Trading rules for Non resident of India (NRI)

[Vinayak]

Dear Buzz,

Its illegal for an NRI to hold a non-NRI account. Normally there are rare chances of authorities finding it. But to be legal you should hold only NRI account and should convert your non-NRI account to NRI. Also its mandatory to report all your shareholding companies and so about your NRI status as per RBI
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Regards,
Hari

Dear Mr. Hari

I'm an NRI now. I have an NRI bank a/c and proof of my NRI status (Visa on my passport..local address proof etc)

Earlier i.e. before I became an NRI, I had a normal Indian broking and share trading a/c. I wish to convert this to an NRI / NRE broking and share trading a/c. I have written to my broker seeking advise but they are not very helpful

What are the rules to be followed when converting an Indian Resident Broking & share trading a/c to an NRI a/c ? Is there some RBI Guidelines on this ?

Any URL / Link / Advise would be most appreciated

Request : Please post your reply here

Regards
Subu

 

[TFL]

Dear Mr. Hari

I'm an NRI now. I have an NRI bank a/c and proof of my NRI status (Visa on my passport..local address proof etc)

Earlier i.e. before I became an NRI, I had a normal Indian broking and share trading a/c. I wish to convert this to an NRI / NRE broking and share trading a/c. I have written to my broker seeking advise but they are not very helpful

What are the rules to be followed when converting an Indian Resident Broking & share trading a/c to an NRI a/c ? Is there some RBI Guidelines on this ?

Any URL / Link / Advise would be most appreciated

Request : Please post your reply here

Regards
Subu

Subu,

Its mandatory to convert your accounts to NRI a/c if you are an NRI.
Also as an NRI you are not allowed to trade intra-day means you need to take delivery of shares and you will not bellowed to trade in F&O segment.

Normally brokers will not show much attention to these kind of complex things which they are not doing usually or they are not aware of the matter. If you feels its tough to get it converted, the simple thing you can do is, open another account under PIS (will be fast) and also apply to close the existing account. usually everything should be completed in about 30 days.

 

[surfingminds]

I had opened my savings account with icici then demat and was trading in it with my portofolio now more than 10 lakh worth and it will keep growing.

I came to gulf and opened NRE with Icici bank. I still continue to hold my old icici savings account infact remmit money to NRE then online trasfer to my savings account and invest... I am not sure if its illegal even RBI says to close your old saving accounts who is doing that ultimate Aim for the bank is to keep track of outside money and don't allow it to mix with the local earned money by doing remittance that is taken care

so i don't think their is any legal penalties if authoritise find it it must be imposed for administrative ease only. .


But that is my guess , Any one daoing the same please let me know

cuz i know so many people who came out side but din't open NRE or NRO and continued with the savings account ..

I am sure if the money in my saivng accounts grows to say significant amount 1 crore or more then long term capital gains will apply and may but now even NRI money will come into tax bracket with new direct tax code so both ways u will have to pay tax to the money you invest in india.
But i am not sure how it will apply to the money you earn out side india .


So i do continue to maintain dual identity as I have to return back to india after finishing my contract.

Do let me know any body in similar situation or more information to my assumtions

 

[KajolThappar]

Are you sure you thought this through? Day trading & Forex? That's like throwing money out the window with one hand while playing craps with the other. The brokers will love you as long as your cash lasts. Verify what you read. Educate your self. Get diverse opinions.






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