Non- Resident Indian [NRI] means a ‘person resident outside India’ who is a citizen of India or is a ‘person of Indian origin’.
Who is a ‘person resident outside India’?
What is an ‘Overseas Corporate Body’ [OCB]?
Where can an NRI/PIO open a demat account?
Does an NRI need any RBI permission to open a demat account?
If NRI/PIO desires to make investments under different schemes, can he hold all such securities in a single demat account?
Does an NRI require RBI permission for dematerialiation/rematerialisation of securities?
Can securities purchased under repatriable and non-repatriable category be held in a single demat account?
In case a person who is resident in India becomes a non-resident, will he/she be required to change the status of his/her holding from Resident to Non-Resident?
In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of his/her holding from Non-Resident to Resident?
Can NRIs invest in shares, debentures and units of mutual funds in India?
Can an NRI purchase securities by subscribing to public issue? What are the permissions/approvals required?
Does an NRI require any permission to receive bonus/rights shares?
What is Portfolio Investment Scheme?
What is the procedure for making applications for Portfolio Investment Scheme?
What is a designated branch?
Whether NRI can apply through more than one authorised dealer?
Can an NRI purchase or sell shares or convertible debentures on a stock exchange in India on repatriation or non-repatriation basis under portfolio investment scheme?
What are the permissions required for the transfer of securities by NRI/ PIO through off-market trade (transfers outside the purview of Portfolio Investment Scheme of RBI)?
Can a DP ask for RBI permission for executing instructions for purchase or sale?
Can an NRI nominate or be nominated in depository account? Whether such nominee can be person resident in India?
What type of bank account details is to be given at the time of account opening and subsequently [by way of change of details]?
Tax implications NRI investments
CAPITAL ASSET SHORT – TERM LONG – TERM
Shares, Units of UTI, Mutual Funds, Zero Coupon Bonds, Debentures If period of holding is less than 12 months on the date of sale If the period of holding is more than 12 months on the date of sale
All other Capital Asset like immovable property, jewellery, etc If period of holding is less than 36 months on the date of sale If the period of holding is more than 36 months on the date of sale
The Capital Gain tax rates for non-resident individuals in relation to sale of securities for tax year 2010-2011 are as follows:
Short term capital gains (other than listed securities sold through a recognized stock exchange 30% plus applicable surcharge*
Short term capital gains on listed securities sold through a recognized stock exchange 15% plus applicable surcharge*
Long term capital gains (including unlisted securities and listed securities sold through private arrangements) 20% plus applicable surcharge*
Long term capital gains on listed securities sold through a recognized stock exchange Nil
Short term Capital Gain on other assets such as immovable property, Jewellery, etc 30% plus applicable surcharge*
Long term Capital Gain on other assets such as immovable property, Jewellery, etc. 20% plus applicable surcharge*
*  All of above are indicative
The above details recorded by the DP in the demat account may be used by the Issuer to directly credit dividend or interest.(Dividend/interest received on Investments made on repatriation and non – repatriation basis under Portfolio Investment Scheme is not an eligible credit to NRE (PIS) Account and NRO (PIS) Account respectively).
Reference:
  1. NRIs may read Master Circular number RBI/2004-05/4 dated July 01, 2004 relating to remittance facilities for NRIs/PIOs/Foreign nationals.
  2. RBI notification No: 20 dated 3rd May, 2000.
  3. FAQs hosted on RBI internet site www.rbi.org.in under the head "Chapter III - Investments in Securities /shares and company deposits.
  4. AP Dir Series Circular No. 16 dated October 4, 2004
Disclaimer
This FAQ is prepared based on NSDL’s (National Securities Depository Limited’s) understanding of FEMA regulations. While utmost care has been exercised while developing the FAQs, National Securities Depository Ltd. does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The readers are requested to keep abreast of the changes taking place in the underlying provisions of RBI.
Risk Factor   |   Terms & Conditions   |   Privacy Policy   |   Disclaimer   |  Sitemap 
Important Links:   SEBI   |   NSE   |   BSE   |   MCX   |   NCDEX   |   NSDL   |   CDSL  |   FMC
GANESH S SHANBHAG--BSE SEBI No.INS010695018 / 01-10777 affiliated to ISS SEBI No. INB011077733
2017-18 © SMS Financial Services. All rights reserved. Designed, developed & powered by C-MOTS Infotech (ISO 9001:2015 certified)