
A] Proof of identity-
B] Proof of address –
C] Photograph
| Proof
of Identity and Proof of Address for non resident PAN
applicants |
| Status
of the applicant |
Individual |
| Proof of Identity |
Copy of passport, duly attested
by Indian Embassy in the country where applicant is
located. |
| Proof of Address |
copy of bank account statement
in country of residence, duly attested by Indian Embassy
in the country where applicant is located |
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