While the function of demat account trading account differ, they help you enter the markets, trade, and store your stocks. The demat account does the storing while the trading account helps you place orders.
NRIs can invest in the Indian stock market only though the Portfolio Investment Scheme (PIS) All secondary market transactions have to be reported to RBI within 24 hours Investments can be made on repatriable as well as on non-repatriable basis Different bank and demat accounts need to be maintained for repatriable and non repatriable investments As per Income Tax Act, tax (if applicable) has to be deducted at source on the profit made by NRIs. NRIs have to do delivery based trading only
Yes. A power of attorney holder can manage portfolio on behalf of NRIs. However, he cannot effect remittance outside India. With internet trading, life of NRIs has become easy for portfolio investments.
No, he has to obtain an NOC from the other Bank & the PIS permission would be transferred to HDFC Bank. An NRI can hold only one PIS Permission (1 NRE & 1 NRO) which is transferable.
No, these shares cannot be transferred into his NRE Demat Account.
For repatriable basis - NRE account is required and for Non repatriable basis - NRO account is required
The designated banks report all secondary market transactions to RBI on a daily basis Investment by single investor should not exceed 5% of total paid-up equity and preference capital of the company The overall ceiling for all NRIs put together is 10% of share capital. However, the company can enhance this limit to 24% by a special resolution Companies whose limit has reached 0.5% below threshold is put into Caution List. Fresh permission is required for dealing in these shares Once the limit is completed, the shares are put in Watch List and cannot be traded.
