19:43 Nov 28, 2014  

FAQs

  • Who can open an NRI 3in1 Account with HDFC securities?
    An NRI, PIO & a seafarer can open a 3in1 Account (Availability subject to jurisdictions permitting Investment in & Trading of Indian Securities on Indian Stock Exchanges).
  • Who is defined as a NRI ?
    Who is citizen of India, who is resident outside India for more than 180 days in the previous financial year
  • What does Person of Indian Origin (PIO) mean?
    A citizen of any country other than Bangladesh or Pakistan who had (a)At any time held Indian passport or (b)He or either of his parents or any of his grand-parents was a citizen of India by virtue of the constitution of India or the Citizenship Act 1955 or (c)The person is a spouse of an Indian citizen or a person referred to in (a) or (b)
  • Do we offer 3in1trading account to USA & Canada based NRIs & PIOs ?
    NO
  • What type of accounts does an NRI need to start investing with HDFC Sec?
    NRE/NRO Regular Savings Account with any branch in India.
    NRE/NRO PIS Savings Account with designated Branch.
    NRE/NRO PIS permission through HDFC Bank.
    NRE/NRO Demat Account with HDFC Bank.
    NRI Trading Account with HSL.
  • Where the investments have to be done on repatriable basis?
    NRE account is required.
  • Where the investments are done on non-repatriable basis?
    NRO account is required.
  • What are the regulations for NRIs to invest in India?
    NRIs can invest in the Indian stock market only though the Portfolio Investment Scheme (PIS) All secondary market transactions have to be reported to RBI within 24 hours Investments can be made on repatriable as well as on non-repatriable basis Different bank and demat accounts need to be maintained for repatriable and non repatriable investments As per Income Tax Act, tax (if applicable) has to be deducted at source on the profit made by NRIs. NRIs have to do delivery based trading only
  • Why Portfolio Investment Scheme (PIS)?
    The designated banks report all secondary market transactions to RBI on a daily basis Investment by single investor should not exceed 5% of total paid-up equity and preference capital of the company The overall ceiling for all NRIs put together is 10% of share capital. However, the company can enhance this limit to 24% by a special resolution Companies whose limit has reached 0.5% below threshold is put into Caution List. Fresh permission is required for dealing in these shares Once the limit is completed, the shares are put in Watch List and cannot be traded
  • What are the one time account Opening charges?
    One time Trading Account opening Fees of Rs 2,500. One time PIS approval issuance Fee Rs 1,000. The brokerage is 0.75% of the Transaction value subject to a minimum of Rs.25.00 per order, subject to a ceiling of 2.5% of the total traded value plus Service Tax of 12.36% on brokerage value, Securities Transaction Tax of 0.1% on transaction value, Stamp duty is 0.01% on transaction value, and Sebi Turnover Tax is 0.0001%.Further the Brokerage for scrips less than Rs.10 per share is Rs.0.05 per unit .Brokerage will be charged within the limits prescribed by SEBI / Exchanges. (Both Buy & Sell) & any other statutory levies as prescribed by the government from time to time
  • Can power of attorney holder manage portfolio on behalf of NRIs?
    Yes. A power of attorney holder can manage portfolio on behalf of NRIs. However, he cannot effect remittance outside India. With internet trading, life of NRIs has become easy for portfolio investments.
  • Can NRIs avail of loan against such securities?
    Yes. NRIs can borrow against shares or other securities. However, the loan should be utilized for meeting the borrower's personal requirements or for his own business purposes.
  • Who can be the joint holders in PIS permission?
    In NRE PIS PERMISSION ... All holder should be NRIs

    In case of NRO PIS PERMISSION, ..... first holder needs to be NRI and other joint account holders can be residents.
  • What is the difference between NRE & NRO Bank Account?
    Particulars NRE a/c(Non-Resident(External) a/c) NRO(Non-Resident Ordinary Rupee a/c)
    Who can open an account NRIs Any person resident outside India
    Joint account of two or more NRIs Permitted Permitted
    Joint account with another person resident in India Not Permitted Permitted
    Currency in which account denominated Indian Rupees Indian Rupees
    Repatriability: Principal Freely repatriable Not repatriable
    Interest Freely repatriable Freely repatriable
    Foreign Currency Risk Account holder is exposed the fluctuations in the value of INR Account holder is exposed the fluctuations in the value of INR to the extent of interest amount
    Types of account Current, Saving, Fixed deposits Current, Saving, Fixed deposits
    Period of fixed deposits For the period as announced by the deposit taking bank For the period as announced by the deposit taking bank
    Rate of interest Banks are free to determine the interest rates Banks are free to determine the interest rates
  • What is the use of the three Annexures in the PIS form ?
    The three Annexures in the PIS Form are to be used for filling up the details of shares held by the NRI customer in various capacities.Click here to download Annexure 1 (NRE), Annexure II-NRO, Annexure III-NRO.
  • If an NRI is already holding a PIS permission with another Bank can we open a fresh PIS permission ?
    No, he has to obtain an NOC from the other Bank & the PIS permission would be transferred to HDFC Bank. An NRI can hold only one PIS Permission (1 NRE & 1 NRO) which is transferable.
  • Can shares held in NRO Demat A/c be transferred to NRE Demat Account ?
    No, these shares cannot be transferred into his NRE Demat Account.
  • What are the combinations that can be used for opening a PIS Account?
    PIS Account is always opened as per the holding pattern of the Demat Account. Thus if Demat Account exists in combination of A + B + C, then the PIS permission too would be in combination of A + B + C. However, the Bank Account can be solely in the name of A.
  • Is Capital gain tax applicable on Stock and Gold ETF Investments by NRIs?
    If the shares are sold within 1 year from the date of its purchase then 17% Tax is deducted at source (with surcharge) levied on the gain as Short term capital gain tax.However, no Long term capital gain tax is applicable on stock investements if held more than 1 year from date of purchase.
    In case of Gold ETFs, if units are sold within 1 year from the date of its purchase then 33.99% Tax is deducted at source (with surcharge) levied on the gain as Short term capital gain tax.If the Gold ETF units are sold after 1 year from the date of its purchase then 22.66% Tax is deducted at source (with surcharge) levied on the gain as Long term capital gain tax.

 

 
 
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