Hi All,
There was another great thread around how NRIs can open PINS, or link demat accounts to NRO accounts and trade in India etc. This thread ceased on Jun 2009 so I decided to open a new one. More so because my situation is different from those in the earlier post
This is my situation. I am in the UK now for 3 years with frequent visits to India every year. This is how I used to trade and continue to do so
Pre-NRI
1. Demat with UTI, now taken over by Standard Chartered Wealth Managers with the linked account in UTI Bank which is now Axis Bank
2. Only do delivery based trading for long term. No F&O or day trading etc
Post-NRI
1. Did not do anything at all
2. Still continue to buy good A shares for long term growth
My dilemma
1. I do not want to sell out all my current shares bought when local. Actually the shares are now a mix of those bought when in India and now in UK so I have no idea which is which!!!
2. I also want to continue investing in secondary shares while here and then continue when I return back to India for good
3. I have no plans to repatriate my share investments and profits so happy for it to be local/NRO or whatever and be taxed accordingly
4. The worst part now - I spent 2 weeks hunting for info and checked the PINS route which is a total mess. In my case, I think I need 3 demat accounts!!!! One NRO PINS for those made while in UK using local cash, one NRE PINS for future investment when in UK and one ordinary one for previous investments made while in India without PINS - Total total mess!!!!
My question -
Can I keep my demat account as it is with Standard Chartered and convert my linked Axis Bank Account to NRO? This way I will be taxed 30% on interest earned, be able to continue investing and not have to go through all the mess of changing things.
Is this a fair thing to do or is it totally illegal???
Any help is much appreciated as I will be down in India for my annual break in the next 2 weeks. I do not want to spoil the wonderful setup I have for my investments by opening so many accounts!!!
Thanks
KP
There was another great thread around how NRIs can open PINS, or link demat accounts to NRO accounts and trade in India etc. This thread ceased on Jun 2009 so I decided to open a new one. More so because my situation is different from those in the earlier post
This is my situation. I am in the UK now for 3 years with frequent visits to India every year. This is how I used to trade and continue to do so
Pre-NRI
1. Demat with UTI, now taken over by Standard Chartered Wealth Managers with the linked account in UTI Bank which is now Axis Bank
2. Only do delivery based trading for long term. No F&O or day trading etc
Post-NRI
1. Did not do anything at all
2. Still continue to buy good A shares for long term growth
My dilemma
1. I do not want to sell out all my current shares bought when local. Actually the shares are now a mix of those bought when in India and now in UK so I have no idea which is which!!!
2. I also want to continue investing in secondary shares while here and then continue when I return back to India for good
3. I have no plans to repatriate my share investments and profits so happy for it to be local/NRO or whatever and be taxed accordingly
4. The worst part now - I spent 2 weeks hunting for info and checked the PINS route which is a total mess. In my case, I think I need 3 demat accounts!!!! One NRO PINS for those made while in UK using local cash, one NRE PINS for future investment when in UK and one ordinary one for previous investments made while in India without PINS - Total total mess!!!!
My question -
Can I keep my demat account as it is with Standard Chartered and convert my linked Axis Bank Account to NRO? This way I will be taxed 30% on interest earned, be able to continue investing and not have to go through all the mess of changing things.
Is this a fair thing to do or is it totally illegal???
Any help is much appreciated as I will be down in India for my annual break in the next 2 weeks. I do not want to spoil the wonderful setup I have for my investments by opening so many accounts!!!
Thanks
KP
