Monday, 4 April 2016

Depository Services in India for Non-Resident Indians

Making investments in the financial market in India can be very profitable. It has assisted many individuals to generate extra income for themselves and get a better quality of life. Many non-resident Indians or NRIs have understood the advantages of making investments in the financial market of their home country. They have woken up to the profitability of making investments in the markets in India. Due to this reason, NRIs are seeking depository services in India these days. If you are an NRI, you have to keep the following things in mind before availing such kinds of services.

Rules and regulations

In India, depository services come with a specific set of rules and guidelines. Anyone who wishes to invest any money in the Indian market has to abide by some rules and guidelines. There are some specific rules set for non-resident Indians and they have to satisfy these rules and norms prior to making any financial transactions. Any non-resident Indian who wishes to sell of a specific share has to also buy some other thing on the same day, and not delay the procedure. An NRI cannot buy a share and then transfer or gift it to another resident or non-resident Indian through any financial companies in India without getting permission beforehand from the Reserve Bank of India (RBI).

You need a PINS account

If you want to get advantages from the depository services meant for NRIs, you have to set up a PINS account. It is a permission that is mandatory for non resident Indians in order to execute transactions and trading activities in the stock markets in India. Just one bank has the authority to manage all the transactions carried out under the PINS account. According to RBI-stated guidelines and rules, NRIs need to maintain a separate PINS account. They cannot execute any personal transactions through this type of account.

You have to submit all the essential documents

In case you want to begin availing depository services in the country as a non-resident Indian, you have to furnish some important documents, which include your passport, overseas address proof, OCI/PIO cards, PAN cards as well as a power of attorney in your broker name. The broker will be the one you have assigned to manage the buying and selling of your bank shares. The RBI is strict about the papers submitted for non-resident Indian PINS accounts and the financial transactions.


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