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Non-Resident Indian (NRI) means a 'person resident outside India' who is a citizen of India or is a 'person of Indian origin'.
Under the Foreign Exchange Management Act,1999 (FEMA), a person who is NOT a 'person resident in India' as defined under Section 2 (v) of the Act is considered a person resident outside India'. The most important change in definition (since FERA 1973) is that the citizenship of a person no longer has a bearing in determination of residential status.
'Person of Indian Origin' means a citizen of any country other than Bangladesh or Pakistan, if
'Overseas Corporate Body' means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty per cent by Non-Resident Indians and includes overseas trust in which not less than sixty percent beneficial interest is held by Non-Resident Indians directly or indirectly but irrevocably.
NRI can open a demat account with any Depository Participant . The NRI needs to mention the type ('NRI' as compared to 'Resident') and the sub-type ('Repatriable' or 'Non-Repatriable') in the account opening form collected from the Depository Participant.
No permission is required from RBI to open a demat account. Holding securities in demat only constitutes change in form and does not need any special permission.
No special permission is required. Holding securities in demat only constitutes change in form and does not need any special permission. Permission taken (where required) at the time of acquiring the securities is adequate.
No. An NRI must open separate demat accounts for holding 'repatriable' and 'non-repatriable' securities.
As per FEMA rules, NRI must regularize his/her holdings to reflect change of status - in this case, bring them to 'Non-Resident' status. For this, NRI must submit (if not already submitted to the issuing company earlier) a letter addressed to the issuing company along with the Demat Request Form stating change of status and giving details of foreign address.
On becoming an NRI, a new depository account with appropriate NRI status is to be opened and all the balances held in account with 'Resident' status should be transferred to the account with NRI status & securites held under this account will be treated on non-repatriable basis.
On becoming a resident, a new depository account with appropriate status - 'Resident' in this case - is to be opened and all the balances held in account with 'Non-Resident' status should be transferred to 'Resident' status.
The issuing company is required to issue shares to NRIs on the basis of specific or general permission from GoI/RBI. Therefore, individual NRI need not obtain any permission.
Purchases made in the secondary market are investments under Portfolio Investment Scheme. Permission to buy in the market is given by authorised dealers under the Portfolio Investment Scheme on repatriable/ non-repatriable basis. The said permission is a one-time general permission.
Yes. For the purpose of determining ownership of holding, the first holder is taken into account. Hence, even though other joint holders may be persons resident in India, the sale proceeds of such securities can be repatriated in case the first holder is permitted to repatriate funds.
From NRI to NRI - No permission From person resident - No permission outside India to person resident in India (Gift) From person resident in - Application to RBI India to person resident by transferor outside India (Gift) From person resident in - Approval from GoI India to person resident and then RBI, if the outside India (Sale) acquisation is on repatriable basis. But if acquisation is on non-repatriable basis, approval only From person resident - RBI Permission outside India to person through form Ts1 resident in India (Sale).