Investing Back Home - Ultimate NRI Guide
- Who is an NRI ?
Holds Indian Passport
An NRI (Non-Resident Indian) is a person of Indian nationality who resides outside of India for work, education, business, or other reasons for an extended period. NRIs typically live abroad but retain their Indian citizenship
They do not meet the criteria to be considered a “resident” in India as per the Income Tax Act. Specifically, if someone stays in India for fewer than 182 days in a financial year, they can be considered an NRI for that year.
- Who is PIO ?
Holds Foreign Passport
PIO are Indians who live Outside the Republic Of India. They are citizens of the countries other than : Pakistan , Bangladesh, Sri Lanka & Nepal. PIO is also someone
- Who has held Indian passport in the past or
- Who is a spouse of a citizen of India or a PIO
- Who or either of their parents/ grand parents/ great grand parents ware born and permanently resident in India as defined in Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any time a citizen of any of the aforesaid countries ( as referred above)
- Who is OCI ?
Holds Foreign Passport
OCI is a citizenship status given to People of Indian Origin, If:
- They were a citizen of India on the 26th Day of January 1950 or thereafter
- They were part of a territory which became a part of Republic Of India after the 15th day of August 1947
- They are Minors whose at least one parent is citizen of India
- They are the spouses of an OCI and married for two continuous years
- Bank Accounts For NRIs
NRE (Non-Resident External) Account and NRO (Non-Resident Ordinary) Account are types of bank accounts specifically designed for Non-Resident Indians (NRIs) to manage their income and funds in India.
| Parameters of Difference | NRE Account | NRO Account |
|---|---|---|
|
Acronym |
Non-Resident External Account |
Non-Resident Ordinary Account |
|
Meaning |
This account to transfer an NRI’s foreign earnings to India |
This account helps NRI to manage his income Earned in India |
|
Status of Taxation |
The interest paid by bank is Tax Free |
The interest is taxable |
|
Repatriability |
Balances are Fully Repatriable |
Repatriation Basis certain limits and conditions |
|
Deposits & Withdrawals |
The deposits are done in any foreign currency, but withdrawal are in INR |
The deposits are done in any currency including INR, but withdrawal are in INR |
- KYC documents for Opening Trading Account
| PARAMETERS | NRI | PIO | OCI | Mariner |
|---|---|---|---|---|
|
Id Proof |
Valid Indian Passport |
Valid Foreign Passport |
Valid Foreign Passport |
Valid Indian Passport |
|
NRI Status Proof |
Employment Visa/ Residence Visa/ Work Permit/ Student Visa/ Dependent Visa |
PIO Card/ Place of Birth as India on Passport |
OCI Card |
CDC/C1D |
|
Pan Proof |
Pan Card (Either Aadhar Seeded or Aadhar Seeding requirement marked as “Not applicable “in Income Tax database |
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|
Presence In India |
Latest Immigration Stamp |
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|
FATCA Declaration |
Evidence of Tin/Gin or Equivalent Document |
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|
Proof of NRE/ NRO Bank Account |
Cancelled Cheque/ Letter from Bank mentioning Bank account details |
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PIS Proof |
PIS Permission Letter/Letter from Bank mentioning PIS Bank account details |
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A/C Opening Charges |
NRE/NRO Savings Bank A/C favoring: Religare Broking Limited |
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Indian Address Proof |
Passport, Aadhar, Voter ID, Driving License, OCI Card |
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Foreign Address Proof |
Passport, Driving License, OCI Card, Utility Bill |
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|
POA (In case of US Based
Customer) |
POA Authorization, KYC of POA |
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- Financial Assets in Which NRIs can Invest In :
- Equity Shares on Repatriable ( NRE) and Non Repatriable (NRO) Basis
- Equity Derivative Trading only on Non Repatriable (NRO) Basis
- Mutual Funds
- PSU Bonds
- Bonds Issued by Infrastructure Debt Funds
- Listed Non-Convertible / Redeemable preference shares or debentures
- Exchange Traded Funds
- Debt Instruments issued by Banks
- Government Dated Securities
- What is PIS ?
- Portfolio Investment Scheme (PIS) is a scheme of RBI, allows NRIs to invest in shares of listed Indian companies, in secondary market, under repatriation basis on a recognized stock exchange.
- NRI can open both NRE – PIS & NRO – PIS accounts with an authorized Bank for settlement of Buy/Sell at exchanges.
- An individual NRI is authorized to operate only 1 PIS account of each type (One NRE PIS & One NRO PIS)
( E.g. if the NRE PIS account is opened with HDFC Bank, another can not be opened with ICICI Bank. Need to close the existing NRE PIS account and obtain the NOC from HDFC bank to open new NRE PIS account with ICICI Bank) - PIS account Can Not be a joint account
- PIS Permission Letter
- Issued by an ADI Bank on behalf of RBI to an NRI
- Mandatory for Buying and Selling shares in stock exchanges on repatriable basis
- Not Required for IPOs, ESOPs, Right Issues, MFs, ETFs, Bonds or Debt Securities Etc.
- NRI Trading Process for Customer
- Address Proof that are accepted
| DOCUMENTS | INDIAN | OVERSEAS |
|---|---|---|
|
Proof of possession of Aadhar number |
Yes |
No |
|
Valid Passport |
Yes |
Yes |
|
OCI/PIO Card |
Yes |
Yes |
|
Valid Driving Licence |
Yes |
Yes |
|
Voter Id card Issued by Election Commission Of India |
Yes |
No |
|
Job card issued by NREGA duly signed by an officer of the state Government |
Yes |
No |
|
Letter Issued By NPR confirming details of name, address |
Yes |
No |
|
Utility Bill not older than two month of any service provider (Electricity, Water, Fixed landline Bill, Gas) |
No |
Yes |
|
Municipal Tax or Property Receipt issued by Government Authority |
No |
Yes |
|
Bank Statement by any Bank, Indian or Overseas, Not older than 2 Months |
No |
Yes |
|
Lease/Rent/Leave & License agreement indicating the address of the customer duly Registered with the Government Authorities. |
No |
Yes |
|
Permanent Residence Permit/Work Permit/Government Issued Document/Government ID
|
No |
Yes |
|
* For Mariners, CDC or Contract Letter |
No |
Yes |