We Provide Investment Solutions to Global Indian. Following Are Products & Services
Offered to NRI
- NRI service desk for Personalized assistance to NRI / PIO clients
- Investment Advisory
- E-Broking Platform for Online Equity Trading
- Depository Services with CDSL
- IPO & Mutual Fund Advisory and Distribution Services
- Support for Banking – PIS account opening
- Pan Card assistance [https://tin.tin.nsdl.com/pan/index.html]
Non-Resident Indian (NRI)
A person who has gone out of India or who stays outside India for any of the following
reasons is called as NRI :
- Taking up employment
- Business or vocation
- Any other purpose, in such circumstances as would indicate his intention to stay
outside India for an uncertain period
- Indian citizens working abroad on assignments with foreign Governments/Government
agencies or international/regional agencies like the UNO, IMF, World Bank etc.
- Officials of Central and State governments and Public Sector Undertakings deputed
abroad on temporary assignments or posted to a Branch/Office (including diplomatic
missions) abroad
- Indians settled abroad permanently
- Indians gone abroad on immigration
- Crew members of Indian nationality or Indian origin employed by foreign airlines/shipping
companies, if they are based at foreign ports and reside abroad
- Students going abroad for studies are treated as Non Resident Indians (NRIs) and
are eligible for all the facilities available to NRIs under FEMA
Person of Indian origin (PIO)
Investor is deemed to be a person of Indian origin if Investor is a foreign citizen
(other than of Pakistan or Bangladesh), and if
- Investor have at any time held an Indian passport
- Investor or either of Investor parents or any of Investor grandparents were citizens
of India by virtue of the Constitution of India or the Citizenship Act, 1955.
- Investor is the spouse of an Indian citizen or of a person of Indian origin (other
than of Pakistan or Bangladesh)
NRI’s are granted the following facilities:
- Maintenance of bank accounts in India.
- Investments in securities/shares, and deposits with banks, Indian firms/companies.
- Investments in immovable properties in India.
NRI Bank Account
There are two options an NRI interested in opening a bank account in India
- NRE account A NRE bank account is an external saving bank account opened for Non
resident Indians. This is why it is known as Non-Resident External account. Since
it is an external account, any monies lying in NRE account can be taken outside
the country or in other words, the monies lying in NRE account 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.
- NRO account A NRO bank account is an ordinary saving bank account opened for Non
resident Indians. This is why it is known as Non- Resident Ordinary account. Since
it is an ordinary account i.e. as good as a normal saving bank account, monies lying
in NRO account cannot be taken outside the country or in other words, the monies
lying in NRO account are not repatriable.
Difference between NRE & NRO
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NRE
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NRO
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Funds remitted from abroad or local funds, which can otherwise be remitted abroad
to the account holder, can be credited to NRE Accounts.
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Local funds, which do not qualify for remittance outside India, are required to
be credited to NRO accounts.
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Funds can be freely transferred from NRE account to NRO account
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No funds can be transferred from NRO account to NRE account
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Money once credited into NRE account can be transferred back to NRO account.
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Money once credited into NRO account cannot be transferred back to NRE account.
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When a resident becomes non-resident Indian their existing bank account in India
become NRO Account
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Repatriation from NRO balances
Authorized Dealers can allow remittance/s up to USD 1 million per financial year
(April-March) for bonafide purposes, from balances in NRO accounts subject to payment
of applicable taxes. The limit of USD 1 million per financial year includes sale
proceeds of immovable properties held by NRIs/PIO.
NRI Investment Opportunities
- Term Deposits (NRE/NRO)
- FCNR: Presently the term deposit can be placed with ADs in India in 6 specific foreign
currencies (US Dollar, Pound Sterling, EURO, Japanese Yen, Australian Dollar and
Canadian Dollar).
- Government dated securities/treasury bills.
- Mutual Funds.
- Bonds issued by a public sector undertaking (PSU) in India.
- Non-convertible debentures of a company incorporated in India.
- Shares and convertible debentures of Indian companies through stock exchange under
Portfolio Investment Scheme.
- Real Estate
A Comparative Study
Hot Investment
Options for NRI
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Investment Restrictions
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Return on Investment
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Risk of Loss
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Liquidity
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Mutual Funds
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No Restriction
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Equity Based : High
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Equity Based: High
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Medium-High
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Debt Based :
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5-10%
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Money Market Based: 3-6%
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Debt Based: Low
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Shares/Debentures
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Through stock exchange (Facilities are granted on both repatriation and non repatriation
basis).
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18% - 20% Depending on Market
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High
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Low-Medium
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Real Estate
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No Restriction
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Tax exemption available on re-investment of long term
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High
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Low-Medium
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(> 36 months) capital gains in specified avenues
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Bank Deposit
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No Restriction
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1-5% (for NRE/FCNR based on term and currency)
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Low
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High
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Business
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Up to 100% in majority of sectors
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No specific % as it varies acc. to business model and sector
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No specific % as it varies acc. to business model and sector
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Low
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Investing in share market yields higher profits with no Restrictions & High Liquidity.
Three simple Steps to invest in Indian Secondary Market :
- Open a NRE/NRO bank account with a designated bank in India.
- Apply for Portfolio Investment Scheme through this designated bank branch (PIS approval
from RBI).
- Open a Demat and Trading account with Urja investment.
Portfolio Investment Scheme (PIS)
Portfolio Investment Scheme (PINS / PIS) is a scheme of the Reserve Bank of India
(RBI) under which the ‘Non Resident Indians (NRIs)’ and ‘Person of Indian Origin
(PIOs)’ can purchase and sell shares and convertible debentures of Indian Companies
on a recognized stock exchange in India by routing all such purchase/sale transactions
through their account held with a Designated Bank Branch.
PIS account is applicable only for NRI’s / PIO’s and not for resident clients.
It is required for trading in Secondary markets only.
It is not required for MF or any other investments like IPO or real estate.
Benefits of PIS :
- PIS is a routing a/c
- PIS a/c makes financial obligations of secondary markets simpler for NRI
- It is mandatory for all NRI to complete their Financial as well as Security pay-in
payout on T+2 that to on bill to bill basis
- Broker takes care about security obligations (provided he has clients DP along with
Auto pay-in with him)
- Hence PIS acts as a routing a/c to fulfill financial obligation
- Ex: whenever NRI buy’s, money will be pulled from his PIS a/c on T+1 against contract
bill
- Similarly whenever NRI sells money will be deposited in PIS a/c against contract
bill on T+3
- This makes financial obligations of NRI’s hassle free
NRI invest in Indian Secondary Market
As Whole
- Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to
invest in the primary and secondary capital markets in India through the portfolio
investment scheme (PIS)
- Under this scheme, NRIs can acquire shares/debentures of Indian companies through
the stock exchanges in India.
- The ceiling for overall investment for NRIs/PIOs 10 per cent of the paid up capital
of the Indian company
- the ceiling of 10 per cent for NRIs/PIOs can be raised to 24 per cent subject to
the approval of the general body of the company passing a resolution to that effect.
- The total purchase of all NRIs/PIOs both, on repatriation and non-repatriation basis,
being within an overall ceiling limit of (a) 24 per cent of the company's total
paid up equity capital and (b) 24 per cent of the total paid up value of each series
of convertible debenture; and
As Single NRI
The investment made on repatriation basis by any single NRI/PIO in the equity shares
and convertible debentures not exceeding five per cent of the paid up equity capital
of the company or five per cent of the total paid up value of each series of convertible
debentures issued by the company.
Trading & Demat A/C Opening
- Passport copy. ( Pass Port Number , Validity , Address , issued date )
- P.I.S. Permission letter.
- Foreign address proof.
- Ration Card
- Electricity Bill
- Telephone Bill
- Driving Licenses
- India addresses proof.
- Ration Card
- Electricity Bill
- Telephone Bill
- Driving Licenses
- Pan card copy.
- 3 Passport Size photograph.
- If Client want to give POA then – Photo of POA, PAN of POA is required
- Fema Declaration
Instructions For Documentation
- In Person verification of the Client is a must on each & every document Submitted
- Documents collected are to be attested by the Indian Embassy/Consulate General/Notary
Public/Any Court/Magistrate/Judge/Local Banker in the country where the NRI/FN resides.
The Attesting Authority must affix a Verified with Originals stamp on all documents
submitted for Account opening and the same should be self attested by the NRI/FN.
If the NRI/FN comes in person to open the account, the above attestation requirement
is not applicable.
- Compulsory Demat a/c in Urja along with an active POA (For Auto Pay-in).
- PIS a/c with any designated bank
Process Chart :
A/C Opening -
NRI Client
Client Open a NRE / NRO bank account & flags it as PIS account
Clients submits KYC documantation along with the Bank PIS approval letter
Client is Ready to Trade
Bank Blocks Funds in PIS
Client code generated
Transaction-Purchase -
Client Executes By orders (Online / Offline)
On next day we send Contract notes(ECN) to Bank
Bank Checks ban / caution
In case of ban Caution Bank Rejects Contract Note
Else Bank Debits ClientNRE / NRO - PIS A/C& Credits Urja's A/C
Transaction Sell -
Client ExecutesSell Orders(Online / Offline)
On next daywe pull Sharesfrom yourDemat A/C
On T+2nd Day werelease payment tobank along withContrct Note
Process Chart :
A/C Opening -
NRI Client
Client Open a NRE / NRO bank account & flags it as PIS account
Clients submits KYC documantation along with the Bank PIS approval letter
Client code generated
Bank BlocksFunds in PIS
Client is Readyto Trade
Transaction-Purchase -
Client ExecutesBy orders(Online / Offline)
On next day we sendContract notes(ECN)to Bank
Bank Checksban / caution
In case of banCaution BankRejects ContractNote
Else Bank Debits ClientNRE / NRO - PIS A/C& Credits Urja's A/C
Transaction Sell -
Client ExecutesSell Orders(Online / Offline)
On next daywe pull Sharesfrom yourDemat A/C
On T+2nd Day werelease payment tobank along withContrct Note
Bank CreditsClients a/c
Trading Norms
- Only Cash market delivery based transactions allowed for NRI / PIO clients
- Intraday / Commodities / Currency trading Not allowed.
- Exchange Traded Funds [ETF] are allowed on a case to case basis. Please refer to
NRI helpdesk for more information.
- Compulsory Transfer of holdings to the Demat on every purchase.
- Selling allowed only from the Demat a/c. Charges as applicable will be charged when
selling through demat account.
- Online limits will be set as per balance available in PIS
- NRI Services desk will take care of Risk Management as well as interactions with
the banks.
- The desk also keeps a watch on list of banned scripts by RBI.
RBI Banned Scrip
- As per RBI Guidelines, NRI investments in equity shares should not exceed 5% of
the paid up equity capital of the company. NRI client should verify from RBI Website
using the following link http://www.rbi.org.in/scripts/BS_FiiUser.aspx before buying
of any equity shares / debentures. Please refer to NRI helpdesk for an updated on
banned scripts.
- In case the purchase of shares / debentures in a company exceeds the prescribed
limits the customer would be instructed to sell the said shares / debentures immediately
on the same day or on the next working day in case the market is closed for the
day.
Taxation – Capital Gain / Dividends
- Long Term Capital Gain : NIL
- Short Term Capital Gain : 11.33%
- Dividend : NIL
Note: - Above is solely dependent on Finance Act - GOI
Corporate benefits
- Dividends: Dividends are given on a repatriable or non – repatriable basis as the
case maybe.
- Right issue: The issuer has to take RBI’s approvals for repatriable basis. The right
thus acquired is on repatriable basis only if the original shares were on the same
basis.
- Bonus: The issuer has to take RBI’s approvals for repatriable basis. The bonus shares
thus acquired is on repatriable basis only if the original shares were on the same
basis and the NRI/ PIO Investor has funded these shares from repatriable account.