Why NRIs Should Consider Investing in India – Benefits & Insights

03 Jan 2023|

1 min read |

by ICICI Securities Team

Why would NRIs want to open demat accounts in India? There are many reasons for this. One is that many NRIs may want to return India eventually. They will want to invest in stocks, so that they will have a nice nest egg for their retirement, or use it for other goals like their children’s wedding, higher education or to build a home in India. Another reason is that the Indian stock markets offer much higher returns than in developed countries, so it makes sense to invest here.

What NRIs need to buy and sell stocks?

If you are an NRI, there are several things to consider while investing in stocks. Let’s take a look at them:

Bank account:

The first thing to do is open a bank account. There are two kinds of bank accounts available for NRIs. One is the non-resident external (NRE) account and another is the non-resident ordinary (NRO) account. If you want to repatriate funds, an NRE account allows you to do so. If you have an NRO account, you can repatriate up to USD 1 million in a year for any bonafide purpose subject to satisfying documentation requirements

Demat account:

You’ll also need a demat account which you can open at the same branch. If you have a demat account that you opened as a resident, you will have to close it and transfer the shares to an NRO/ NRE account. Though direct repatriation of sales proceeds of shares acquired from income earned in India is not permitted, as an NRI, you can repatriate up to $1 million per financial year out of the balances held in the non-resident ordinary (NRO) accounts after you have paid due taxes.

Portfolio Investment Scheme:

NRIs are allowed to trade only through the Portfolio Investment Scheme (PINS) in secondary market, which is available only at designated branches. All your sales and purchases of shares have to be done through this account only. Note that you cannot speculate in shares, and have to take delivery. NRIs can also open a Non-PINS account which is essentially required for all IPOs and MF investments and also to sell shares, which were acquired as resident Indian.

Three-in-one account:

The best option for NRIs would be a three-in-one account that combines banking, trading and demat services.

Documents needed for NRE/NRO/ PINS

Here are the documents you need to open NRE/NRO/ PINS account:

Valid Indian passport

Visa (work, employment, student, resident permit etc)

PINS permission letter from the designated bank

PAN card

Proof of overseas address like driving licence, utility bills, bank statement

Photograph of investor

So it doesn’t matter in whichever part of the world you are working or living in, you can still buy Indian shares and take advantage of the country’s growth story.

Disclaimer

ICICI Securities Limited has its registered office at ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. The non-broking products / services like iLearn and Financial Learning are not exchange traded products / services and ICICI Securities Ltd. is just acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. iLearn is not an exchange traded product/service of ICICI Securities Ltd. All disputes with respect to the activity on the platform would not have access to Exchange investor redressal or Arbitration mechanism.

ICICI Securities Ltd. is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. ICICI Securities Ltd. is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. Name of the Compliance officer (broking): Mr. Atul Agrawal, Contact number: 022-69997051, E-mail address: complianceofficer@icicisecurities.com Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. ICICI Securities Ltd. and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Such representations are not indicative of future results. The securities quoted are exemplary and are not recommendatory. AMFI Regn. No.: ARN-0845. PFRDA registration numbers: POP no -05092018. ICICI Securities Ltd. acts as a Composite Corporate agent having registration number -CA0113. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, Alternate investment funds, Tax planning, Succession planning, NPS, IPO, Investment Advisory and Loans related services are not Exchange traded products and ICICI Securities Ltd. is acting as a distributor to solicit these products. Please note, Insurance related services are not Exchange traded products and ICICI Securities Ltd. is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The non-broking products / services like Research, etc. are not exchange traded products / services and all disputes with respect to such activities would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

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