How NRIs do Online Non Resident Indian (NRI) Trading – Equity:
Posted by NriFinanceGuide on June 10, 2008
Most of the reputable and registered brokers in India offer Online Trading facility in Equities for NRIs.Such Online NRI Trading Account opening involves the following:
1) Opening of Bank A/c with a PIS Designated Bank (DB).
PIS account (Mandatory for Indians living abroad): Portfolio Investment Scheme (PIS) allows NRIs to invest in shares of Indian companies, in secondary market, under repatriation or non-repatriation basis in respect of shares or convertible debentures sold or purchased through a registered stock broker on a recognized stock exchange. Any other modes of acquiring shares are not covered under this scheme ie, shares purchased through IPOs, as resident individuals, bonus shares etc.
Demat Account stands for a dematerialized account. The way one has to open a bank account if you want to park or save money; the very same way you need to open an online Demat Account for NRIs if you want to buy or sell stocks, and later save your stocks there in the Dmat Account. This Dmat happens to be maintained with a depository and is opened through a DP – Depositary Participant. At NriInvestIndia.com we specifically help NRIs, PIOs & OCIs to open a Online Dmat account in India.
What is a Broking/Trading Account?
Trading account is nothing but an account opened with a stock brokers, that would enable you to buy and sell shares or any other financial instruments through them.
NRI Mutual fund investment in India can be done in 2 different ways.
Categorically speaking:
1. Investments via using Power of Attorney.
2. Investments without power of attorney.
In general NRIs can invest into all major mutual funds like: Kotak Mutual Fund Franklin Templeton India Mutual Fund Birla Sunlife Mutual Fund Prudential ICICI Mutual Fund HDFC Mutual Fund TATA Mutual Fund Sundaram Mutual Fund Cholamandalam Mutual Fund Standard Chartered Mutual Fund DSP Mutual Fund Principal Mutual Fund SBI Mutual Fund Reliance Mutual Fund Deutsche Mutual Fund ABN AMRO Mutual Fund J M Financial Mutual Fund ING Vysya Optimix HSBC Mutual fund Fidelity AMC.
