How NRI’s can invest in Indian share market?
- 7 Comment
Introduction
I am getting many queries from NRI readers about their investment in India. One of the question is, what are the procedures to start investing in the Indian stock market by maintaining the NRI status. In this article I will be listing the few points which needs to be done before start investing. If you have any doubts, please post it in the comments section. If you like the article, get free email updates.
How NRI can invest in Indian Stock Market?
- If you are NRI, then you must have the NRE demat account, Savings Bank account and Portfolio Investment Scheme (PIS) and trading account.
- If you want to bring the share income to India, then you must have the NRO account.
- NRO and NRE demat account you can open it from any of the agents or your banker.
What is 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).
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
Summary
I hope this article would be very useful for the NRI readers. It has only the basic ideas on opening the trading account. I will write the detailed procedures in the future articles. I am happy to help them if they have more queries related to the topic. If you have any doubts, please post it in the comments section.
Subscribe to our free newsletter.
Related posts:
7 Comments on this post
Trackbacks
-
A.L.CHAUDHARY said:
Can PIS can be ioerated through STATE BANK OF INDIA .
If some resindent in India having demat and online tdrading account subsequently beocmes NRI what procedure to be followed to deal with shares already purchaes and subequent trading tranctions.April 10th, 2010 at 8:52 pm -
Edward said:
Can an NRI have more than one broker to trade in shares?
Can an NRI make day trades if the amount is not repatriable?June 8th, 2010 at 5:09 am -
Confused said:
Hi krishna, your post topics are of strong interest to many of us NRIs but sometimes leave us more confused than before. For example in this “How NRI’s can invest in Indian share market” post you say “If you are NRI, then you must have the NRE demat account” but later also say “The NRI can trade in the secondary stock market … … on non-repatriation basis(from NRO PIS a/c)”. So must an NRI have to have a NRE demat or an NRO will do as long as its on a non-repatriation basis? Thanks for all the info you provide … will appreciate further clarification.
June 8th, 2010 at 5:46 am -
Profitshastra said:
NRI can open either NRE or NRO account. You don’t need both unless you have income from Indian sources. In that case, Rupee income from Indian sources can only be deposited in NRO account. NRE or NRO account can be linked to your trading account for investment purposes. Following web page has more information:
June 8th, 2010 at 12:09 pm -
krishnas said:
Hello Profitshastra,
Thank you for the response.
Thanks,
KrishnaJune 8th, 2010 at 8:33 pm -
rushika said:
Best site ever experienced till now is http://www.smartmoneyinvestment.com i joined recently and made 22.5 lacs profit,amazing tips:) rushika from U.S
June 23rd, 2010 at 12:41 pm -
anne said:
sir,
what is your opinion about” smart money investment”- Is it dependable or not?-anneJune 30th, 2010 at 12:50 am
