Q: What is the penalty for premature withdrawal of FCNR accounts?
A: Interest in such cases is paid at one percent below the interest rate payable for the period for which the deposit has actually remained with the bank.
Q: Are funds in FCNR accounts freely repatriable abroad?
A: Yes, funds in FCNR accounts are freely repatriable.
Q: Are any tax concessions available to NRIs?
A: Income from interest on monies standing to the credit of accounts other than NRO accounts is exempt from income tax. Gifts from such accounts are also free of Gift tax.
Q: Can loans/overdrafts be given to third parties against the collateral/ security of NRI deposits in India?
A: Loans to third parties are allowed against the collateral/ security of NRI deposits subject to fulfillment of certain formalities. Loans/ overdrafts cannot be given for carrying on agricultural/...
Q: Can loans/overdrafts be repaid in Indian rupees?
A: Yes. Commercial rate of interest as applicable is charged if the adjustment is done in Indian Rupees.
Q: What is an Initial Public Offering (IPO)?
A: When an unlisted company makes either a fresh issue of securities or offers its existing securities for sale or both for the first time to the public, is called an IPO. This is used for listing and...
Q: Can NRI trade in ETF?
A: Yes, NRIs can trade in ETF.
Q: What are the regulations regarding NRI investments in shares?
A: * Daily square off is not allowed for NRI i.e intraday trades are not allowed for NRI clients.
* Clients can trade on delivery basis
* All contract notes of either buy or sell has to be reported...
Q: What are the steps than an NRI has to follow for equity trading?
A: * Open a bank account with an approved designated bank branch
* Take approval of designated branch for investments in Indian stock market
* Open a demat account with a depository participant.
Q: How does NRI invest in equities?
A: NRIs are allowed to invest in Indian stock market under the portfolio investment schemes.