Q: Do NRIs require PIS permission to sell shares which were purchased in primary markets (IPOs) on repatriable/ non-repatriable basis?
A: No, NRIs don't require PIS permission to sell shares which were purchased in the primary markets (IPOs) on a repatriable and non-repatriable basis.
Q: Can a PIS account be opened with a joint holder?
A: The PIS account cannot be a joint account. As per recent RBI guidelines, NRIs should have a separate bank account exclusively for PIS purposes. Transactions relating to their personal banking as...
Q: If the NRI customer purchases shares or convertible debentures in excess of prescribed limit?
A: NRIs will have to off load such portion of the holding, which is in excess of the prescribed limit.
Q: Is there any limit for purchase/sale of shares/convertible debentures by an NRI in the secondary market?
A: Yes. NRIs can purchase up to a maximum of five percent of the paid-up capital of a company and a maximum of five percent of the paid-up value of each series of debentures. For the purpose of this...
Q: Can NRI receive shares in inheritance?
A: Yes, as an NRI you can receive shares in inheritance. RBI permission is not required to be obtained and the shares will be held on a non-repatriable basis.
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 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...