How to Trade in Indian Stock Market with Portfolio Investment Scheme

A portfolio investment scheme (PIS) lets non-residential Indians (NRIs) to trade or invest in the Indian stock exchange. Once you register yourself for this scheme, it becomes easy to make NRI investments in the Indian market. There are several Reserve Bank of India (RBI) approved banks like HDFC, Axis, ICICI, SBI and more that offer this scheme to its NRI account holders. NRI customers can carry out transactions through various branches of these banks from any part of the world. Here is how you can go about trading in the Indian stock market by enrolling into a portfolio investment scheme.

- Firstly, you will need to fill out a form for your NRI account. This form must be filled thoroughly and signed by all the account holders. It must include all the details regarding purchases of shares via the primary stock market.
- The NRI account holder will also have to fill the PIS application form in order to enroll into this scheme.
- The NRI investor should also produce the tariff sheet for the bank to review.
- A Demat holding statement also must be filled and submitted at the designated branch.

These are the mandatory documents that are required for applying for PIS. This is the first step for NRI investors to be able to trade in the Indian stock market. So, what is the best way for NRIs to invest in the Indian market? Let’s find out:

- It is a great idea to invest in India-specific funds introduced by US mutual funds. Or you could go for Indian mutual fund organizations that let NRIs to invest in their schemes. 
- All the investments made by NRIs should be in Indian currency, which is rupee. Indian mutual funds are obligated to trade only in the local currency. This is why the foreign investor must open an NRI accounts like the non-resident ordinary rupee (NRO), the non-resident external rupee, and the foreign currency non-resident (FCNR).
- The amount you want to invest in Indian markets must be debited from one of the NRI accounts or from an inward remittance via general banking channels. An NRI can also send a demand draft or cheque with the help of the exchange house abroad and draw it to its corresponding Indian bank.
- Only after proper authentication and id verification can an NRI investor start trading in India. Therefore, one must make sure that all his/her documents are in place and ready for approval.

Advantages of Holding a FCNR Deposit Account

What does FCNR deposits stand for? It is Foreign Currency Non-Repatriable deposits, which is a fixed deposit account for foreign currency. This is a unique type of account provided by Indian banks and you can deposit all the major currencies including US Dollar, Canadian Dollar, UK Pound, Japanese Yen, Deutsche Mark and Euro can be deposited to this account. You can securely save and grow these foreign currencies in your account while protecting them against currency fluctuations. Here are the benefits of holding this account.

- Interest Rate: The account earns interests based on the rate that the particular bank offers. This rate stays unaffected whatsoever and allows you to reap benefits on all the currencies deposited in the FCNR deposits account.
- Tax Exemption: You can enjoy a tax exemption on the total amount of your deposits into this account. It is a special kind of account that is absolutely non-taxable. So, you don’t have to be worry about additional charges levied on your deposits.
- Joint Accounts: One can open an individual or joint account with other NRIs. You can also repatriate the principal and interest amount at any point of time. You can also avail a nomination option where you can nominate someone you trust to be a beneficiary of your account on your behalf.

Depositing & Transferring Money to Your Account

- You can deposit money to your account from abroad by transferring money in a freely-convertible foreign currency.
- You can directly remit the amount to the FCNR bank account in India via telegraphic transfer or wire transfer.
- You can also transfer money from an existing account in India to other Banks as per your need. It is a hassle-free process with no extra charges.
- Whenever you or your joint NRI account holder travels to India from abroad, you must present your currency notes or travellers cheques for any kind of withdrawal process.

So, if you are a non-residential Indian, you are eligible to open an FCNR account. You can open an individual account or a joint account with your NRI partners. One must maintain the account for at least a minimum of one year and a maximum of 5 years to reach maturity. Different banks offer different interest rates that are subjected to change; so compare all of them and choose the one that matches your requirements. Interest rates are put out on a yearly basis. There is ample information available online that can help you make an informed decision of opening an FCNR deposits account.

Everything About an NRI Deposits Account

‘NRI deposits’is a term used for the fixed deposits made by non-residential Indians in any of the banks in India. There are several banks in India that offer a variety of customised fixed deposit accounts to Indians residing overseas. One can choose from a range of different schemes that are offered by different Indian banks. These banks also give you an opportunity to earn great interests on your fixed deposits. Following are the benefits and eligibility criteria of having a NRI fixed deposit account.

- Eligibility:You can open an NRI fixed deposit account either individually or jointly with your family or spouse, who are NRIs. This flexibility is offered by various top banks in India. Also, one can open this account only if he/she is not residing in India but is of Indian origin or nationality.
- Interest Rate:When you open this kind of an account, you earn more interest on NRI deposits as compared to general savings accounts. Therefore, holding this account is beneficial if you are a non-residential Indian.
- Premature Withdrawal:With prior notification, one can withdraw the account at a premature stage. However, if you want to earn interest on your savings, you will have to make sure that your deposits are in the account for a particular period of time in the designated bank.
- Tax Concessions:There are several schemes and policies that apply when it comes to opening an NRI account. Some NRI fixed deposits are non-taxable, like if you open an FD account through an NRE account in India, it is not taxable. However, accounts opened through NRO or FCNR accounts are bound to receive tax concessions.
- Account Renewal:As and when your account matures, it can be auto-renewed as per the option chosen by you while opening the account. You can either choose to renew the account or close it eventually.
- Loan Policies:Several banks offer loan against your fixed deposits. If you are looking to take up a loan, then the NRI deposits can be a great security for it. It is always better to compare different facilities and offers provided by various banks before making the final decision.

These are the advantages of holding an NRI deposits account. If you are an Indian, living in another country, you can still open an FD account or several accounts in India and reap its benefits. You can also take a good look at the customized deposit schemes that can be profitable for you in the future.

How to Carry Out NRI Investment in India

Non-residential Indians can invest in the Indian stock markets under the portfolio investment scheme of the Reserve Bank of India (RBI). An NRI must open a Non Resident Rupee (NRE) account or a Non Resident Ordinary Rupee (NRO) account with an RBI-approved Indian bank. However, there are several things to be kept in mind before going ahead with an NRI investment. Here follows a list of things that will help in NRI investment in the country’s stock market.

- Any type of invest made by an NRI must be in local currency, which is rupee. If you are interesting in investing into mutual funds, you must have three bank accounts – Non-Residential Rupee account, Non-Residential Ordinary Rupee account, and the Foreign Currency Non-Resident Account (FCNR).
- The amount that you want to invest can be directly debited from the NRE or NRO account or received via inward remittances of general banking channels.
- The investor needs to produce a rupee cheque or draft from his NRE or NRO account or send a draft or cheque issued by an exchange house in abroad drawn on its corresponding Indian bank.
- Investments made with cheque or draft should also have an attached foreign inward remittance certificate (FIRC)or a letter issued by the bank that confirms the source of the investment made.
- Along with this, an NRI investor also needs to include general documents like proof of identity and address just like the resident investors.
- If you are a foreign investor, it can be quite a challenge to keep a track of your money and to react to certain market situations. Mutual funds allow you to have a power of attorney holder who can take a few decisions on your behalf. The attorney holder’s signature will be verified before carrying out any transaction.
- The NRI investor can decide to make a resident of India his/her nominee for the mutual fund scheme.
- When you want to redeem your money, it is either directly credited in your account or paid through cheques.
- Investments made via NRE or FCNR accounts or inward remittances are fully repatriable. However, in case of investments made through NRO account, only the interest amount is repatriable not the principal.
- The tax liabilities for foreign as well as Indian investors remain the same. However, for NRI investors the tax is deduced right at the source.

These are some of the things you need to keep in mind before making an NRI investment in the Indian stock market. These are the basics of investing in Indian markets, and how you can benefit from it.

Different Types of Services for NRI Accounts in India

An NRI account is a financial institution authorised by the Reserve Bank of India for Non Residential Indians to deposit their funds. There are various monetary organisations or banks in India that provide an array of products and services for NRI accounts. There are many direct banking channels that allows NRIs to easily transfer money and be assured that their hard-earned money is in good hands. Following is a list of different services that are offered by several banks across India.

1. Savings Account: This service allows non-residential Indians to store their money in Indian currency. You can transfer this money to any part of India or the world anytime the need arises. There are two types of NRI accounts – NRE savings account and NRO savings account. You can compare the benefits of both before taking the final call.

2. Current Account: If you are an NRI who wants to transfer money to an Indian NRI account but do not wish to take any interest benefits, you can open a current account. All the top Reserve Bank of India approved banks in India offer such facilities. You can either open an NRE current account or an NRO current account as per the services that suit you the best.

3. Deposit Account: NRIs can avail services like the Foreign Currency Deposits and Rupee Fixed Deposits. They let you utilise your earnings in Foreign or Indian currency more productively. The different types of accounts available are –NRE Fixed Deposits, NRO Fixed Deposits, FCNR Deposit.

4. Accounts for Returning Indians: Non-residential Indians who are returning to Indian to settle for a long period of time can open accounts like RFC Savings Account or RFC Fixed Deposits. The deposited amount can be re-transferred to the NRE or FCNR account once the account holder regains the NRI status.

These are the different types of NRI accounts that are availed by various banks in India like ICICI bank, HDFC bank, Axis bank, SBI bank and more. You can first compare the different facilities and flexibilities that come with each one of these accounts and then take the final call. The process is pretty simple, you just got to download an online form and fill it out. Next, you need to fill in the online mandate holder appointment form. And lastly, you need to fill out the ATM Card for mandate holder form and you are sorted.

With just a few simple clicks, you can make the NRI account of your choice and make international online transactions smooth and convenient. Simply make a mental list of your requirements and check out what the different banks have to offer.

Why Should You Have An NRE Account?

If you are an Indian living abroad, a Non Residential Rupee (NRE) account is something you must have. It is one of the safest and quickest ways to transfer your earnings to India. You do not have to pay any extra taxes to send your money to your loved ones back home. There are several direct banking agencies that allow you to swiftly make an online transaction while having control over your hard-earned income. Here follows the reasons why you should have one of these accounts if you work in a foreign country.

- Free Transfer: Various online money transfer services allow a free transfer of electronic cash between India and abroad. This makes the whole transferring experience hassle-free and feasible for Indians living overseas. You also get benefits like zero tax on the interest earned on your account.
- Very Accessible: Using an international debit card for your account, you can withdraw cash and shop worldwide easily. You can also mention a nominee while making the account, a person who can appoint to use your account on your behalf.
- Easy Management: It is very simple to manage the NRE account once it is made. You can transfer any amount of money to any part of the world without being charged anything extra. You can also carry out secure transactions 24 x 7 and also pay phone and electricity bills conveniently.
- Multiple Benefits: When you open this account, you get tax exemptions on interests earned on the amount in your account. You can also get free statement update via email and also a personalised cheque book. A few branches also offer free deposit lockers to store securities.

How to Transfer Amount from and to Your NRE Account:

- In order to transfer your money to your NRE account, you need to transact freely convertible foreign currency from abroad.
- You can directly remit a certain amount to the account from your bank account abroad.
- When you travel to India, you can carry foreign currency notes or traveller’s cheque and present it at the NRE account counter for carrying out any transaction.
- You can easily transfer money from your NRE or Foreign Currency Non-Repatriable (NRCF) account to other banks in any part of India.

Make online transfer safe and quick with the help of this account. Whether you live in the US, UK, Singapore or any Euro zone country, you can just create one of these accounts in order to smoothly transfer money to India or to keep it stored in India and transfer it to other parts in times of emergencies.

Pluses of Using Online Money Transfer Services

A lot of people who are working abroad often find the need to transfer money to their families living miles away in India. There are various online international money transfer services that make it easier and safer to send chunks of money to family or friends. Sending money to India has become so much simpler with the variety of technological developments in money transfer applications and sites. Following are the benefits of using online money transfer services.

- Amazing Exchange Rates: Various services draw comparison between the various existing exchange rates that are availed by various treasury providers and come up with the most feasible rate. Rather than focusing on a high profit margin, the companies work on high transaction turnovers. This in turn saves your money and you can carry out a smooth transfer of funds to your family back in India.
- Quick Transfer: The online transfer process is so swift that the transferred money reaches the overseas bank within 24 hours. It takes a maximum of three working days to reach the receiver’s account. This makes the transfer quick and convenient during emergency situations like purchase of property, investments or home maintenance.
- High Security: All the monetary transfer agencies make sure that the transactions are carried out within high security firewall systems so that you are assured that your money is in safe hands. State-of-the-art online systems are built to give you a safe and secure online money transfer experience.
- All Time Transaction:With the online systems in place, customers do not have to worry about transferring money at any time of the week. The services are available 24 x 7 so you can easily send money from the comfort of your home or office space. You can also check the status of your transaction at any time of the day from anywhere in the world.
- No Extra Charges- There are no hidden charges for transferring money abroad. You will neither be charged with any extra amount for clearance nor will you have to pay a commission. Simply transfer money at feasible exchange rates.
- Great Customer Service: These money transfer services make sure that you get the best customer service for all your queries. You can clear all your doubts, ask for transaction status and report complaints regarding any service at any point of the day.

These features make the international money transfer a very easy and convenient. So, there is absolutely no hassle if you are living abroad and wish to send a sum of money to your family or loved ones who are in India.