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 authorized dealer in India in the prescribed form.
Reserve Bank has authorized a few branches of each authorized 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 authorized dealer branches who have authorization from Reserve Bank.
The banks Authorized to accept PIS applications are HDFC, UTI, ICICI Bank
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.
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