NRI
should have PAN Card; if he does not have then he has to
apply as per prescribed procedure for Pan Card as NRI.
•
RBI
permission is mandatory for secondary market investment,
however, the designated bank branch through which PIS
Account is opened obtaining such permission to NRI thus NRI
does not have to make application direct with RBI.
•
The NRI
can deal with only one designated bank branch for PIS
account at any point of time.
•
NRI is
allowed to invest only 5% of the paid up capital of a
company. The aggregate paid up value of equity of any
company. The aggregate paid up value of equity of any
company purchased by all NRI’s and OCBs can not exceed 10%
of the paid up capital of the company and in the case of
convertible debentures, the aggregate paid up value of each
series of debentures purchased by all NRI’s and OCBs can not
exceed 10% of the paid up value of each series of
convertible debentures. However, we at Kunvarji daily track
of available limit and scrip banned by RBI, therefore our
clients are not required to keep track of such limits.
•
NRI can
enter only into delivery based trades; Intraday is not
permissible.
•
Shares
bought by NRI, can not be sold unless the payout of the same
is received from the exchange.
•
All
purchase and sale transactions have to be reported to the
RBI by the designated bank.
•
Original
brokers’ contract notes have to be submitted to the
designated bank branch, within 24 hours of the transaction.
•
NRI will
be required to make bill to bill payments/ settlement. No
adjustment of purchase against sale consideration should be
done.
•
All
purchase and sale will be dealt separately for payments/
receipts.
•
Sale
proceeds of any transaction not reported to the RBI are not
allowed to be credited in the NRE/ NRO PIS savings/Demat
account.
•
All tax
liabilities arising out of buying and selling of securities
will be handled by the designated bank.
•
Bank will
issue Tax Certificate and account statement to the client at
the end of the year to enable him to file Income Tax
Returns.
•
NRI can
repatriate his funds any time; he has to instruct bank with
his bank name, account number, routing code and SWIFT Code.
Bank will transfer the funds.
