Download NRI service desk

Who is an NRI/PIO?
• Non- Resident Indian [NRI] means a ‘person
resident outside India’ who is a citizen of India
by virtue of constitution of INDIA.
• ‘Person of Indian Origin’ (PIO) means a citizen
of any country other than Bangladesh or
Pakistan, if
– A. he at any time held Indian passport; or
– B. he or either of his parents or any of his
grandparents was a citizen of India by virtue of the
Constitution of India or the Citizenship Act, 1955; or
– C. the person is a spouse of an Indian citizen or a
person referred to in sub-clause [A] or [B].
NRI FACTS
• Indian Diaspora is largest in globalized world --More than 20 million Persons of Indian Origin and
some 6 million Non resident Indians are spread
over 136 countries
• NRIs are heading home to enjoy the fruits of a
booming economy --- RoI in India is way greater
than RoI in developed countries
• NRIs remitted over $47 billion back home in 2007
What is the process for NRI to invest in
Indian Capital Markets?
• Open a bank account with a designated bank branch,
which is approved by RBI (Reserve Bank of India).
• Apply for a general approval for investment in Indian
Stock Market through this designated bank branch(P.I.S.
Account).
• Open a demat account with a depository participant
to act as registered holder of securities.
• Open account with registered Broking Firm to execute
transactions.
Passport copy.
 P.I.S. Permission letter.
 Foreign address proof.
 Local address proof.
 Pan card copy.
 NRE/NRO cheque.
 NRE/NRO statement.
 3 Passport Size photograph.
 Completely Filled Application Form.
Client opens a NRE /
NRO bank account &
flags it as PIS account
NRI
Client
Bank blocks
funds in the
PIS account
Scrips moved
to Demat a/c
Money collected
from PIS &
credited to client
Ledger
Client submits KYC
documentation along with
the Bank PIS approval letter
ZR client code
generated
Trading Limit
allocated
On Trade
execution ECN
sent to PIS a/c
 In Person verification of the Client is a must
when submitting his application in India
 For clients filling KYC forms abroad, all
documents need to be attested by the
Indian embassy / consulate general present
in the client’s country of residence
 Only delivery based transactions allowed
 Brokerage
rate
––
depend
on
Volume/Turnover
 All other account opening charges as per
KYC norms
 Compulsory Demat a/c in SGSSL alongwith
an active POA
 PIS a/c with designated bank – ICICI, HDFC,
& AXIS
Compulsory Open Demat & Trading a/c with SGSSL
Compulsory Open Demat & Trading a/c with SGSSL
Compulsory Open Demat & Trading a/c with SGSSL
 Pan card copy - NRI
 Foreign address Proof
 Local Address Proof
 Bank proof (NRE or NRO Bank account)
 PIS [Portfolio Investment Scheme] approval letter
 Cheque towards a/c opening charges (margin not
to be collected)
 For proof of residence – passport copy
 Photograph of the client(colour, passport size)
 Copy of power of authority (POA) issued in favor of
person who will act on behalf of NRI along with
proof of identity of POA holder (if applicable)
 Pan card copy - NRI
 Foreign address Proof
 Local Address Proof
 Bank proof (NRE or NRO Bank account)
 Cheque towards a/c opening charges
 Photograph of the client( colour, passport size)
 Copy of power of authority (POA) issued in favor of
person who will act on behalf of NRI along with
proof of identity of POA holder(if applicable)
 Local address for communication
 Must have separate client code for Repatriable
a/c and Non Repatriable a/c.
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NRE / NRO bank a/c in India
Designate / Flag the bank a/c as PIS [The concerned
bank will issue the RBI approval letter with the status]
KYC forms need to be accepted for NRI / PIO clients
only with the PIS approval letter. {Trading and Demat
a/c cannot be opened for NRI’s without the PIS letter}
KYC tags NRI client codes with a pre – determined ZR
series
On successful completion of all the account opening
formalities the client will be allocated a ZR series client
code
Compulsory Demat a/c with SGSSL with an active POA
status
 Only Cash market delivery based transactions allowed for NRI / PIO
clients
 Intraday / Derivatives / Commodities Not allowed
 Compulsory Transfer of holdings to the Demat a/c on every purchase
and selling allowed only from the Demat a/c
 Scrip Transactions need to be settled before they are allowed to be
squared – off. No open / Pending settlement will be allowed to be
squared off. E.g. if a client has bought on T – day he will be allowed to
sell only on T+3 day after the holdings have been transferred to the
Demat a/c
 No initial margin needs to be collected from the NRI client. Only
account opening charges to be collected from the client
 Different Contract notes will be generated for Different Trading
Transactions for every trading session. E.g. All BUY transactions in a
trading session will be clubbed in the same contract note and all sell
transactions in the same trading session will be clubbed in another
contract note
 Payments will be collected from & credited to the PIS bank account
on a bill to bill basis
 Though there will be separate CN’s generated, Banking – RM ledgers
will be settled as per the Net obligation on the client account
 For effective and speedy ops – client will have to authorize his bank
account to make payments and receive payments for trades done
through SGSSL
 NRI service desk for Personalized assistance to NRI / PIO
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clients
Dedicated Offline Equity Dealing desk
Online Equity Trading Platforms
Depository Services
NRI Investment Advisory desk
24 x 7 Online Services
Portfolio Investment Services
IPO & Mutual Fund Advisory Services
Online Mutual Funds
Support for Banking – PIS accounts
Pan Card assistance
 As per RBI Guidelines, NRI investments in equity shares should
not exceed 5% of the paid up equity capital of the company.
NRI client should verify from RBI Website using the following link
http://www.rbi.org.in/scripts/BS_FiiUser.aspx before buying of
any equity shares / debentures.
 In case the purchase of shares / debentures in a company
exceeds the prescribed limits the customer would be
instructed to sell the said shares / debentures immediately on
the same day or on the next working day in case the market is
closed for the day.
NRI service desk Tel. No.
0261 –2450773,2454647,2601297
Email address –
[email protected]
[email protected]