What i need to know about NRI?
- Non-Resident Indian (NRI) means a 'person resident outside India' who is a citizen of India or is a person of Indian origin.
NRI Investment Options in Indian Stock Market
- NRIs can purchase shares or convertible debenture of an Indian Company, Invest in Exchange Traded Funds (ETFs) and trade in futures & options segment.
- Note: Intra-day trading in cash segment is not allowed to NRIs.
What is the advantage for NRI over the resident?
- NRI does not have any advantage over Resident Indian except money brought-in in foreign currency and invested through PIS route can be taken abroad post payment of applicable taxes along with interest, dividend and capital gains. The Liberalized Remittance Scheme (LRS) is a facility provided by the RBI for all resident individuals including minors to freely remit up to a certain amount in terms of US Dollar for current and capital account purposes or a combination of both. The present limit under LRS is Rs 2,50,000 USD per financial year per person .
Account are required to be opened by an NRI for investing in Indian secondary markets:
- NRE/NRO Savings Bank Account
- NRE/NRO PIS Account
- NRE/NRO Demat Account
- NRI Brokerage Account
What is Portfolio Investment Scheme (PIS)?
- Portfolio Investment Scheme PIS is the scheme of RBI through which NRIs and PIOs can purchase and sell shares and convertible debentures of Indian companies on a recognized stock exchange in India by routing all their transactions through a designated bank branch on repatriation benefit basis. There are few branches of some Banks that are designated by RBI that a NRI can have account with in order to invest in Indian Share Market