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PMS for NRIs

Unifi has been offering portfolio management services since 2002 presently serving over 290 families across 30 countries. This service is supported by a dedicated team responsible for compliance with RBI regulations and to maintain the high service standards synonymous with Unifi.

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RBI Regulations

Most NRIs find it complex and are unclear about how to go about investing into the Indian stock markets. The lack of information regarding the fairly extensive documentation and account setup process has proved a hurdle for many Indians based overseas.

As per RBI regulations, NRIs may:

Without limit, purchase on repatriation basis:

  • Government dated securities / Treasury bills
  • Units of domestic mutual funds;
  • Bonds issued by a public sector undertaking (PSU) in India.
  • Non-convertible debentures of a company incorporated in India.
  • Perpetual debt instruments and debt capital instruments issued by banks in India.
  • Shares in Public Sector Enterprises being dis-invested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids.
  • Shares and convertible debentures of Indian companies under the FDI scheme (including automatic route & FIPB), subject to the terms and conditions specified in Schedule 1 to the FEMA Notification No. 20/2000- RB dated May 3, 2000, as amended from time to time.
  • Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme, subject to the terms and conditions specified in Schedule 3 to the FEMA Notification No. 20/2000- RB dated May 3, 2000, as amended from time to time.

NRIs may, without limit, purchase on non-repatriation basis:

  • Government dated securities / Treasury bills
  • Units of domestic mutual funds
  • Units of Money Market Mutual Funds
  • National Plan/Savings Certificates
  • Non-convertible debentures of a company incorporated in India
  • Shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme, subject to the terms and conditions specified in Schedules 3 and 4 to the FEMA Notification No. 20/2000- RB dated May 3, 2000, as amended from time to time.
  • Exchange traded derivative contracts approved by the SEBI, from time to time, out of INR funds held in India on non-repatriable basis, subject to the limits prescribed by the SEBI.

DEMAT Account Guidelines

Open a bank Account

The first step in investing in Indian Stock Markets is to get a Bank Account. This will of course be to deposit the funds that you seek to invest into India. As a Non-Resident, the funds you deposit will naturally be in a foreign currency. What you need to decide, however, is whether you want your funds to be held in the foreign currency or in Indian Rupees. In banking terms whether you want your account to be repatriable or non-repatriable.

In simple terms repatriable accounts allow you to take out the balance held in the account in India, while in case of non-repatriable accounts, the money cannot be taken outside of India.

Trading Guidelines

A. Portfolio Investment Scheme (PINS)
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI) under which the 'Non-Resident Indians (NRI's)' and 'Person of Indian Origin (PIOs)' can purchase and sell shares and convertible debentures of Indian Companies on a recognised stock exchange in India by routing all such purchase/ sale transactions through their account held with a designated Bank Branch. The designated Bank maintains a record of all investments done under PINS (PINS portfolio).

B. Non - PINS
Any investment other than under PINS. Typically, this includes:

  • Subscription to Primary market offerings (IPOs)
  • Investments made when resident in India
  • Investments in Mutual funds
  • Investments in derivatives
  • Gifts and Inheritance

You may have to open demat accounts of a specific combination if you already hold physical shares in that combination. Physical shares can be converted into electronic form in your demat account by submitting the certificates along with a demat request form. You should also open the required combination under the correct type of demat account:

PINS NRE - For shares acquired earlier under PINS on repatriation basis

PINS NRO - For shares acquired earlier under PINS on non-repatriation basis

Non-PINS NRE - For shares acquired earlier other than under PINS on repatriation basis

Non-PINS NRO - For shares acquired earlier other than under PINS on non-repatriation basis and also when 'Resident' in India

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