As an NRI you can purchase and sell shares / convertible debentures through stock exchanges. As per the RBI rules, you can do this through a Portfolio Investment Scheme (PIS) account.
You can buy shares up to the limits prescribed by RBI in a company. Your investments can be on repatriable or non repatriable basis.
Federal Bank is authorized by RBI to administer Portfolio Investment Scheme for NRIs and has tie-up with M/s Geojith BNP Paribas Financial Services Ltd and Doha Brokerage & Financial Services Ltd (DBFS) for the operations. NRIs in the GCC countries who have access to the offices of Geojit and DBFS can contact them for assistance.
Features
- The facility is available in all branches of Federal Bank throughout India.
- You have to obtain permission for investments in the shares/convertible debentures through stock exchanges. RBI has delegated Banks to receive application and issue permission to NRIs to start investment. Federal Bank is authorized to issue the permissions on behalf of RBI. Permission is issued by the Bank at the time of opening the account. You can download the application form from the website.
- You have to open separate NRE PIS account for repatriable and NRO PIS account for non repatriable investments. The accounts are in the form of SB accounts. The operations in the account are exclusively for stock market operations. No cheque books are issued in the account. Transfer / Withdrawal from PIS accounts will have to be done with the prior approval of the bank.
- Apart from NRE / NRO PIS accounts, Trading Account with broker and DP account with Federal bank or a broker has to be opened. Separate DP account for repatriable and non repatriable investments are to be opened.
- You have to give orders for purchase / sale of shares. Bank will make payment / receive payment from the broker for the transactions executed as per the order given by you. You have to give authorization to the bank for operating the account.
- DP account will be debited / credited by bank / broker as per your authorization. Bank will issue daily statement of transactions to you.
- On sale of investments, tax on capital gains if any will be deducted and remitted to Income Tax Dept by the Bank and Bank will issue the TDS certificate.
- Daily mandatory reporting to RBI and the regulatory compliance as to the limits up to which the investments can be made will be ensured by the bank.
- Statement of Holding of PIS securities will be available on request.
- Facility to view DP account and NRE / NRO PIS account through Fed Net Internet Banking facility is also available on request. Bank is having dedicated executives to attend your queries at its International Banking Dept, Ernakulam, Kerala and its representative office at Abu Dhabi
- You need only to issue the orders, the remaining procedures will be taken care of by the Federal Bank and the broker.
Charges / Average quarterly Balance
Average Quarterly Minimum Balance in the account is Rs 5,000.
Get the application and apply now!