Help For An Nri

Bidder · #1 29th August 2006, 01:48 AM

Hi all I am an NRI interested in trading. New to this site.
I wanted to do trading online, but i understood that it is not possible for NRIs to do Intra-day trading. In that case i have only one option which i do not know whether is it feasible and profitable.

Any of the senior members please help.
My query is
1. Since i cannot do Intr-day trading, can i buy the shares through ICICI direct today and sell it the next day (provided the share price is up) ?

for example yesterday, INFOSYS share price was RS 1766.70
Today it is RS 1772.75

So there is an increase in RS 6.05 per share. If I have 1000 shares with me, it will add up to RS 6000. Yes i know that there will be commission involved.

Is it possible to do so?

Thanks And regards
Bidder

Raghuram2404 · #2 29th August 2006, 10:29 AM

Hi Bidder,

This is from the ICICI direct site FAQs - apparently,
As per the Regulations, NRI investors should take delivery of shares purchased and give delivery of shares sold which implies that for sell transaction you have to give delivery irrespective of the fact that the same shares have been bought by you in the same settlement cycle. For buy transaction, the stock would be credited to your Demat account independently.

As long as your sell transaction is backed by actual holdings in your Demat account and the buy transaction is validated against the trading limits available, you can do two independent buy and sell transactions in the same stock in the same settlement cycle.

Again another FAQ from the site for your reference:
I have bought some shares but they still have not come to Demat account. Can I sell them?

No. You will have to wait till the shares come into your Demat account before selling them.

Trust the above answers your queries

Best Regards

agupta · #3 29th August 2006, 01:39 PM

Some of the smaller borkers allow BTST trades so you would be able to execute the transaction as mentioned by you above. Be advised though that you would be responsible for any profit/loss due to short/bad deliveries.

Bidder · #4 29th August 2006, 06:51 PM

Thanks for the response.

Hi Raguram, please explain in simle terms as i am not familiar with the jargons associated with trading.

thanks

Raghuram2404 · #5 30th August 2006, 10:42 AM

Hi Bidder,

NRIs are not allowed to do intra day trading.
It means they have to take delivery of stocks.
As regards ICICI direct, they have clearly stated in the website that NRIs can sell only those shares that appear as their holding in their Demat account.
Bottomline is that if a scrip that u have purchased has not been credited to your demat account, you cannot sell that.
So, pleas check your demat account to ensure that the shares have been credited before you sell them off.
Regarding buy today sell tomorrow, I suppose it is fine as long as the shares that you bought have been credited to ur demat account. You can do this by going to the "Demat Allocation" link in the "trading" page of ICICI Direct.

Hope the above clarifies your query

Regards