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The following are the various types of rupee
accounts available for Non-Resident Indians:
Non-Resident Ordinary Account
Non-Resident (External) Rupee Account |
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| A NRO bank a/c is an ordinary saving bank a/c
opened for NRIs. This is why it is known as Non-Resident
Ordinary a/c. Since it is an Ordinary account i.e. as good
as a normal savings bank a/c, money lying in NRO account can
not be taken out side the country or in other words, the
money lying in the NRO a/c is not Repatriable. |
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| A NRE bank a/c is an external saving bank a/c
opened for NRIs. This is why it is known as Non-Resident
External Accounts. Since it is external a/c, any money lying
in NRE account can be taken out side the country or in other
words, the money lying in NRE a/c 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. |
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| Yes, money can be freely transferred from NRE
account to NRO account. |
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| No, money cannot be transferred from NRO account to
NRE account. |
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| RBI has advised banks to re-designate such accounts
as resident account on return of the account holder to
India. |
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| As per section 6(5) of FEMA, NRI can continue to
hold the securities, which he/she had purchased as a
resident Indian. After he/she has become a non-resident
Indian, he/she has to transfer the shares to his NRO (Non
Resident Ordinary) account. |
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| Portfolio Investment Scheme (PIS) is a scheme of
the Reserve Bank of India which defines that Non Resident
Indians can purchase and sale shares and convertible
debentures of Indian Companies on a recognized stock
exchange in India by routing all such purchase/ sale
transaction through their a/c held with a designated bank
branch. PIS account is one type of saving account with bank
only for NRI’s secondary market transaction. |
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Any NRIs want to trade/make fresh investment in the
Indian equity secondary market needs and must have one PIS
account with only one designated bank in India.
Note :-
1. PIS a/c is only for NRIs
2. It is only for trading in Indian market not for foreign
market.
3. It is applicable only for equity trade not for MFs
investment. PIS Account-Eligibility
Foreign Institutional Investors (FIIs), Non-Resident Indians
(NRIs), and Persons of Indian Origin (PIOs) are allowed to
invest in the secondary capital markets in India through the
portfolio investment scheme (PIS). Under this scheme,
FIIs/NRIs can acquire shares/debentures of Indian companies
through the stock exchanges in India. |
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Ceiling-PIS Scheme
The ceiling for overall investment for FIIs is 24 per cent
of the paid up capital of the Indian company and 10 per cent
for NRIs/PIOs. The limit is 20 per cent of the paid up
capital in the case of public sector banks, including the
State Bank of India. |
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| NRI/PIO can open only one PIS account with any
designated banks (Preferred bank – Axis Bank) in a
prescribed format for PIS account, upon which the bank can
issue a PIS approval letter to the investor. |
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| No, any investment done in equity shares through
secondary market should be routed through a PIS account.
Investments like Mutual Funds, IPO etc can be done through
direct subscription route. |
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| A Trading Account will enable you to buy and sale
shares in the secondary market. The trading account must be
in the name of an individual but the account can be tied to
a jointly held depository account provided the trading
account holder is any one of the holders of the joint
depository account. |
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| Most shares being available only in the electronic
form, a Depository account is a precondition for trading in
the secondary market. Kunvarji is a registered member
(Depository Participant) of CDSL. You can avail of all the
depository-related services by just opening an account with
CDSL through Kunvarji. |
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There are two types of demat accounts
Repatriate Demat Account
Non Repatriate Demat Account |
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| In order to open an account, customer will have to
submit the following documents. For Bank
Accounts |
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Passport copy where
identity, place of birth, signature and arrival date
appear |
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Valid visa (if Indian
Passport) |
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Foreign Address Proof
(Utility Bill/ Driving License/ Bank statement) |
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Indian Address Proof (
If Possible) |
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PIO Card ( if client is
having foreign passport and there is no PIO Card then you
need to produce relevant proof of father or grandfather
who were living in India |
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3 Photographs For
Demat and Trading Account ( 2 sets of Following are
required) |
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PAN Card |
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Passport copy where
identity, place of birth, signature and arrival date
appear |
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Foreign Address Proof
(Utility Bill/ Driving License/ Bank statement) |
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Indian Address Proof (
If Possible) |
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PIO Card ( if client is
having foreign passport and there is no PIO Card then you
need to produce relevant proof of father or grandfather
who were living in India |
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RBI Approval Letter |
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NRE/NRO Bank Statement |
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NRE/NRO Cancel cheque
copy |
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Photographs |
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| Note :- All documents, self attested as per pan
card signature and if client is out side India at the time
of application in that case photocopies of all the KYC
documents/proofs and PAN card are attested by the Indian
Embassy or / Consulate General / Notary Public / Any Court /
Magistrate / Judge / Local Banker in the country where the
NRI or FN resides. The attesting authority should affix a
“verified with originals” stamp on the said documents. The
photocopies of the KYC documents and PAN card should also be
signed by the NRI/FN. If the NRI or FN comes in person to
open the account, the above attestation requirement may be
waived. |
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Ans. You can apply for PAN by
filling up Form 49A: Application for Allotment of Permanent
Account Number (PAN application form). You can also apply
for PAN online through NSDL-TIN website.
SEBI has mandated that person entering into transaction on
Stock Exchange as well as person having demat account must
have PAN Card Number which is to be maintained by the broker
and DP in their client database.
Kunvarji Finstock Pvt Ltd is providing professional
assistance for obtaining PAN Card as per request from NRI. |
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Ans. You have to submit the
following documents with the application form:
A] Proof of identity-
B] Proof of address –
C] Photograph |
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| Proof
of Identity and Proof of Address for non resident PAN
applicants |
| Status of the applicant |
Individual
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| Proof
of Identity |
Copy
of passport, duly attested by Indian Embassy in the
country where applicant is located. |
| Proof
of Address |
copy
of bank account statement in country of residence, duly
attested by Indian Embassy in the country where applicant
is located |
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