loader2
Partner With Us NRI

What are the benefits for NRI in India?

What are the benefits for NRI in India?

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 Ltd.( I-Sec). Registered office- ICICI Venture House, Appasaheb Marathe Marg, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code:-07730) and BSE Ltd (Member Code :103) and having SEBI registration no. INZ000183631. Investment in securities market 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. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The non-broking products / services like Mutual Funds, Insurance, FD/ Bonds, loans, PMS, Tax, Elocker, NPS, IPO, Research, Financial Learning etc. 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.