Facilities available to NRIs
of 6
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  (i)FAQs FOR NRIs ON DEPOSITORY ACCOUNTQ.1Who is a Non-Resident Indian NRI! Ans.Non- Resident Indian [NRI] means a ‘person resident outside India’ who is acitizen of India or is a ‘person of Indian srcin’. Q.#Who is a $%e&son &esident o'tside India Ans. Under the Foreign !change anagement Act# $%%% [F A]# a person who is N&' a ‘person resident in India’# as defined under (ection ) *+, of the Act isconsidered as a ‘person resident outside India’. 'he most important change indefinition [since FRA $%] is that the citizenship of a person no /onger has a 0earing in determination of residentia/ status. Q.Who is a $%e&son o* Indian o&i+in Ans.‘1erson of Indian &rigin’ *1I&, means a citizen of an2 countr2 other than3ang/adesh or 1a4istan# if a.he at an2 time he/d Indian passport5 or  0.he or either of his parents or an2 of his grandparents was a citizen of India 02+irtue of the 6onstitution of India or the 6itizenship Act# $%775 or c.the person is a spouse of an Indian citizen or a person referred to in su0-c/ause[a] or [0].In+estment 02 1I& in Indian (ecurities is treated the same as the in+estment 02non-resident Indians and re8uires same appro+a/s and en9o2s the samee!emptions. Q.,What is an $Oe&seas Co&%o&ate od/ OC! Ans.‘&+erseas 6orporate 3od2’ means a compan2# partnership firm# societ2 and other corporate 0od2 owned direct/2 or indirect/2 to the e!tent of at /east si!t2 percent 02 Non-Resident Indians and inc/udes o+erseas trust in which not /ess than si!t2 percent 0eneficia/ interest is he/d 02 Non-Resident Indians direct/2 or indirect/2 0ut irre+oca0/2.&63s were de0arred from 1ortfo/io In+estment (cheme w.e.f No+em0er )%#)::$. &63s ha+e 0een 0anned as a c/ass of in+estor w.e.f (eptem0er $;# )::.<owe+er# the2 ha+e 0een permitted to continue to ho/d the securities ac8uired 02them prior to these dates. According/2 &63s ma2 open a demat account# howe+er it can 0e on/2 for the purpose of demateria/izing the e!isting ho/dings. Q.0Whe&e an an NRI2PIO o%en a de3at ao'nt Ans.NRI=1I& can open a demat account with an2 >epositor2 1articipant [>1] of  N(>?. 'he NRI=1I& needs to mention the t2pe [‘NRI’ as compared to ‘Resident’]and the su0-t2pe [‘Repatria0/e’ or ‘Non-Repatria0/e’] in the account opening formco//ected from the >1. $  Q.4Does an NRI need an/ RI %e&3ission to o%en a de3at ao'nt Ans.No permission is re8uired from R3I to open a demat account. <owe+er# creditsand de0its from demat account ma2 re8uire genera/ or specific permissions as thecase ma2 0e# from designated authorised dea/ers. Q.5I* NRI2PIO desi&es to 3a6e inest3ents 'nde& di**e&ent she3es7 an he ho8da88 s'h se'&ities in a sin+8e de3at ao'nt Ans.No. (ecurities recei+ed against in+estments under ‘Foreign >irect In+estmentscheme *F>I,’# ‘1ortfo/io In+estment scheme *1I(,’ and ‘(cheme for In+estment’on non @ repatriation 0asis ha+e to 0e credited into separate demat accounts.In+estment under 1I( cou/d 0e on repatriation or non @ repatriation 0asis.In+estment under F>I scheme is on repatriation 0asis. Q.9Does an NRI &e:'i&e RI %e&3ission *o& de3ate&ia8iation2&e3ate&ia8isationo* se'&ities Ans .  No specia/ permission is re8uired. <o/ding securities in demat on/2 constituteschange in form and does not need an2 specia/ permission. <owe+er# on/2 those ph2sica/ securities which a/read2 ha+e the status as NR @ Repatria0/e = NR- Non-Repatria0/e can 0e demateria/ised in the corresponding >epositor2 Accounts. Q.;Can se'&ities %'&hased 'nde& &e%at&ia<8e and non-&e%at&ia<8e ate+o&/ <ehe8d in a sin+8e de3at ao'nt Ans.No. An NRI must open separate demat accounts for ho/ding ‘repatria0/e’ and non-repatria0/e’ securities. Q.1=In ase a %e&son >ho is &esident in India <eo3es a non-&esident7 >i88 he2she<e &e:'i&ed to han+e the stat's o* his2he& ho8din+ *&o3 Resident to Non-Resident Ans.As per section ;*7, of F A# NRI can continue to ho/d the securities whichhe=she had purchased as a resident Indian# e+en after he=she has 0ecome a nonresident Indian# on a non-repatria0/e 0asis. Q.11In ase a non-&esident Indian <eo3es a &esident in India7 >i88 he2she <e&e:'i&ed to han+e the stat's o* his2he& ho8din+ *&o3 Non-Resident toResident Ans.Bes. It is the responsi0i/it2 of the NRI to inform the change of status to thedesignated authorised dea/er 0ranch# through which the in+estor had made thein+estments in 1ortfo/io In+estment (cheme and the >1 with whom he=she hasopened the demat account. (u0se8uent/2# a new demat account in the residentstatus wi// ha+e to 0e opened# securities shou/d 0e transferred from the NRI demataccount to resident account and then c/ose the NRI demat account. )  Q.1#Can NRIs inest in sha&es7 de<ent'&es and 'nits o* 3't'a8 *'nds in India Ans.NRIs are permitted to ma4e direct in+estments in shares= de0entures of Indiancompanies= units of mutua/ fund. 'he2 are a/so permitted to ma4e portfo/ioin+estments i.e. purchase of share = de0entures of Indian 6ompanies through stoc4 e!change. 'hese faci/ities are granted 0oth on repatriation and non-repatriation 0asis. Q 1 Can an NRI %'&hase se'&ities </ s'<s&i<in+ to %'<8i iss'e What a&e the%e&3issions2a%%&oa8s &e:'i&ed Ans. Bes. 'he issuing compan2 is re8uired to issue shares to NRI on the 0asis of specific or genera/ permission from CoI=R3I. 'herefore# indi+idua/ NRI need noto0tain an2 permission. Q.1,Does an NRI &e:'i&e an/ %e&3ission to &eeie <on's2&i+hts sha&es Ans.No. Q.10What is Po&t*o8io Inest3ent She3e Ans.Under this scheme# NRIs are permitted to ac8uire shares=de0entures of Indiancompanies or units of domestic utua/ Funds through the stoc4 e!change*s, inIndia.In+estment can 0e made 0oth on repatriation or non-repatriation 0asis. For ma4ingin+estment on repatriation 0asis# it wi// 0e necessar2 to ma4e pa2ments 02 wa2 of inward remittance or 02 de0it to the NR = F6NR account of the NRI = 1I&.In+estment on non-repatriation 0asis can a/so 0e made 02 wa2 of inwardremittance or 02 de0it to the NR = F6NR = NR& accounts.'he sa/e proceeds of the repatria0/e in+estments can 0e credited to the NR = NR& accounts of the NRI = 1I& at the option of the in+estor# whereas the sa/e proceeds of non-repatria0/e in+estment can 0e credited on/2 to NR& accounts.'he sa/e of shares wi// 0e su09ect to pa2ment of app/ica0/e ta!es. Q.14What is the %&oed'&e *o& 3a6in+ a%%8iations *o& Po&t*o8io Inest3entShe3e  Ans. 'he app/ication is to 0e su0mitted to a designated 0ranch of an authorised dea/er in India in the prescri0ed form. No permission is re8uired from R3I. Q.15What is a desi+nated <&anh Ans.Reser+e 3an4 has authorised a few 0ranches of each authorised dea/er to conductthe 0usiness under 1ortfo/io In+estment (cheme on 0eha/f of NRIs. 'hese 0ranches are the main 0ranches of ma9or commercia/ 0an4s. NRIs wi// ha+e toroute their app/ications through an2 of the designated authorised dea/er 0rancheswho ha+e authorisation from Reser+e 3an4.  Q.19Whethe& NRI an a%%8/ th&o'+h 3o&e than one a'tho&ised dea8e&  Ans.  No. NRI can se/ect on/2 one authorised dea/er for the purpose of in+estment under 1ortfo/io In+estment (cheme and route the transactions through the 0ranchdesignated 02 the authorised dea/er. Q.1;Can an NRI %'&hase o& se88 sha&es o& one&ti<8e de<ent'&es on a sto6 e?han+e in India on &e%at&iation o& non-&e%at&iation <asis 'nde& %o&t*o8ioinest3ent she3e DAns.NRIs = 1I&s can purchase = se// shares = con+erti0/e de0entures of Indiancompanies on (toc4 !changes under the 1ortfo/io In+estment (cheme. 'he ru/esre/ating to this scheme are as gi+en 0e/owE*ii,(hares purchased under 1I( on (toc4 !change sha// 0e so/d on stoc4 e!changes on/2. 1rior appro+a/ of R3I is re8uired if such shares are proposed to 0e transferred either 02 wa2 of gift or under pri+atearrangement to a non-resident= resident. *iii,'hese trades can 0e done on/2 through a registered 0ro4er on a recognisedstoc4 e!change *i+,NRI sha// designate a 0ranch of an authorised dea/er and route a// his=her transactions through this 0ranch of the authorised dea/er.*+,NRI ta4es de/i+er2 of the shares purchased and gi+es de/i+er2 of sharesso/d.*+i,NRI sha// a0ide 02 the directions gi+en 02 R3I=(3I or such authorit2 if the transaction resu/ts in the 0reach of cei/ings stipu/ated for NRI ho/dingin the compan2=scheme.'he sa/e of shares wi// 0e su09ect to pa2ment of app/ica0/e ta!es.An NRI or a 1I& can purchase shares up to 7 of the paid up capita/ of an Indiancompan2. A// NRIs = 1I&s *a/so the &63s who had purchased shares under theear/ier scheme, ta4en together cannot purchase more than $: of the paid up+a/ue of the compan2. *'his /imit can 0e increased 02 an Indian compan2 to )G 02 passing a Cenera/ 3od2 reso/ution,. Q #= What a&e the %e&3issions &e:'i&ed *o& the t&ans*e& o* se'&ities </ NRI2 PIO th&o'+h o**-3a&6et t&ade (t&ans*e&s o'tside the %'&ie> o* Po&t*o8io Inest3ent She3e o* RI)  Ans. 'he ta0/e gi+en 0e/ow summarizes the permissions re8uired for the off-mar4ettransferE F&o3ToT&ansationPe&3issions Re:'i&ed  NRINRI(a/e or CiftCenera/ permission# no specific permission to 0e ta4enH NRIResidentCift1rior appro+a/ of R3I re8uired.G
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks