NRI Centre

India is one of the fastest growing economies in the world with young population and innovative minds at work. India has made considerable progress in last decade. A series of Economic reforms such deregulations; opening Indian markets for foreign investors has made India favorites among global investing community. NRIs should not miss this opportunity of Investing in India today to gain from potential benefits while Indian economy grows further.

This NRI Centre briefs investors on various aspects of NRI services & FAQs.

ACMIIL Service

Introduction :

India means a wider choice of investment opportunities. The Indian Economy is a high growth, low inflation economy and one in which there is increase in foreign investments. During the last decade, there has been a broadening and deepening of financial markets. The country's macroeconomic fundamentals have improved and external vulnerability has been sharply reduced.

Being a Non Resident Indian (NRI) and primarily being miles away from India managing your business development or engaged in job responsibilities, it becomes pertinent to decide how best to manage your investments in the Indian markets. In such a scenario, there are two options available:
  1. Manage investments yourself on a day to day basis.
  2. Outsource its management to a professional entity who will manage it on your behalf in a structured manner.
ACMIIL ONLINE TRADING ACCOUNT FOR NRI'S:
  • We provide you with an online delivery based trading through our website Investmentz.com/Live Exchange. The NRI has the facility to trade on both NSE & BSE and all accounts such as Banking, Demat and Trading accounts are fully integrated to provide a seamless trading experience.
  • NRI will have to open Banking and Demat account with Bank of India and Trading account with Asit C Mehta Investment Interrmediates Ltd (ACMIIL)
  • We also provide you with the facility to place orders after market hours. The orders placed after market hours will be sent to the exchange whenever the exchanges open for trading. The customers can place after market orders in the following time slots:
  • Time Period between 5.30 pm to 9.40 am. It will not accept any market order and only limit orders can be placed. This enables the NRI to make investments at time and place of his choice.
  • We have a dedicated in-house research team, who briefs you on financial and background information of companies alongwith daily/weekly/fortnightly newsletters and reports like Morning Note, Market Watch, Investmentz newsletter etc.
  • We also provide online access to enable you to view your accounts related reports such as contracts, bills, ledgers, trade register, net position details, demat transactions etc.
ACMIIL TRADING ACCOUNT THROUGH VOICE FOR NRI'S:
  • We provide you delivery based trading through Voice Services. The NRI has the facility to trade on both NSE & BSE.
  • NRIs can execute their transactions in the securities market by availing of our Voice services through NRI helpdesk. The dedicated dealer will execute all transactions and give trade confirmations to the NRI. Our Contact numbers are : 9122 28583303,3309 & 3310.
  • We have a dedicated in-house research team who briefs you on financial and background information of companies alongwith daily/weekly/fortnightly newsletters and reports like
    Morning Note, Market Watch, Investmentz newsletter etc.
  • We also provide online access to enable you to view your accounts related reports such as contracts, bills, ledgers, trade register, net position details, demat transactions etc.
INVESTMENT IN MUTUAL FUNDS AND IPOS:

Mutual Funds offer the most suitable opportunity for investors to invest in a diversified, professionally managed basket of securities at a relatively low cost.

ACMIIL provides Mutual Fund & IPO services to NRI investors. NRI's can make investments in Mutual Funds/IPOs either by filling in the forms directly and sending the same to us alongwith the cheque or alternatively, the NRI can issue Power of Attorney to us to enable us to sign application form on his behalf. The second alternative is more convenient and hassle free way for NRI to invest in Mutual Funds/IPOs.

NRI's can invest in Mutual Funds/IPOs out of the funds from NRE/NRO normal accounts.

REPORTS

ACMIIL RESEARCH AND INVESTMENT TOOLS:
  • We provide you with Fundamental and Technical Research.
  • Financial and Background information on companies.
  • We will provide you with Fortnightly newsletter.
  • Other investment tools provided to you are Stock Ticker, Quote Look Up, Charts to view stock prices and alerts section to assist in passive monitoring of selected stocks.
  • News section brings you information regarding general markets, corporates and business, as well as of derivatives, commodities and forex.
  • Research Reports prepared on selected companies by our dedicated in-house research team.

Knowledge Centre

  • Education
  • FAQs
  • Do's and Don't
  • Important Links

Education

VARIOUS CATEGORIES OF NON RESIDENT INDIANS

  1. First, is a Non Resident Indian of Indian Origin holding Indian Passport. This category of NRI's are allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.
  2. A Non Resident Indian holding Foreign Passport and is of Indian Origin. It means that either he or any of his parents/grand parents was a citizen of India by virtue of the Constitution of India. This category of NRI's are allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.
  3. A Non Resident Indian holding Foreign Passport who was not born in India but his spouse is an Indian Citizen. This category of NRI's are allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.
  4. A Foreign Citizen of Non Indian origin. It means that this person is a foreigner. This category is not allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.

VARIOUS CATEGORIES OF NRI ACCOUNTS:

  1. Normal NRE Accounts: This account can be utilized for making investment in new issues of companies as well as for meeting daily routine expenses such as house rent, telephone bills, demat charges, travel expenses etc. Credits from sale proceeds of shares acquired under public issue, cost of acquisition of immovable property etc. can be deposited in this account.
  2. NRE PIS accounts: This account can be utilized only for making secondary market investments on repatriation basis and for depositing the sale proceeds of shares acquired from this account. No other expenses can be paid from this account. All investments made in this account are subject to investment limits as specified by RBI.
  3. Normal NRO Accounts: This account can be utilized for making investment in new issues of companies as well as for meeting daily routine expenses such as house rent, telephone bills, demat charges, travel expenses etc. Credits from sale proceeds of shares acquired under public issue, cost of acquisition of immovable property etc. can be deposited in this account.
  4. NRO PIS accounts: This account can be utilized only for making secondary market investments on non-repatriation basis and for depositing the sale proceeds of shares acquired from this account. No other expenses can be paid from this account. All investments made in this account are subject to investment limits as specified by RBI.

Meanings of various terms mentioned in the Operating Manual

NRE means 'Non Resident External account'. It means monies available in this account can be repatriated abroad.
NRO means 'Non Resident Ordinary account'. It means monies available in this account cannot be repatriated abroad.
  • PIS Account means 'Portfolio Investment Scheme' account.
  • PIO means 'Persons of Indian Origin'
  • RPI means `Repatriable Investments'
  • NRI means `Non-Repatriable Investment'
Person Resident in India: A "Person Resident in India" means:
  1. A person residing in India for more than 182 days during the preceding financial year, but does not include:
    1. A person who has gone out of or stays outside India for employment or business or vocation, or for any other purpose, indicating an intention to stay outside India for an uncertain period.
    2. A person who come to or stays in India otherwise than for employment or business or vocation in India or for any other purpose, indicating an intention to stay in India for an uncertain period.
  2. Any person or body corporate registered or incorporated in India.
  3. An office, branch or agency in India owned or controlled by a person resident outside India.
  4. An office, branch or agency outside India owned or controlled by a person resident in India.
Non – Resident Indian (NRI) means a Person resident outside India who is a citizen of India or is a Person of Indian origin (PIO).

Person of Indian Origin (PIO): PIO means a citizen of any country other Bangladesh or Pakistan
  1. who at any time held an Indian Passport or
  2. who or either of his/her parents or any of his/her grand parents was a citizen of India by virtue of the Constitution of India or Citizenship Act 1955 or
  3. who is a spouse (not being a citizen of Pakistan or Bangladesh) of an Indian citizen or of a person referred to in or above.
Such PIOs are, generally, eligible for all the banking and investment options that are available to NRI's. They stand on a par with the NRI's for purposes of opening bank accounts from abroad or while on a visit to India. However, accounts on behalf of Pakistani or Bangladeshi Nationals should not be opened except with the prior approval of the Reserve Bank of India.

Persons living in Nepal or Bhutan are not eligible to open NRE Accounts.

Foreign Nationals (other than PIOs) whose spouse is an Indian can open NRE Account jointly with the Indian if both are based abroad. Independent NRE Accounts cannot be opened in the names of such foreign nationals.

Portfolio Investment Scheme (PIS)

NRI's are permitted to invest in shares / convertible debentures of Indian companies, by Reserve Bank of India, under Portfolio Investment Scheme (PIS), in secondary market through a registered broker on a recognized Stock Exchange.

Reserve Bank of India, vide A.P.(DIR Series) Circular No. 13 dated November 29, 2001 has prohibited OCBs to invest under PIS in India. Further, the OCBs that have already made investments under PIS have been allowed to continue to hold such shares/convertible debentures till such time these are sold on the stock exchange. The guidelines of Reserve Bank of India in respect of ceiling on investments are as under:

Investment in shares of a company, by each NRI (both on repatriation and non-repatriation basis) shall not exceed 5% of the paid-up value of shares of the company concerned.

Investment in convertible debentures of a company, by each NRI (both on repatriation and non-repatriation basis) shall not exceed 5% of the paid-up value of convertible debentures in eachseries, issued by the company concerned. Aggregate investments by NRIs will be subject to a ceiling of (a) 10% of the total paid-up equity capital of the company concerned: and (b) 10% of the total paid-up value of each series of convertible debentures issued by the company concerned. Such Indian companies shall however raise the ceiling of 10% to 24% or such ceilings a may be decided by the companies, by passing a special resolution in the General body of the company.

In case of investments on repatriation basis, the payment for purchase of shares/ debentures should be by way of debit to the investor's NRE PIS account. In case of investments on non-repatriation basis, the payment for purchase of shares/debentures shall be by way of debit to the investor's NRO PIS account.

The net sale/maturity proceeds of shares / convertible debentures, after payment of taxes, shall be credited only to the investor's NRO PIS account if the investment was made on non-repatriation basis and shall be remitted abroad/credited to the investor's NRE PIS account if the investment was made on repatriation basis.

Designated Branch: As per RBI norms, NRI investors are required to route all their PIS transactions through only one designated branch of a Bank, for the sake of monitoring of NRI holding in a particular company to enable consolidated reporting to Reserve Bank of India.

Opening of accounts with the designated branch:

An NRE PIS savings bank account together with an NRE Demat account, if the investments are to be made on a repatriation basis. The Demat account can be opened with the PIS bank or with Asit C Mehta Investment Intermediates Ltd.

An NRO PIS savings bank account together with an NRO Demat account, if the investments are to be made on a non-repatriation basis. The Demat account can be opened with the PIS bank or with Asit C Mehta Investment Intermediates Ltd.

Form RPI if investments are on repatriation basis and Form RPI will have to be obtained from the investor, if investments are on repatriation basis respectively.

Form NRI if investments are on non-repatriation basis and Form RPI will have to be obtained from the investor, if investments are on repatriation basis respectively.

In case of transfer of accounts, a declaration in respect of shares already held, if any, with details of acquisition and whether acquired on repatriation or non-repatriation basis. If the shares have been acquired on a repatriation basis, the designated branch should insist on a certificate to this effect from the transferring bank. If the shares purchased under PIS account through one bank are to be transferred to another bank, then the transferring bank will issue a certificate that the investment were acquired by debit to PIS NRE/NRE accounts of the investor. A NOC is required for transfer of accounts from the transferor bank.

Prior Holdings of Shares and Debentures:

A non-resident customer opening an account with the bank, under PIS, may bring with him previous holding of stock to be credited to his Demat account. In case of such transfers of stock, the designated branch will verify the whether the shares have been purchased out of repatriable / non-repatriable funds.

In case the shares have been purchased out of repatriable funds through Public offer, the same should be supported by one of the following evidences :

Company's certificate that allotment has been made out of NRI quota of shares or the relative share/debenture certificate which is allotted out of NRI quota on repatriable basis.

Linkage with Demat Accounts:

Under PIS, outflow of funds from the account of the non-resident for investments will eventually be reflected by credit of shares/debentures in his Demat account. In order to ensure that the nature of the investment is kept demarcated as to whether the investment
is on repatriation or non-repatriation basis, a linkage will have to be maintained.:

Non-Resident Repatriable PIS Account
NRE PIS A/c
Securities purchased to be credited to NRE Demat A/c
Non-Resident non-repatriable PIS Account
NRO PIS A/c
Securities purchased to be credited to NRO Demat A/c

Computation of Capital Gains:

The tax liability of the non-resident customer will be computed by the designated branch in respect of sale of shares/debentures on a first-in-first-out basis. A customer-wise register will have to be maintained in the branch for this purpose. Shares fall under financial assets category. If there are capital gains on financial assets held for 12 months or more, they come under the purview of Long Term Capital Gains (LTCG). If held for less than 12 months, they come under Short Term Capital Gains (STCG).

Tax Rates: STCG : 15%
  LTCG : NIL

The PIS Bank will issue TDS certificate on request made by the customer, retaining a copy thereof on the bank's records.

Remittances - Procedure of Funds Transfer to India:

Most common methods of Remittances from abroad:
Wire Transfer
Cheque/Demand Draft from existing NRE/NRO account
Exchange Houses in Middle East

Wire Transfer:
Time: Usually within two business days.
For transferring fund through wire (SWIFT Transfer), the customer/ remitter has to provide the following details to the remitting Bank (his/ her Bankers):

Name and 15 Digit Bank Account number of Customer/ Beneficiary.
Name of the Bank Branch where the Account is maintained/ to be opened along with the type of account.
Details of Bank 's NOSTRO account for the particular foreign currency.
Details of NOSTRO Accounts in Major Currencies:

Currency Name and Address of Correspondent Bank Account Number SWIFT Address


Example of the above remittance :
A customer's instruction to his banker for a transfer through the JP Morgan Chase Account, New York will be as follows:
Pl. credit account no. 0011407376 with JP Morgan Chase Bank, New York, SWIFT Code: CHASUS33NYK, for further credit of NRE A/c ………….. of Mr/Mrs………… with _________Bank, ……… Branch.

# This is just a Remittance format and the same may differ from Bank to Bank.

Cheque/Demand Draft for inward remittance:

For transferring funds through Cheque/ Demand Draft, the customer/ remitter has to forward the Cheque/ Demand Draft to the Designated Branch where the Account is maintained/ to be opened.

The Cheque/ Demand Draft should be made payable to "Designated Bank A/c- (Customer / Beneficiary's Name)".

1. INR Cheque/ Demand Draft payable in India: 2 to 10 working days depending on the location where the Cheque /draft is payable.
2. Foreign Currency Cheque / Demand Draft payable overseas: 7 to 21 working days depending on the location where the Cheque / draft is payable.

FAQs

A. INVESTMENTS UNDER PORTFOLIO INVESTMENT SCHEME (PIS)

1 What is the Portfolio Investment Scheme?

Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of Foreign Exchange Management Act 2000 under which the 'Non Resident Indians' and 'Person of Indian Origin' 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.

2 What is a 'designated bank branch'?

Specific branches of certain banks authorized to conduct operations under PIS on behalf of NRIs.

3 What is the process for NRI to invest in Indian Capital Markets?

  1. Open a bank account with a designated bank branch, which is approved by RBI (Reserve Bank of India).
  2. Apply for a general approval for investment in Indian Stock Market through this designated bank branch.
  3. Open a demat account with a depository participant to act as registered holder of securities.
  4. Open account with registered Broking Firm to execute transactions.
4 Can I have multiple NRE and NRO accounts with designated branches of different authorized banks for the purpose of investing in Indian equity markets under the Portfolio Investment Scheme?

No. All investments in Indian equity markets under the Portfolio Investment Scheme must be routed through only one designated NRE and NRO bank account .

5 Do NRIs need to have separate approvals for investment through NRE and NRO account under PIS Scheme?

Two separate approvals will be granted for investment through NRE and NRO accounts. Application in Form RPI for investment on repatriation and Form NRI for non-repatriation basis.

6 Does NRI need to report PIS transactions to designated bank?

Yes. NRI has to report all secondary market transactions to PIS Bank.

7 Is there any limit for purchase of shares/convertible debentures by NRIs under the Portfolio Investment Scheme?

Yes. An NRI can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be. For the purpose of this ceiling, investment under the Portfolio Investment Scheme on repatriation as well as non-repatriation basis will be clubbed together. There is an overall ceiling of 10% of paid-up equity share capital of the company/paid-up value of each series of convertible debentures for purchase by all NRIs put together. The overall ceiling can be raised to 30% if the company concerned passes a special resolution to that effect in its general body meeting.

Shares/convertible debentures acquired through IPO/Private Placement are excluded for the purpose of above limits.

8 Under what circumstances can investments made under Portfolio Investment Scheme be repatriated?

The repatriation of the sale proceeds, net of taxes, are allowed if the original purchase was made on repatriation basis and such investments were made out of funds from NRE/FCNR account or by means of remittance from abroad.

9 Can NRI engage in speculative trading?

No. An NRI shall not engage in short selling and shall take delivery of shares purchased and give delivery of the shares sold. Intra day trading is prohibited.

B. INVESTMENTS UNDER DIRECT INVESTMENT SCHEME

1 What is investment through Direct Subscription Route?

As per the regulations NRIs are allowed to invest up to a certain percentage of the total paid up capital of the company by directly subscribing to the equity/convertible debentures of the company either through a public offering made by the company or private placements on one to one basis. Regulations provide for different ceilings on such investments based on the industry to which the company belongs and also the nature of investments (repatriation / nonrepatriation basis).

2 Do investments made through subscription to Initial Public Offerings (IPOs) or Private placements also come under the preview of Portfolio Investment Scheme?

No. Investments made by NRIs though subscription to Initial Public Offerings (IPOs) or Private placements are not covered by Portfolio Investment Scheme. Such investments are covered by RBI's regulations with regard to Foreign Direct Investments.

3 Do NRIs need any permission of RBI to subscribe to Mutual Funds/Initial Public Offerings (IPOs) or Private placements of equity shares/convertible debentures of existing or new companies?

No. NRIs do not require any permission to invest though Initial Public Offerings (IPOs) or Private placements.

4 Do NRIs need any approval from Reserve Bank of India for selling of the securities acquired through IPOs/Private Placement?

No. NRIs can sell such shares/debentures on the Exchange without any approval. However, at the time of sale, the NRI will have to furnish copy of the allotment letter to enable the bank to determine the cost of acquisition and for deducting tax on capital gains.

5 Do NRIs need to route the sale of securities acquired through IPO/Private Placement through the designated bank branch for Portfolio Investment Scheme, if any?

No. The shares/convertible debentures acquired under IPO cannot be routed through designated bank account meant for Portfolio Investment Scheme.

6 Can NRIs make investments in Mutual Funds and IPOs (Initial Public Offer) from PIS Account?

No. NRIs are only permitted to make investments from their normal NRE and NRO A/c's.

7 Can NRIs make Investments in Derivative Instruments?

Yes. NRIs can make investments in Derivative Instruments out of their normal NRO savings bank account.

C. GENERAL INFORMATION PERTAINING TO NRIS

1 Who is an NRI?

a. Indian citizens who stay abroad for employment or for carrying on a business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India.

b. Indian citizens working abroad on assignments with foreign Governments/government agencies or International/Regional Agencies like the UNO, IMF, World Bank, etc.

c. Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad

2 What are the types of accounts are permitted to be maintained by NRI's?

  1. Normal NRE Accounts : This account can be utilized for making investment in Mutual Funds, new issues of companies as well as for meeting daily routine expenses such as house rent, telephone bills, demat charges, travel expenses etc. Credits from sale proceeds of shares acquired under public issue, cost of acquisition of immovable property etc. can be deposited in this account.
  2. NRE PIS accounts : This account can be utilized only for making secondary market investments on repatriation basis and for depositing the sale proceeds of shares acquired from this account. No other expenses can be paid from this account. All investments made in this account are subject to investment limits as specified by RBI.
  3. Normal NRO Accounts : This account can be utilized for making investment in Mutual Funds, new issues of companies as well as for meeting daily routine expenses such as house rent, telephone bills, demat charges, travel expenses etc. Credits from sale proceeds of shares acquired under public issue, cost of acquisition of immovable property etc. can be deposited in this account.
  4. NRO PIS accounts : This account can be utilized only for making secondary market investments on non-repatriation basis and for depositing the sale proceeds of shares acquired from this account. No other expenses can be paid from this account. All investments made in this account are subject to investment limits as specified by RBI.
  5. FCNR (B) account : This is a Foreign Currency Non Resident deposit account maintained in US Dollars, Pound Sterling, Euro & Jap Yen.
3 What are the various categories of Non Resident Indians?

  1. First, is a Non Resident Indian of Indian Origin holding Indian Passport. This category of NRI's are allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.
  2. A Non Resident Indian holding Foreign Passport and is of Indian Origin. It means that either he or any of his parents/grand parents was a citizen of India by virtue of the Constitution of India. This category of NRI's are allowed to make investments under PIS
  3. Scheme under repatriation and non-repatriation basis.
  4. A Non Resident Indian holding Foreign Passport who was not born in India but his spouse is an Indian Citizen. This category of NRI's are allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.
  5. A Foreign Citizen of Non Indian origin. It means that this person is a foreigner. This category is not allowed to make investments under PIS Scheme under repatriation and non-repatriation basis.
4 What is the difference between NRE and NRO accounts?

Funds remitted from abroad or local funds, which can otherwise be remitted abroad to the account holder, can be credited to NRE Accounts. Local funds, which do not qualify for remittance outside India, are required to be credited to NRO accounts.

5 Can money be transferred from NRE account to NRO account or vice versa?

Funds can be freely transferred from NRE account to NRO account. No funds can be transferred from NRO account to NRE account.

6 Are the NRI's permitted to give a Power of Attorney to a resident Indian to operate the Non - resident accounts?

A Power of Attorney is given only for operations of Bank account & not for opening the account. Further the operations are restricted only for making legitimate local payments out of their NRE or NRO A/c's. In no circumstance is the Power of Attorney holder allowed to repatriate the funds abroad or make payments of gifts on behalf of the account holder.

7 Are those funds in the form of incomes/interest earned on investments/deposits held in India by Non-Resident Indians on a non-repatriable basis qualify for free repatriation to the place of residence of the Non-Resident Indian?

The Non-Resident Indians are permitted to repatriate the incomes/interest earned on investments/deposits held in India on a non-repatriable basis, other than the profit/gains realized on sale of immovable property. Current Income such as rent, dividend, pension and interest can be repatriated freely subject to payment of taxes. Balances in NRO Account can be repatriated for any purpose upto One million US Dollars or equivalent per calendar year subject to payment of taxes or a Chartered Accountant's Certificate to the effect that taxes have to be paid/provided for.

8 What is a Demat Account? What is a Depository? Who is a Depository Participant?

A demat account is one by which the investor is able to hold his securities in electronic form as beneficial owner through opening such account with a depository participant.

A depository holds the securities of investors in electronic form just like a bank holds cash for its customers. As in a Bank, securities get credited/debited on purchase/sale through an registered Broking Firm. The National Securities Depository Limited (NSDL) and Central Depository Services Ltd (CDSL) are the two depositories in India. Their functions are regulated by the Securities and Exchange Board of India (SEBI).

The Depository Participants (DPs) are the link between the Shareholder, the Company and Broking Firm. Banks, Financial Institutions, Custodians, Stock Brokers etc. can become DPs subject to their meeting certain requirements prescribed by NSDL / CDSL and SEBI. You can open your accounts with one or more DPs, as you like. The procedure for opening an account with theDepository Participant is similar to opening a Savings Bank Account. After opening the account, you can hold shares of any number of companies in your account, provided all such companies have entered the depository system.

9 What are the tax obligations applicable to NRIs?

Income on investments (capital gains) forming part of sales proceeds are subject to Capital Gains tax. Long-Term capital gain (arising out of sale of shares/debentures held for more than 12 months from the date of its acquisition) is not applicable to tax. Short-Term capital gain (arising out of sale of shares/debentures held for a period of less than 12 months from the date of its acquisition) will be levied tax at the rate of 15%.

10 What is a Pan Card?

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.

11 Is Pan Card compulsory for opening Investment account in India?

Pan Card is not compulsory for opening Bank accounts in India. However, if an NRI wishes to open demat account with any of the recognized depositary participants, Copy of Pan card has to be submitted.

12 What form is required to be filled for obtaining Pan Card?

The NRI has to submit an application in Form 49A for obtaining PAN card. To view/print copy of

Form 49A, just click on the website link https://www.tin-nsdl.com/download/pan/form49aa.pdf This form can be submitted to UTI Investor Services Ltd, NSDL or Income Tax offices in India. NRI has to furnish the address of his local representative in India for communication purposes.

Do's and Don't

  • Always remember your User ID and Password for accessing our website/Trading account.
  • If you wish to sell your shares, always check available quantity in your account
  • Please ensure that no firewalls are used in your computer as it can prevent the website/Trading operations
  • Kindly remove all search toolbars such as Google, msn messenger, rediff messenger etc as same will obstruct smooth trading through our website
  • Please call our help desk for Non-trading related queries after the close of market hours only.

Important Links

RBI : http://www.rbi.org.in
Income Tax : http://incometaxindia.gov.in
SEBI : http://www.sebi.gov.in
BSE : http://bseindia.com
NSE : http://nseindia.com
Pancard Appln : https://www.tin-nsdl.com/download/pan/form49aa.pdf
Bank of India NRI A/c Form : www.bankofindia.co.in/doc/formnri.doc
Bank of India NRI PIS A/c Form : Click Here
ACMIIL Online Trading Kit : Click Here
AXIS Bank NRI Form – Offline clients : http://www.axisbank.com/xmlapplication/nri/pdf/NRI-Ac-OpeningForm.pdf
AXIS Bank PIS form – Offline clients : http://www.axisbank.com/xmlapplication/nri/pdf/NRI-PIS-Account-Opening-Form.pdf (For offline/PMS clients)
ACMIIL Offline Trading Kit : Click Here

Getting Started

  • Register Now
  • Advantages
  • Registration Formalities
  • Registration Forms

Register Now

Advantage of opening account with us


Advantages of registration and enrolling as our Online clients will provide you with benefits like:
  1. Access to quote look up facility & Ticker.
  2. Cash & Derivatives segment market participation.
  3. BSE & NSE trading facility with unified limits (in the cash segment)
  4. Facility for using Browser based trading platform
  5. Facility for off market hour order acceptance
  6. Charts with analytical tools
  7. No minimum trade deposit maintenance criteria
  8. Attractive terms for Demat Services
  9. Facility for Online Blocking of funds for investment through our designated banks
  10. Access to Fundamental & Technical research
  11. Web access for your Accounts services on 24 x 7 basis
  12. High security with 128-bit encryption

Registration Formalities


TERMS AND BUSINESS RULES FOR NRIS

ONLINE ACCOUNT

Operational Flow on purchase and sale transaction by you, as an NRI, through Online Trading business mode is stated here :
  • Open an ACMIIL trading account.
  • Open NRE / NRO demat account with bank of India
  • Open NRE-PIS Bank account (repatriable funds-RPI) or NRO-PIS Bank account (non-repatriable funds-NRI) with a Bank of India. These accounts will be only for PIS transactions.
  • Application to designated bank for Portfolio Investment Scheme (PIS) through investmentz.com.
  • Bank issues PIS approval letter for making investment under PIS.
  • Copy of Power of Attorney for Banking and Demat account to be given to Bank of India , duly stamped and notarized (each on a Rs.400 stamp paper).
  • Existing shares can be transferred from another DP, along with a No Objection Certificate from the transferring DP and a certificate confirming the status of the scrips (whether purchased under repatriation or non repatriation basis).
Purchase Transaction:
  • Client can place buy order through website and equivalent funds in bank account will be blocked with Bank of India.
  • We deliver the contract note at the PIS designated bank branch on the day of transaction or within 24 hrs.
  • Individual NRI investment ceiling will be monitored, as per the regulatory requirement.
  • Funds will be debited to clients account on T+1 day
  • Shares purchased will credited to client's demat account on T+2 day
  • Reports on PIS transactions are sent to RBI on daily basis, by the bank
Sale Transaction
  • Client can place sell order through website and equivalent shares in depositary account will be blocked with Bank of India.
  • We deliver the contract note at the PIS designated bank branch on the day of transaction or within 24 hrs.
  • Individual NRI investment ceiling will be monitored as per the regulatory requirement.
  • Shares will be debited to clients account on T+1 day
  • Payment for Shares sold will be credited to client's bank account on T+2 day
  • Reports on PIS transactions are sent to RBI on daily basis, by the bank
  • Bank will compute capital gains on the transaction and debit tax, if any and credit the net proceeds to your bank account.
DOCUMENTS REQUIRED FOR OPENING THE ACCOUNTS
  • Two Passport size photographs
  • Two Passport copies
  • Two Pan card copies from Income Tax.
  • POA Document for Banking and Demat accounts with BOI.
  • Proof of Foreign Residence through copies of Utility Bills such as Telephone, Electricity Bills etc, not more than two months old
  • Two Client Depositary Master copies.
  • PIS approval copy from Bank.

OFFLINE ACCOUNT

Operational Flow on purchase and sale transaction by you, as an NRI, through Offline Trading business mode is stated here
  • Open an ACMIIL trading account.
  • Open NRE / NRO demat account with investmentz.com.
  • Open NRE-PIS Bank account (repatriable funds-RPI) or NRO-PIS Bank account (non-repatriable funds-NRI) with Axis Bank. These accounts will be only for PIS transactions.
  • Open Savings NRE / NRO account with Axis Bank.
  • To obtain Permission for Portfolio Investment Scheme (PIS) through Bank
  • Letter of Authority to be given to Axis Bank.
  • Existing shares can be transferred from another DP, along with a No Objection Certificate from the transferring DP and a certificate confirming the status of the scrips (whether purchased under repatriation or non repatriation basis).
Purchase Transaction:
  • Before a buy order is placed through offline mode on phone, funds in the Portfolio
  • Investment Scheme (PIS) account will have to be made available by the client to meet the transaction obligation by the bank to us.
  • We will deliver the contract note at the PIS designated bank branch on the day of transaction or within 24 hrs.
  • After verifying the transactions, the designated bank would debit PIS bank account and credit our bank account or issue a pay order to us.
  • We will monitor individual NRI investment ceiling as per the regulatory requirement.
  • Reports on PIS transactions are sent to RBI on daily basis, by the bank
Sale Transaction:
  • Once an order is placed on phone through us, securities in the Demat account (opened through our DP) the delivery obligation will be met through demat account opened with us
  • We will submit contract note at the PIS designated bank branch on the day of transaction or within 24 hrs.
  • Proceeds are credited to your PIS bank account after payout, i.e., T+2 day.
  • Bank will compute capital gains on the transaction and debit tax, if any it to your bank account, and pay to government.
  • Bank will deduct 15% tax on short-term capital gains and nil tax on long-term capital gains.

Registration Forms


ACCOUNT OPENING FORMS