Are you a Non-Resident Indian (NRI) and want to Invest in Indian stocks markets, then this article is just for you?
Do you know Indian government is offering several investment facilities to NRIs, PIOs and OCBs to invest in India.
Steps for NRI to start investing in the Indian stock Market.
1. Open a Bank Account. If you already have bank account, you should check with your bank to find out whether those are suitable for stock trading. NRE and NRO accounts generally permitted to be maintained for Portfolio Investment Scheme
2. Open a Demat Account through online trading websites. The major Indian Online trading websites are listed here. All buying and selling of shares must be done through this demat account.
ICICIdirect has services for all the above.
- Checkout the list of Investment Options available for NRI’s in India
Tips for NRI Investment
– NRI can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital)
– NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund.
– NRIs do not require any permission to invest though Initial Public Offerings (IPOs) or Private placements.
– NRI’s no need to file tax returns, unless the taxable Indian income of over Rs 1.10 lakh.
Happy investing in India (The Fastest growing economy in the world)
Every website talks about PIS and NRI investing in Stock, but when it comes to NRIs from US/Canada, there is a discrimination. No website talks of why US NRI investors (Indian citizens) cannot enjoy the financial success directly, while FIIs are welcomed by the Indian govt. (max $$ flow from this country).
Could you explain, by what year/ timeline, can we expect to enjoy what NRIs in UAE and other asian countries are allowed nowadays? For NRE accounts, Citibank already issues 1099 for US tax filing purposes. Why not issue 1098 etc gains/ losses in Indian stocks?
I think the issue the RBI has no problems – the stock brokers will have to elect to get themselves SEC compliant if they offer US residents the facility of executing order from the US.
As far as Canada is concerned – well think of it like the freezer compartment if the US if the fridge.