How NRI in US can invest in indian stock ....

Discussion in 'Money Matters' started by Neeti, Sep 27, 2007.

  1. Neeti

    Neeti New IL'ite

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    Do you have any knowledge how NRI in US can trade in Indian stock market from USA. I came to know that they have certain polcy for NRI in US.I would appericiate your replies.

    thanks
    Neeti
     
    Last edited: Sep 27, 2007
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  2. balamotwani

    balamotwani Bronze IL'ite

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  3. Shanvy

    Shanvy IL Hall of Fame

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    hi Neeti,

    There are certain DP's that allow you to trade in the indian stock market as a nri. but you should have a pan card which is mandatory. and you cannot trade in certain shares.

    The DP's - ICICIDIRECT, SHAREKHAN, most of the banks do have share trading. you get yourself a account and then trade. agains the percentage of taxes, and service tax are different for nri.
     
  4. Tulasi

    Tulasi Silver IL'ite

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    Hi Neeti,

    As for as I know NRI's from US cannot directly invest in either BSE and NSE because of USsec regulations
    (with out having account set up in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:eek:ffice:smarttags" /><st1:country-region><st1:place>India)..</st1:place></st1:country-region>..but if you wish to Invest in Indian stocks listed in US markets like NYSE,NASDAQ you can do with out any problems they are called ADR's(American Depository Receipts)..I am not sure about all the regulations of USsec..you may need to check it out..

    Hope this helps
    Tulasi
     
    Last edited: Sep 28, 2007
  5. MeenLoch

    MeenLoch Silver IL'ite

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    Stock investment is an in thing these days and it s paying pretty well. I was in India and got the sharekhan DMAT accnt. Now I can trade from here. I have to start now. I also had an accnt back in india from which I ll trade online..Anyways once I start trading actively I ll let u know..
     
  6. Shobanag

    Shobanag Bronze IL'ite

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    Hi ladies - interesting topic. I think that Tulasi has brought up an valid point. I am hoping to check into it and see if I can shed some light on it. Since I am a tax accountant - I was thinking, if you have capital gains on the stock sales -do you have to pay tax to the Indian government? May be Varalotti can answer this question - since he is a CA in India. Another point is - I do know that as a US taxpayer, if you hold a foreign bank account or brokerage account valued over $10,000, you have to report that. It is a reporting requirement to the IRS.

    I will check into some more details - and post whatever I can find out.
     
  7. shravanthika

    shravanthika Senior IL'ite

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    Recently i have been thinking to invest in Indian share markets and the point that Tulasi brought in is really thought provoking.

    Shobanag..you also seem to be researching more on this.

    Ladies..please post your experiences,thoughts and other useful links reg this.
     
  8. Shobanag

    Shobanag Bronze IL'ite

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    Before I begin - there is a caveat - any information that I am giving below is not to be taken as tax advice. Please consult your tax advisor taking into consideration your individual tax situation. This disclaimer is required by IRS under Circular 230.

    One other point to note - which I brought up in my previous post is where the income earned will be taxed? In India or US. As a US taxpayer, you must pay tax on your "world-wide" income. But if this foreign income is also subject to tax in India and you will be entitled to a foreign tax credit - i.e tax paid to a foreign country, subject to limitations. If you read the article for which I have given the link below - it talks about global traders, etc. It is a long article but if you read from the paragraph titled "First, you need to report your foreign accounts" - you will get an idea about what I am saying above. Hope this helps.

    GTT RESOURCES - GLOBAL TAX FOR TRADERS
     
  9. jessicaroy

    jessicaroy New IL'ite

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    any differences in interest rates we will be getting? coz we would be bringing a lot of foreign exchange.
     
  10. MeenLoch

    MeenLoch Silver IL'ite

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    Dear ILs,
    I have a small query. As you all know, Indian banks on an average of 8% on FDs, whereas in US it s 3%..Now if you have free money floating around, and if you want a risk-free ventures, wouldnt it be nice to store them in FDs in India ?
    You earn here, but save the money there. Please throw some light on this.

    Love
    Vidya
     

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