Demat account NRI problems

#1
Hi Guys,

I am an NRI trading with PIS demat account .

I got a few doubts about resident trading account .

With my account i have to keep shares for 3 days minimum, ie the shares reach my damat account only after 3 days after buying , because of this im facing problems in selling at right time... in resident account how soon can u sell the shares? means minimum time.. ???

About charges, i get charged .65% .(apart from this i saw some where in PIS account application i read as 100 rs per transaction for pis account- which i havent seen them charging yet) what are the normal commission rates in resident account ???

I feel i must open a resident account when ever i come to india.as there are too many restrictions on nri accounts, whats ur opinion
 

AW10

Well-Known Member
#2
PIS accounts are not allowed to do daytrading hence they need to take the delivery of stocks before selling them. This is not constrained for Resident account. You can sell the stock at right next moment after your buy order is execute.
Within certain limitation, you can even go short (i.e. Sell first without owning the stock and buy back later to close the position)

It maybe a problem if you are disclosing yourself as NRI (may be in IT returns filing etc) but trading on resident account.

Safest will be to open resident account on a family members name and trade that account. If account size is not running into 6 or 7 digits, then it shd be fairly easy.

Happy Trading
 

Similar threads