NRI Services
There are a large number of Indians living overseas with a part of their family in India. With the complexities of jobs in foreign economies and the return on investment options available overseas, more and more Non Resident Indians and Persons of Indian Origin are looking towards India to participate in the growth that this country has to offer. What is most challenging for NRIs is the change in personnel at the various agencies each time they are visiting India. Our proposition to these NRIs is a seamless continuous process of investment management. All our services are on offer for NRIs as well.
Further, we are in a position to assist NRIs in obtaining PAN cards, opening bank accounts and advising on tax related matters.
An Indian citizen or a foreign citizen of Indian origin who has stayed outside India for employment/ carrying out business or vocation for 182 days and more indicating an intention for an unknown duration of stay overseas. Those who stay overseas on business visits, medical treatment, study or such other purposes, which do not indicate an intention to stay there for an indefinite period, are not considered as NRIs.
PIO means a citizen of any country (other than Bangladesh and Pakistan), if:
- He/She at any time has held an Indian passport or
- He/She or either of his/her parents or grandparents was a citizen of India by virtue of constitution of India or Citizenship Act, 1955 (57 of 1995) or
- He/She is a spouse of an Indian citizen or of a person referred above.
FII means an institution established or incorporated outside India, which proposes to make investment in Indian securities and is registered with SEBI
Yes. NRIs can maintain bank accounts in INR (rupee) as well as in foreign currency. Accounts in foreign currency can be maintained with authorized dealers/ bank only.
The three types of rupee accounts permitted, that can be maintained by NRIs are as follows:
- NRE: Non-Resident (External) Rupee Account
- NRO: Non-Resident (Ordinary) Rupee Account
- FCNR-B: Foreign Currency (Non-Resident) Accounts (Banks)
Non-Resident External Rupee (NRE) account is rupee account from which funds are freely repatriable. It can be opened with either funds remitted from abroad or local funds maintained in NRE/ FCNR accounts, which can be remitted abroad. The deposits can be used for legitimate purposes. The balance in the account is freely repatriable.
Non-Resident Ordinary Rupee (NRO) account is a rupee account and can be opened with funds either remitted from abroad or generated in India. The amounts in such account are generally non-repatriable. However, funds in NRO accounts can be remitted abroad subject to/ as per various directives in force at the time of repatriation. More details can be found on the Reserve Bank of India (RBI) website www.rbi.org.in
Yes, NRIs (except from USA and Canada) and FIIs can invest in mutual funds in India
No. An NRI does not need any specific approvals from RBI for investing in mutual funds. Only OCBs and FIIs require prior approvals before investing in Mutual Fund.
For an NRI the procedure of applying in a mutual fund is similar to the one followed by residents. The completed application form must be submitted along with cheques or bank drafts. Details of the Indian bank account of the investor must be furnished at the time of application. Investment cannot be made in foreign currency. Rupee cheques drawn from the investor’s bank account in India or from abroad payable in a bank in India or Rupee drafts purchased abroad payable at the city where the application is made must be provided. Usual facilities like nomination, appointing Power of Attorney is available for NRI investors as well. Redemption proceeds are paid in Indian Rupees directly crediting the account number provided at application. If investments are made on non-repatriable basis redemption proceeds will be credited to the NRO account of the investor. Similarly if a person turns an NRI after purchasing of units the maturity proceeds will not qualify for repatriation. However dividends are fully repatriable in all cases.
Mutual fund units are treated as capital assets and attract capital gains tax in India.
Equity Funds: If held for more than 12 months long term capital gains tax is applicable, which is NIL in case of equities and for periods less than that short term capital gains tax is applicable. No tax is to be paid on dividends received. Fixed Income/ Debt Funds: If held for more than 36 months long term capital gains tax is applicable and for periods less than that short term capital gains tax is applicable. No tax is to be paid on dividends received as dividends are paid net off Dividend Distribution Tax.
Indexation benefits are available for long term capital gains in debt funds. TDS applies on capital gains tax. TDS certificate or Form 16 A is dispatched to the investor along with redemption warrant. Mutual fund units do not attract wealth tax.