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How to Trade in Indian Stock Market with Portfolio Investment Scheme

A portfolio investment scheme (PIS) lets non-residential Indians (NRIs) to trade or invest in the Indian stock exchange. Once you register yourself for this scheme, it becomes easy to make NRI investments in the Indian market. There are several Reserve Bank of India (RBI) approved banks like HDFC, Axis, ICICI, SBI and more that offer this scheme to its NRI account holders. NRI customers can carry out transactions through various branches of these banks from any part of the world. Here is how you can go about trading in the Indian stock market by enrolling into a portfolio investment scheme.

– Firstly, you will need to fill out a form for your NRI account. This form must be filled thoroughly and signed by all the account holders. It must include all the details regarding purchases of shares via the primary stock market.
– The NRI account holder will also have to fill the PIS application form in order to enroll into this scheme.
– The NRI investor should also produce the tariff sheet for the bank to review.
– A Demat holding statement also must be filled and submitted at the designated branch.

These are the mandatory documents that are required for applying for PIS. This is the first step for NRI investors to be able to trade in the Indian stock market. So, what is the best way for NRIs to invest in the Indian market? Let’s find out:

– It is a great idea to invest in India-specific funds introduced by US mutual funds. Or you could go for Indian mutual fund organizations that let NRIs to invest in their schemes.
– All the investments made by NRIs should be in Indian currency, which is rupee. Indian mutual funds are obligated to trade only in the local currency. This is why the foreign investor must open an NRI accounts like the non-resident ordinary rupee (NRO), the non-resident external rupee, and the foreign currency non-resident (FCNR).
– The amount you want to invest in Indian markets must be debited from one of the NRI accounts or from an inward remittance via general banking channels. An NRI can also send a demand draft or cheque with the help of the exchange house abroad and draw it to its corresponding Indian bank.
– Only after proper authentication and id verification can an NRI investor start trading in India. Therefore, one must make sure that all his/her documents are in place and ready for approval.

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