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NRI Share Trading in Indian Stock Market
Posted by ni2financial on July 31, 2008
The Indian Stock Market is as dynamic as any other market – the difference perhaps being that the Indian market is also accredited as being the emerging economic superpower. This perhaps is the reason why many Non-resident Indians (NRI) including Persons of Indian Origin (PIO) and Overseas Citizen of India (OCI) are investing in the Indian Share Market.
Many non-residents today look towards the Indian Market for investing their money. There are many brokerage houses that help non-residents in doing so. Timesofmoney.com, nriinvestindia.com, nricapital.com etc. are just some of the better brokerage houses. These brokerage houses will carry out all the paper work on your behalf with the broker acting as your representative in India.
Investments in India can be done in a number of sectors. The first among them is the real estate sector that has emerged as the hot spot for potent investors. This is perhaps because this sector is fast growing and non-residents have the option of buying, selling and/or even renting out their property.
Next to real estate, the investors have the option of investing in Bank deposits, better known as Fixed Deposits. They can open FCNR or NRE/NRO Account for the same.
In addition, many investors, today, prefer investing in Mutual Funds, as they can diversify their interests and Mutual Funds have the least amount of susceptibility. Investments in Mutual Funds can be done on a ‘repatriable’ as well as ‘non-repatriable’ basis. You can invest as per your convenience.
Investment is also allowed in PSU Bonds and/or proprietary or partnership concern in India. Non-residents may also invest in air taxi operation and Commercial Paper issued by Indian Companies.
Also, thanks to technology, investors can now trade shares online! But before you start with your investment spree, please note that you need to have three kinds of accounts so as to make investment permissible. The first is a bank account with a Portfolio Investment Scheme (PIS) with a Designated Bank (DB). Then you need to have DMAT Account followed by a Broking/Trading Account with a broker. You need not handle all the paperwork involved. You can give a power of attorney to your broker stating him to be your representative, and voila! All your work would be done in a jiffy.
In fact, you don’t even have to come over to get your Permanent Account Number (PAN). Your broker, on your behalf, as your agent, will do that for you. PAN is required, according to Government of India rule, for any financial transaction. A typical PAN would look like ABCDE1234F. For further details on how to get a PAN Card without coming over, please contact PAN Card Assistance Brokers at:
Thus, thanks to the boom in technology and Indian economy emerging as an economy to reckon with, non-residents are increasingly looking towards this eastern share market to invest their hard-earned money.
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