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Vytwo
Mudiripoyina Bewarse
Username: Vytwo
Post Number: 6232
Registered: 01-2005
Posted From: 69.142.187.154
Rating:N/A
Votes: 0(Vote!) | | Posted on Sunday, November 18, 2007 - 11:20 am: | 
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Anon-resident Indian (NRI) means a 'person resident outside India' who is a citizen of India or is a 'person of Indian origin'. Under the Foreign Exchange Management Act (FEMA), a person who is not a 'person resident in India' is considered as a 'person resident outside India'. A 'person of Indian origin' (PIO) means a citizen of any country other than Bangladesh or Pakistan, who held an Indian passport, or whose parents or any of his grandparents was a citizen of India, or someone who is a spouse of an Indian citizen.
An investment by a PIO in Indian securities is treated the same way as an investment by a NRI, requires the same approvals, and enjoys the same exemptions. NRIs and PIOs can open a demat account with any depository participant (DP). The NRI or PIO needs to mention the type and the sub-type (repatriable or nonrepatriable) in the account opening form collected from the DP. No permission is required from the Reserve Bank of India (RBI) to open a demat account. However, credits and debits from the demat account may require general or specific permissions as the case may be, from designated banks. Further, no special permission is required by a NRI for dematerialiation or rematerialisation of securities.
Holding securities in demat form only constitutes change in form and does not need any special permissions. However, only those physical securities which already have the status of NR - repatriable and NR -non-repatriable can be dematerialised in the corresponding depository accounts. The securities purchased under repatriable and nonrepatriable categories cannot be held in a single demat account.
A NRI must open separate demat accounts for holding repatriable and nonrepatriable securities. An investor can continue to hold the securities which he had purchased as a resident Indian, even after he has become a non-resident Indian, on a non-repatriable basis. In case a non-resident Indian becomes a resident in India, he is required to change the status of his holding from non-resident to resident. It is the responsibility of the NRI to inform the change of status to the designated bank branch, through which he had made the investments in the portfolio investment scheme and the DP with whom he has opened the demat account.
Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account, and then the NRI demat account should be closed. NRIs are also permitted to make direct investments in shares and debentures of Indian companies, and units of mutual funds.
They are also permitted to make portfolio investments, i.e., purchase of shares or debentures of Indian companies through the stock exchanges. These facilities are granted both on repatriation and non-repatriation basis. Further, NRIs can purchase securities by subscribing to a public issue. The issuing company is required to issue shares to the NRI on the basis of specific or general permissions from the RBI.
Therefore, individual NRIs need not obtain any permission. NRIs do not require any permission to receive bonus or rights shares. NRIs can purchase existing shares or debentures of Indian companies by private arrangement. The RBI permits NRIs to purchase shares or debentures of existing Indian companies on a non-repatriation basis. An undertaking about nonrepatriation is to be given. They can also obtain loans abroad against the collateral of shares or debentures of Indian companies.
The authorised dealers have been permitted to grant loans or overdrafts abroad to NRIs through their overseas branches and correspondents against collateral of the shares or debentures of Indian companies held by the NRI, provided the shares or debentures concerned were acquired on repatriation basis. The bank details recorded by the DP may be used by the issuer of securities to directly credit the dividend or interest. These bank accounts may be given - for non-repatriable -NRO (dividend and interest is repatriable), and for repatriable -NRE. The purchase and sale of shares by a NRI requires permission from designated banks.
Therefore, a DP may ask for a copy of the permission from a designated bank before executing debit (sale) transaction. They may not enable standing instructions for automatic credit unless a copy of the permission from the designated bank for sale or purchase is given. As this permission is not given for each transaction, a copy of the permission may be given only at the time permission is granted.
chirutha becomes cat . |
Esperanza
Yavvanam Kaatesina Bewarse
Username: Esperanza
Post Number: 3695
Registered: 08-2004
Posted From: 91.152.66.158
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 4:34 pm: |
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vemana chala story unde veeti enakala. thanx for clarifying mama.
TELUGU FILM INDUSTRY BOXOFFICE KI CHIRUNAMA MAA OKKA MAGADU.. THE ONLY ONE |
Gaali
Celebrity Bewarse
Username: Gaali
Post Number: 12588
Registered: 03-2004
Posted From: 15.243.169.73
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 4:02 pm: |
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Thanks a lot mama. Time teesukoni chaalaa detailed gaa explain chesaavu. 
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Vemana
Kurra Bewarse
Username: Vemana
Post Number: 1799
Registered: 12-2004
Posted From: 144.42.9.186
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 3:37 pm: |
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Legally those (US Residents) who operate NRE accounts and earn returns are supposed to show up income in our IRS tax filing.
So far I have never mentioned my income from NRE/forigen investments, even though I earn interest and dividend in my annual IRS tax filings. |
Vemana
Kurra Bewarse
Username: Vemana
Post Number: 1797
Registered: 12-2004
Posted From: 144.42.9.186
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 3:31 pm: |
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NRE: No tax deduction at source for interest, divididend and . Deposits into this account only through forign currency and return on investments like interest on deposits, dividends and sale of property. No INR cash deposits. Total Tax rate: 0
NRO: Tax deduction at source (TDS) for interest, dividend and sale of property/capital.
Deposits include: Foriegn currency transfers, interest, dividend and sale returns. INR deposits possible under special rule stating income from sale. Sometimes bank managers deny.
Total tax rate: depends on the kind of returns you are getting. Max: 30% on total income. |
Vemana
Kurra Bewarse
Username: Vemana
Post Number: 1796
Registered: 12-2004
Posted From: 144.42.9.186
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 3:24 pm: |
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It is not possible mama. all the applicants must be NRIs. you can add your spouse/childern, but not parents living in India.
You can get PAN irrespective of your status like NRI/RI.
One trade off if you decide to operate totally on your father's name using your fathers PAN is and your father's Resident Savings account, Dividend and Capital gains tax are charged at souce (TDS) on your father's name. Whenever you want to takeoff huge sum by selling some stock, you end up paying capital gains tax at 30% flat at source. Getting that money back is tedious process with IT dept even though we are entititled to get returns.
Also you can not utilize the no-tax benifit (for interest, dividend and sale of shares/property)for NRIs if you use ur father Identity.
The options you have now are: Use PIS scheme, it is difficult process for setting up.. but your vision was long term.. it is worth taking the risk to setup one. With this you can take 100% returns repritable and no tax on dividend, interest and sale of capital. |
Gaali
Celebrity Bewarse
Username: Gaali
Post Number: 12586
Registered: 03-2004
Posted From: 15.243.169.73
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 3:11 pm: |
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Vemana mama,
Can I get a PAN number, open a NRO account (joint with my father) and then allow him to open a brokerage account in India on my name and then let him operate it? Do you know if that is legal for NRIs living in USA?
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Vemana
Kurra Bewarse
Username: Vemana
Post Number: 1795
Registered: 12-2004
Posted From: 144.42.9.186
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 3:11 pm: |
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Avoid ICICI for god sake. IT is the most fcxuked up bank and most horrible to deal whenever you screw up something with Demat/investments. I am dealing with these fcuking basterds since two years as I have Demat account. I still have it since I opened before these rules came in. I am having hard time to deal with with new rules. I am virtually locked up with my investments in that bank's demat account. Personally I never suggest this bank to anyone in Shares/trading.
Personal banking is somewhat better as the chances of error are less and its impact also less. But in shares it is different, if they can not honor any tranasaction during that trading window or mess up with sale/purchase transaction it is painful process to resolve it and it is not worth the time we need invest in resolving it. |
Vemana
Kurra Bewarse
Username: Vemana
Post Number: 1794
Registered: 12-2004
Posted From: 144.42.9.186
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 3:02 pm: |
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gaali mama. you are correct. USA residents ki direct/active trading or not even options lo invest cheyyadaaniki kuda leda individual ga. Whole world countries except USA are eligible for NRI Demat with active trading facility. Due to IRS stubbornness towards Indian taxation policy, it did not sign any pact to share tax revenue. So CBDT/Finance ministry took this decision.
/*FOR THOSE WHO ARE CONFUSED WITH PAN and MIS-USE PAN AS SOMETHING RELATED TRADING/SHARES:*/
PAN card has nothing to do with investment. This PAN Number is a Tax ID and it is must for operating/opening any Demat/trading account or to buy any stock. Soon govt will make it mandatory for banking accounts also to have PAN.
Coming to esper's answer, he lives in EU and he is eligible.
Where as for US residents can invest in a different group called: Portfolio Investment scheme as foriegn national under repreateble clause which is offered by Banks with agreements with brokerage firms.
This is two fold process:
You open a PIS Account with one of the Indian stock trading brokerage firm. Like Motilal Oswal, Reliance Money or some dalal street broker with International presence accepting FDI and FII notes.
You also open a PIS NRE Savings account to fund yuor trades and commisions for brokerage firm and the participant bank. This PIS scheme is attached with Banks like HDFC, ICICI and SBI. You need to pay commision to both the inistitutions for trading.
Once you open 1. PIS Trading account and 2. NRE PIS Savings account with enough funds, you use the brokerage firm trading account to analyze the trends and history in the portal with insider analysis.
Once you identify certain scripts and the quantity you want to buy, you raise a request to the broker in your account. Make sure you have enough funds.
Broker will purchase or bid for X number of shares you requested
The balances are debited and you receive confirmation by end of the trading day.
In the same manner if you decide to sell your stock, you raise a request and the broker will do the same for you.
This is one way to trade and sell shares in the market as a portfolio investment folio owner. This is a backdoor approach people used until recently other than FII.
RBI raised new guidelines to fix loops in this area also. I did not get a chance to review the new rules and regulations and its impact on PIS investments.
I am in the process of applying for PIS membership. I will update once I am successful with it. |
Gaali
Celebrity Bewarse
Username: Gaali
Post Number: 12585
Registered: 03-2004
Posted From: 15.243.169.69
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 1:21 pm: |
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Thank you very much Baggie mama. I will call him.
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Esperanza
Yavvanam Kaatesina Bewarse
Username: Esperanza
Post Number: 3690
Registered: 08-2004
Posted From: 91.152.66.158
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 12:47 pm: |
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hez @ Begumpet Branch mama.memu personal ga kalsamu. his name is Dhanunjay. his phone no +919885582941. he was very helpful explaining all the details regarding stocks, mutual funds, fixed deposits etc.
call chesi matladu mama. anni clear ga cheptadu.
TELUGU FILM INDUSTRY BOXOFFICE KI CHIRUNAMA MAA OKKA MAGADU.. THE ONLY ONE |
Gaali
Celebrity Bewarse
Username: Gaali
Post Number: 12583
Registered: 03-2004
Posted From: 15.243.169.69
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 12:31 pm: |
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Baggie mama,
Thanks mama. PAN card ki maaa father apply chesthunnaru naa taraphuna. He has GPA from me. ICICI vaadi contact details ivvu mama. I'll call him up.
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Esperanza
Yavvanam Kaatesina Bewarse
Username: Esperanza
Post Number: 3684
Registered: 08-2004
Posted From: 130.233.204.159
Rating:N/A
Votes: 0(Vote!) | | Posted on Monday, November 12, 2007 - 10:04 am: |
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Gaali mama, nenu monna kanukkonte icici vadu PAN card ki apply cheyandi sir, adi unte meeru ikakda stocks lo invest cheyochu ani cheppadu. if u want i can give his tel no and you can talk to him directly neeku atani no kavalante mail chesta.
TELUGU FILM INDUSTRY BOXOFFICE KI CHIRUNAMA MAA OKKA MAGADU.. THE ONLY ONE |
Prasanth
Bewarse Legend
Username: Prasanth
Post Number: 27542
Registered: 03-2004
Posted From: 203.200.218.2
Rating:N/A
Votes: 0(Vote!) | | Posted on Friday, November 09, 2007 - 2:06 am: |
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I have pan card...
em peTTaali ikkaDa? |
Risk
Yavvanam Kaatesina Bewarse
Username: Risk
Post Number: 4160
Registered: 05-2007
Posted From: 77.0.247.80
Rating:N/A
Votes: 0(Vote!) | | Posted on Friday, November 09, 2007 - 1:55 am: |
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Beer
Yavvanam Kaatesina Bewarse
Username: Beer
Post Number: 3322
Registered: 09-2006
Posted From: 208.204.155.241
Rating:N/A
Votes: 0(Vote!) | | Posted on Thursday, November 08, 2007 - 3:31 pm: |
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avunu. pan card vunte ikkada nundi trade cheyyavachhu.
Evaro Okaru epudo kapudu nadavara munduga ato ito eto vipu |
Nks
Pilla Bewarse
Username: Nks
Post Number: 126
Registered: 08-2004
Posted From: 38.101.49.150
Rating:N/A
Votes: 0(Vote!) | | Posted on Thursday, November 08, 2007 - 3:20 pm: |
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ya mama USA NRIs antha alane chestharu. or PAN card ku apply chesi kuda kontha mandhi chestharu ani vinna. |
Gaali
Celebrity Bewarse
Username: Gaali
Post Number: 12570
Registered: 03-2004
Posted From: 15.243.169.69
Rating:N/A
Votes: 0(Vote!) | | Posted on Thursday, November 08, 2007 - 3:19 pm: |
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 Anthenaa mama?
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Nks
Pilla Bewarse
Username: Nks
Post Number: 124
Registered: 08-2004
Posted From: 38.101.49.150
Rating:N/A
Votes: 0(Vote!) | | Posted on Thursday, November 08, 2007 - 3:18 pm: |
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most of the NRI guys invest through parents account. |
Gaali
Celebrity Bewarse
Username: Gaali
Post Number: 12569
Registered: 03-2004
Posted From: 15.243.169.69
Rating:N/A
Votes: 0(Vote!) | | Posted on Thursday, November 08, 2007 - 3:16 pm: |
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Ninna ICICI bank vaallatho matlaadanu if I could trade in Indian mkts or atleast invest in Mutual Funds from here. Kudaradu ani chepparu.
USA govt laws don't allow that antaa. UK nundi ayithe ok antaa.
Does anybody else have a clue about this?
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