NRI Investment in Stock & Shares
We have an exclusive NRI Cell functioning to meet the requirements of our NRI clients. The cell assists
NRI clients to invest in Stocks and shares, opening accounts on repatriation/non repatriation basis,
placing orders, providing investment advice and also acts as a single window point to resolve queries
related to any matter related to their dealings with the company.
Account Opening :
We take care of all the paperwork and procedures involved in opening NRI client accounts and bank accounts
on Portfolio Investment Scheme.
Order execution and related reporting:
NRI clients have the option for registering for our internet trading facility or they can execute their orders through email, sms or telephonic communication. NRI clients can know their financial balances, trade confirmations and holdings directly from the NRI cell.
Online options available :
We have exploited modern technology to offer NRI clients online order execution through our internet trading facility, online client back office whereby clients can see their financial balances and demat holdings online.
Equity research :
NRI clients can also utilize the equity research advice provided by our equity research department through the NRI cell.
FAQ ON INVESTMENT BY NRI
Who is a Non-resident Indian (NRI) ?
An Indian Citizen who stays overseas on a job or carrying on business or vocation outside India or stays overseas under circumstances indicating an intention for an uncertain duration of stay overseas is a non-resident.
Investment by NRI's in Company Share and Debentures
NRIs can invest in new issues of shares/ debentures by Indian companies. They can also purchase shares / debentures of existing Indian companies, under Protfolio Investment Scheme (PIS).
Investment on Repatriation Basis
Means you can take back your capital, profits, and dividends in foreign exchange, which you invested originally in foreign exchange. NRIs are permitted to invest in shares/convertible debentures of Indian companies under Protfolio Investment Scheme (PIS).
Investment on Non-repatriation Basis
Means you can get back the proceeds only in Indian rupees, irrespective of the currency you used to invest in the same. Normal procedures for investing in shares/debentures of a company and mutual fund units are applicable here. You cannot repatriate your investment/capital in foreign exchange. The investment made can be in new issues of companies or listed shares in Stock Exchanges . Investment on non-repatriation basis can be made from NRE / FCNR / NRO accounts.
What steps an NRI needs to take to start investing in the Indian Stock Market
(a) An NRI should open a new bank account with designated bank branch, which is approved by RBI (Reserve Bank of India) for this purpose.
(b) He should apply for a general approval for investment in Indian Stock Market through his designated bank branch.
(c) He should open Demat Account with a Depository Participant to hold his shares.
(d) He needs to register with a broker to execute his buy/sell orders on the Stock Exchange(s).
Portfolio Investment Scheme (PIS)
What is Portfolio Investment Scheme(PIS) or PIS ?
Potfolio Investment Scheme(PIS) is a scheme of the Reserve Bank of India defined in Schedule 3 of the Foreign Exchange Management Act 2000, under which the Non-resident Indians (NRIs) and Person of Indian Origin (PIOs) can purchase and sell shares and convertible debentures of Indian Companies through a recognized Stock Exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch. Any NRI or a PIO to trade or make fresh investments in the Indian Equity Secondary Market needs and must have a PIS account with only one designated bank of India.
How can one open a PIS account with a Bank ?
NRI has to apply one of the designated Banks in a prescribed format for PIS account, upon which the Bank can issue a PIS approval letter to the investor.
Is there any limit for purchase by NRIs under the Portfolio Investment Scheme ?
Yes. An NRI can purchase upto a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be. For the purpose of this ceiling, investment under the Portfolio Investment Scheme on repatriation as well as non-repatriation basis will be clubbed together. There is an over alll ceiling of 10% of paid-up equity share capital of the company/paid-up value of each series of convertible debentures for purchase by all NRIs/OCBs put together. The overall ceiling can be raised if the company concerned passes a special resolution to that effect at its general body meeting.
Can NRI 's subscribe to public issues? What are the permissions/ approvals required ?
Yes. The issuing company is required to allot shares to the NRIs on the basis of specific or general permission from GOI/RBI. Therefore, individually NRIs need not obtain any permission.
NRI 's need RBI permission for rematerialization/rematerialization of securities?
Yes. An NRI can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be. For the purpose of this ceiling, investment under the Portfolio Investment Scheme on repatriation as well as non-repatriation basis will be clubbed together. There is an over alll ceiling of 10% of paid-up equity share capital of the company/paid-up value of each series of convertible debentures for purchase for purchase by all NRIs/OCBs put together. The overall ceiling can be raised if the company concerned passes a special resolution to that effect at its general body meeting.
How can one open a PIS account with a Bank ?
NRI has to apply one of the designated Banks in a prescribed format for PIS account, upon which the Bank will issue a PIS approval letter to the investor.
Can NRIs invest in debentures and units of Mutual Funds in India?
NRIs are permitted to make direct investments in debentures of Indian companies/units of Mutual Funds. They are also permitted to make portfolio investments i.e. purchase of share/debentures of Indian Companies through Stock Exchanges. These facilities are granted both on repatriation and on non-repatriation basis.
Does an NRI require any permission to receive bonus/rights shares ?
No
How Capstocks Portfolio Investment Scheme(PIS) benefits you?
Portfolio Investment Scheme (PIS) account allows NRIs to invest in shares of Indian companies under repatriation or non-repatriation basis. PIS account will assist NRIs in getting their transaction done in a smooth, seamless and hassle-free manner. Low cost of transaction & Seamless reporting to RBI and complying with all statutory regulations on your behalf. Mandate of Power of Attorney facility is available so that in your absence from the country you can authorise your relative or friend to operate or conduct banking transactions on your behalf.
