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NRI FAQS

Who qualifies as a Non-Resident Indian (NRI)?
Who is a person of Indian origin?
How can NRI Invest in Indian Secondary Markets?
How can NRI Invest in Indian Secondary Markets through us?
Why do NRI investor need 2 NRE and 2 NRO accounts?
If NRI Investor wants to trade only on repatriable basis why should he need NRO A/Cs?
What if NRI Investor already holding PIS a/c?
Why does NRI Investor need two PIS- DP (D – Mat) a/c?
Where would NRI investor open these accounts?
What are the documents required for Bank, DP (Demat) and Trading a/c s respectively?
How would the transactions and transfer of shares and funds take place?
How Would NRI Investor operate the account?
How much can NRI Investor invest in a company share?
How does NRI Investor get corporate benefits ?
What is the status of NRI Investors for trading derivatives segment?
Are there any other requirements for NRI Investors for derivatives segment?
Are there any ceiling for NRI Investors in derivatives segment?

1. Who qualifies as a Non-Resident Indian (NRI)?

Taking up employment
Business or vocation
Any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period
Indian citizens working abroad on assignments with foreign Governments/Government agencies or international/regional agencies like the UNO, IMF, World Bank etc.
Officials of Central and State governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to a Branch/Office (including diplomatic missions) abroad
Indians settled abroad permanently
Indians gone abroad on immigration
Crew members of Indian nationality or Indian origin employed by foreign airlines/shipping companies, if they are based at foreign ports and reside abroad

2. You are deemed to be a person of Indian origin if you are a foreign citizen (other than of Pakistan or Bangladesh ), and if:

You have at any time held an Indian passport or
You or either of your parents or any of your grandparents was citizens of India by virtue of the Constitution of India or the Citizenship Act, 1955.
You are the spouse of an Indian citizen or of a person of Indian origin (other than of Pakistan or Bangladesh ).

3. How can NRI Invest in Indian Secondary Markets?
A Non-resident Indian (NRI) may purchase/sell shares and/or convertible debentures of an Indian company, through a registered broker on a recognised stock exchange underPortfolio Investment Scheme (PIS)
The NRI designates a branch of an authorised dealer for routing his/its transactions relating to purchase and sale of shares/ convertible debentures under this Scheme, and routes all such transactions only through the branch so designated.

You have at any time held an Indian passport or
Exclusive NRE savings bank a/c, in Indian Rupees and NRE Demat account to be opened for PIS on repatriable basis.
Exclusive NRO savings bank a/c, in Indian Rupees and NRO Demat account to be opened for PIS on non-repatriable basis
NRE / NRO account opened as above should be utilized only for PIS transactions.
Existing shares can be transferred from another AD, along with a No Objection Certificate from the transferring AD and a certificate confirming the status of the scrip’s (whether purchased under repatriation or non-repatriation basis)
The NRI investor takes delivery of the shares purchased and gives delivery of shares sold;
Payment for purchase of shares and/or debentures is made by inward remittance in foreign exchange through normal banking channels or out of funds held in NRE/FCNR account maintained in India if the shares are purchased on repatriation basis and by inward remittance or out of funds held in NRE/FCNR/NRO account of the NRI concerned maintained in India where the shares/debentures are purchased on non-repatriation basis
The net sale/maturity proceeds (after payment of taxes) of shares and/or debentures of an Indian company purchased by NRI, at the NRI investor’s option, to be credited to his/its NRO account, where the shares and/or debentures were purchased on non-repatriation basis or at the NRI investor’s option, to be remitted abroad or credited to his/its NRE/ FCNR account, where shares and/or debentures were purchased on repatriation basis

4. How can NRI Invest in Indian Secondary Markets through us?
Please click here to view the process

5.Why do NRI investor need 2 NRE and 2 NRO accounts?
PIS – NRE and NRO a/c is will only be used for the transaction done in secondary market and should not be used for any general purpose.

6.If NRI Investor wants to trade only on repatriable basis why should he need NRO A/Cs?
It serves two purposes:

Dividends cannot be repatriated; therefore it will be directed to NRO savings account, however if the original shares were purchased on repatriable basis the dividends
NRI Investors Indian wealth can be directed to secondary market through PIS-NRO a/c.

7.What if NRI Investor already holding PIS a/c?
The NRI Investor needs to transfer this account to the bank with which we have tie-up.

No Objection certificate from their present Banker where NRI Investor has presently holding their PIS a/c.
Their present Bankers will also issue the list of shares which the customer is holding in their PIS a/c as of date
As the customer can only open one PIS a/c with only one Bank NRI Investor is required to close the said account with their previous Bank immediately

8 .Why does NRI Investor need two PIS- DP (D – Mat) a/c?

One a/c will take care of all the holdings with repatriable basis whereas the other for all non repatriable.
In case of right issue the purchase of right may be funded by NRI Indian wealth (non – repatriable) then these shares will be directed to PIS DP (Demat) non-repatriable account.

9.Where would NRI investor open these accounts?

Trading and DP (Demat) account will be opened with Networth Stock Broking Ltd.
The Bank a/c s will be opened with the bank with which Networth Stock Broking Ltd is tied up.

10. What are the documents required for Bank, DP (Demat) and Trading a/c s respectively?
For details on documentation, you can contact any of our offices or write to us at nri@nsbl.co.in

11. How would the transactions and transfer of shares and funds take place?
Please click here to view the char

12. How Would NRI Investor operate the account?
NRI Investor can operate the account in following ways:

NRI Investor will give POA/GPA/Letter of Authority to Networth Stock Broking Ltd to operate his/her DP (Demat) accounts and Bank accounts and he/she will operate the trading account via email, chat or tele call.
NRI Investor will give POA/GPA/Letter of Authority to Networth Stock Broking Ltd to operate his/her DP (Demat) account whereas he can operate his Bank account via internet facility provided by the bank and he/she will operate the trading account via email, chat or tele call.
NRI Investor will give POA/GPA/Letter of Authority to his resident relative to operate his/her Trading, DP and Bank accounts.

13. How much can NRI Investor invest in a company share?
NRI investor both on repatriation and on non-repatriation basis cannot exceed 5 percent of the paid-up value of shares issued by the company concerned and aggregate paid-up value of shares of any company purchased by all NRIs cannot exceed 10 percent of the paid up capital of the company.

14. How does NRI Investor get corporate benefits ?
Dividends : Dividends are given on a non – repatriable basis
Right issue: The issuer has to take RBI’s approvals for repatriable basis. The bonus can be repatriable basis only if the original shares were on the same basis.
Bonus: The issuer has to take RBI’s approvals for repatriable basis. The right shares can be repatriable basis only if the original shares were on the same basis and the NRI Investor has funded these rights shares from repatriable account.

15. What is the status of NRI Investors for trading derivatives segment?
NRI Investor is allowed to trade in Indian Derivatives Market only on non repatriable basis.

16. Are there any other requirements for NRI Investors for derivatives segment?
Yes, NRI Investors for derivatives segment will have to appoint a Clearing Member for clearing and settlement of trades done on the futures and options segment and get Custodian Participant Code from that clearing member.

17.Are there any ceiling for NRI Investors in derivatives segment?
Yes, the position limits for NRIs shall be the same as the client level position limits specified by SEBI. Therefore, the NRI position limits shall be –

For Index based contracts, a disclosure requirement for any person or persons acting in concert who together own 15% or more of the open interest of all derivative contracts on a particular underlying index.
For stock option and single stock futures contracts, the gross open position across all derivative contracts on a particular underlying stock of a NRI shall not exceed the higher of:
1% of the free float market capitalisation (in terms of number of shares). or
5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number of contracts).

This position limits would be applicable on the combined position in all derivative contracts on an underlying stock at an exchange.
For Further Details Click Here

NSE CM and Derivatives Segment SEBI Regn. INB230638639 & INF230638639 , NSE Currency Derivatives Segment SEBI Regn. INE230638639 , BSE CM and Derivatives Segment SEBI Regn. INB010638634 & INF010638634 , BSE Currency Derivatives Segment SEBI Regn. INE010638634 , MCX-SX Currency Derivatives Segment SEBI Regn. INE260638639 , PMS SEBI Regn. INP000001371 , CDSL DP SEBI Regn. IN-DP-CDSL-251-2004 , NSDL DP SEBI Regn. IN-DP-NSDL-272-2007 , Commodities Trading* - MCX Commodities segment FMC Regn. MCX/TCM/CORP/0741 & MCX Code No.10585 , NCDEX Commodities segment FMC Regn. NCDEX/TCM/CORP/0501 & NCDEX CMID: 00011 (* through Networth Commodities & Investments Limited.) , Merchant Banker Regn. INM000011013