In today's intricate and volatile market your investment
requires constant monitoring and attention. The demand made
on your time and energy by other business may not leave you
with capacity to attend to your personal portfolio with the
degree of care you deem appropriate. We at KARVY understand
your situation and offer PMS services taking the same level
of care and attention you would devote to monitoring your
portfolio.
GreenWallet is an endeavour specially designed by
Karvy to enhance the wealth of a niche segment of investors.
This service primarily meant for HNIs (High Networth
Individuals) offers customers a wide range of schemes. These
unique schemes seek to achieve higher returns through broad
based participation in equity markets. This is achieved by
creating a diversified equity portfolio of small, medium and
large capitalized companies.
Person who does not reside in India for more than 182 days in any preceding financial year.
Non Resident Indians is also someone who fall under the following broad categories:
Indian citizens who stay abroad for employment or for carrying on a business or vocation or for any other purpose in circumstances indicating an indefinite period of stay outside India.
Indian citizens working abroad on assignments with foreign Governments/government agencies or International/Regional Agencies like the UNO, IMF, World Bank, etc.
Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.
But does not include:
A person who has gone out of India or who stays outside India, in either case
for or on taking up employment outside India, or
for carrying on outside India a business or vocation outside India, or
for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.
A person who has come to or stays in India in either case, otherwise than:
for or taking up employment in India, or
for carrying on in India a business or vocation in India, or
for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period
Any person or body corporate registered or incorporated in India,
An office, branch or agency in India owned or controlled by a person resident outside India,
An office, branch or agency outside India owned or controlled by a person resident in India.
NRIs are allowed to invest in Indian companies under the Portfolio Investment Scheme (buying through the secondary market) and through the Direct Subscription route (Investments through IPOs / Private Placements).
Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of Foreign Exchange Management Act 2000 under which the ‘Non Resident Indians (NRIs)’ and ‘Person of Indian Origin (PIOs )’ can purchase and sell shares and convertible debentures of Indian Companies in secondary market through a registered broker on a recognized Stock Exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch (Authorized Dealer – AD)
NRE account:
NRIs/ PIOs are permitted to open bank accounts in India out of funds remitted from abroad, foreign exchange brought in from abroad or out of funds legitimately due to them in India.
Such accounts can be opened with banks specially authorized by the Reserve Bank in this behalf.
NRIs and PIOs are eligible to open NRE Accounts. These are rupee denominated accounts. Accounts can be in the form of savings, current, recurring or fixed deposit accounts. Accounts can be opened by remittance of funds in free foreign exchange.
Foreign exchange brought in legally, repatriable incomes of the account holder, etc. can be credited to the account. Joint operation with other NRIs/PIOs is permitted. Power of attorney can be granted to residents for operation of accounts for limited purposes.
The deposits can be used for all legitimate purposes. The balance in the account is freely repatriable. Interest lying to the credit of NRE accounts is exempt from tax in the hands of the NRI. However, TDS on capital gains as per the prevailing tax provisions is processed by the Authorized Dealers before giving credit to the NRE account
Funds held in NRE accounts may be freely transferred to Foreign Currency Non Resident (FCNR) accounts of the same account holder. Likewise, funds held in FCNR accounts may be transferred to NRE accounts of the same account holder.
NRO account:
These are Rupee denominated non-repatriable accounts and can be in the form of savings, current, recurring or fixed deposits. These accounts can be opened jointly with residents in India. When an Indian National /PIO resident in India leaves for taking up employment etc. outside the country, other than Nepal or Bhutan, his bank account in India gets designated as NRO account.
The deposits can be used to make all legitimate payments in rupees. Interest income from NRO accounts is taxable. Interest income, net of taxes is repatriable.
Funds can be freely transferred from NRE account to NRO account. But No funds can be transferred from NRO account to NRE account.
Source of Funds:
By foreign inward remittance by way of TT, DD, cheque, Travellers cheque, foreign currency, etc., or transfer from existing NRE or FCNR accounts.
Permitted Credits
Foreign inward remittances including foreign currency and TCs
Transfer from existing NRE or FCNR accounts
Maturity proceeds of government securities, NSCs, units of UTI, refund of shares or debentures provided the investments were made originally from funds in NRE or FCNR accounts
Dividends or interest in respect of shares, debentures taken on repatriation basis provided investments is as per RBI approval
Refund of shares or debentures, if the subscription was paid from NRE or FCNR accounts or remittance from abroad
Refund of application or earnest money by the house building agencies, provided original payment was made out of NRE or FCNR accounts, or from inward remittance
Permissible Debits
Transfer to NRO, FCNR or RFC accounts
For investments in Units of UTI, NSCs, deposits, etc.
For all local payments
Acquisition of immovable property for bona fide residential purpose
NRI can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be. For the purpose of this ceiling, investment under the Portfolio Investment Scheme on repatriation as well as non-repatriation basis will be clubbed together.
There is an overall ceiling of 10% of paid-up equity share capital of the company/paid-up value of each series of convertible debentures for purchase by all NRIs/ OCBs put together. The overall ceiling can be raised to 30% if the company concerned passes a special resolution to that effect in its general body meeting.
Shares/convertible debentures acquired through IPO/Private Placement are excluded for the purpose of above limits.
NRIs are not allowed day trading or speculative trading. It is mandatory that the securities need to come from DP account of NRI only. NRIs are allowed to do only delivery-based business.
NRIs are subject to taxation according to the tax laws of India on investing in the Indian stock markets.
Short Term Capital Gain: arise when the a NRI investor sells his investment within one year of his acquiring the same. STCG is taxed as per the existing Income Tax Law applicable to residents.
Long Term Capital Gain: arises when a NRI investor sells an investment which he has held for more than one year. Incase of LTCG, a flat tax of 0% is applicable for individuals and corporates.
