Thank you for your enquiry regarding a Non Resident Account.
Persons of Indian Origin are allowed to open bank accounts and trade equity in India under present Reserve Bank of India rules. We will guide you through the steps needed to activate a broking/trading account. We have many NRI clients and with senior management ex-NRIs themselves we understand the worries and problems most commonly faced.
To trade Equity in India (in the cash and/or futures markets) you will need the following:-
- A PAN Card (permanent account number) for tax purposes. This is now mandatory for anyone wishing to invest in Indian Equity Markets. . The form for this is available online from www.incometaxindia.gov.in. Should you require or help to obtain a Pan card there will be a charge of Rs.1500- for this. The pan card can be sent to your address abroad directly and takes approximately two weeks for you to receive.
- A Bank Account (NRE/NRO) with a Bank where you can apply for what is called PIS (Portfolio Investment Scheme) for which the Bank charges a nominal fee. We suggest you carefully check the charges the bank will take. (ICICI Bank is popular but very expensive. HDFC Bank is more reasonable in its charges). You may select any bank which offers you online banking. Since the RBI now allows Indians to withdraw per financial years USD 100,000 each the problem of convertibility back is no longer a major hurdle anymore. The Broker has no objection to the bank you select. We bank with HDFC, ICICI , Indusind and UTI Bank currently. Please open the account in a major city and in the larger branches so that you face no problems in service and so relevant paperwork can be submitted easily.
- Open a demat account (where your shares will be held) with the bank or any other depository (if you do not have we can help with opening of demat account). We can help you to open a demat account once you have a bank account and PAN number. Cost for first year is Rs.450- with the depository we use. New rules state that the NRI will have to be present in India to open the demat account if no local India address proof is available.
- Open a Broking account with JVCS (forms available from www.jvfinancial.com documentation section). Download free software for online trading. Recommendations and news is flashed online on your trading terminal . You may also trade on phone/email/yahoo messenger whichever suits your time zone and preference for trading. Completed forms should be sent to our Delhi office. Please contact us before sending the documents so we can confirm all papers are in order. Basically you need the completed JVCS Client Agreement, Bank Proof, Demat Proof, Pan Card Copy, Passport Copy, Residence Proof and a signed photo.
- Activate your account with margins by transferring funds or shares for trading limits. All back office details are available online along with contract note copy, financials, trades, net positions, stock ledger etc. Default trading limit is 5 times your margins which can be increased to 10 times .
Brokerage depends on average volumes + all govt taxes. Please let us know your approximate volumes for a brokerage quote. Default for NRIs is 0.40% to buy and 0.04% for day trading/futures + taxes. Brokerages lower for active accounts with larger volumes.
If you take delivery and the shares lie with us as margin, demat charges as per actuals would be charged. Otherwise we will transfer your shares to your demat account upon request. Shares lying with us would be used towards margins for further trades if required.
- Our online trading for clients system is the same screen that a broker uses and is far more powerful than normal web based trading and suits investors who are active and like more a user friendly interface. You can see a demo of the software from www.sharetrading.in .
Our exposure limits are based on the margins given in the form of cleared funds and pledgeable shares (as per NSE list). Margins as per NSE are payable by the clients. There is no limit on intraday turnover.
Tax on short terms gains is 10% and nil on long term (one year holdings).
- NRIs can trade futures on non repatriable basis and cash segment on repatriable basis.
Please note that USD 200,000 can now be transferred out of India per financial year by each individual so trading from a NRO account is now even easier and convenient for fund remittances out of India.
JV Capital Services