NON-RESIDENCE INDIAN SERVICES
Products and services for customers living overseas or returning to India after being abroad
NRIs can now invest in investment vehicles by saving into:
There are certainly attractive avenues in India where NRIs obtain the freedom of investing in a diversified investment portfolio and significantly build up their investment portfolio. India is emerging as one of the fastest-growing investment destinations for NRIs. India is now the 5th largest economy in the world and is projected to be the 3rd largest after China and USA
Mutual Funds
Mutual funds are known for their simple ways of investing in increasingly complex financial markets. Mutual funds are so popular because of flexibility, affordability, diversification, liquidity, low costs, and regulated investor protection facilities.
Bank Fixed Deposits:
Fixed deposit facility (FD) the safest investment options in India as it is meant to generate stable income for an ideal investment period between 6-12 months. These facilities come in the form of FCNR, NRO and NRE deposits.
Real Estate:
Reserve Bank has granted general permissions to financial institutions to provide housing finance loans to NRs.
Shares:
NRIs are allowed to invest in both shares and stock. Either by directly subscribing to shares and debentures on a repatriable or non-repatriable basis and through a portfolio investment scheme.
Rules for NRIs to Invest:
- A person who resides outside India or has taken up employment outside India;
- Conducting business activities outside India
- Staying outside India for an indefinite or uncertain time period
- A person has been in possession of his Indian passport (provided he is not a citizen of Pakistan or Bangladesh)
- Either of his parents or grandparents were Indian citizen (as per the Indian Constitution/ Citizenship Act of 1955).
Dos
- NRI needs to open NRI/NRE (Non Resident External Rupee) account with RBI entitled Indian bank as the money will be deposited in those accounts.
- An individual can open only one PIS Account for stock transaction and needs to invest in local currency.
- One needs to open a Demat account and a trading account with a brokerage firm authorized under SEBI or a SEBI registered mutual fund advisor.
- A stock bought can only be sold after two days. An NRI can nominate a power of attorney who can do the transaction in India on their behalf.
Don'ts
- Total investment cannot cross 10% of paid-up capital in Indian company.
- An NRI cannot do any trading in India without a stock broker.
- NRIs cannot transact on non-delivery basis in India.
- An NRI should not appoint a broker without assessing their reputation and balance sheet and check through BSE, SEBI or NSE whether he has defaulted earlier.