Presentation On

NRI Investment Guidelines…

By.Mr. Arihant. Aj

NRI means?

• .According to the act, any Indian citizen who does not meet the criteria as a "resident of India" is a non-resident of India and is treated as NRI for paying income tax.

• NRI is someone who was residing outside India for at least 182 days in a financial year. [as per the Indian Income Tax Act, 1961].

• A Non-resident Indian (NRI) is a person who is a citizen of India or a person of Indian origin, currently residing outside India. To qualify for NRI status you must:

• (1) Reside outside India for more than 182 days per year, and;

• (2) Hold Indian citizenship, or;• (3) Be a Person of Indian Origin (PIO) as defined in

the Foreign Exchange Management Deposit Regulations of 2000

• Condition no.1 is mandatory and condition 2 OR 3 should be satisfied

Steps To Be Followed;

• Step 1 : Get the PAN Card• Step 2 : Open an NRE/NRO account.• Step 3 : Open demat/trading account.

General documents required to open a share investment account:

• Self attested Copy of Passport & Visa• Self attested Copy of Indian Address proof &

Overseas Address proof.• Self attested Copy of Pan Card• Passport size photos.• Bank statement for 3 months• A cancelled cheque and a cheque for initial

investment.

NRI Investments

• On the basis of Repatriation or Non – repatriation• Equities• ETF • IPOs• Convertible Debentures• Dated Govt. Securities• Units of domestic mutual funds• Bonds issued by PSUs

• Since from 1991 Indian has opened up for NRI, FII investment

• NRIs can ONLY invest in Indian stock market under the Portfolio Investment NRI Scheme (PINS) of the Reserve Bank of India (RBI).

• NRIs can have more than one trading and demat account but can have only one bank account linked to those accounts. This bank account can be an NRE account or an NRO account.

• NRIs are not allowed to trade intra-day but can trade in the F&O segment.

• An NRI can purchase up to a maximum of 5% of the paid up equity share capital of the company (equity as well as preference capital);

• An NRI can purchase up to a maximum of 5% of the each series of convertible debentures of the company;

• There is an overall ceiling of 10% of paid-up equity share capital of the company for purchase by all NRIs put together

• However, this overall ceiling can be raised to 24 % if the company passes a special resolution to that effect in its general body meeting.

What is Portfolio Investment NRI Scheme?

• Under PINS scheme of the RBI (defined in Schedule 3 of Foreign Exchange Management Act 2000), NRIs and Persons of Indian Origin (PIOs) can buy/sell shares and convertible debentures of Indian companies on a recognized stock exchange (BSE/NSE) in India through their account held with a designated bank branch.

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