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Yes.

Your investment in India through the Stock Market is governed by the following regulation:

  1. Foreign Exchange Management Act (FEMA) supervised by RBI
  2. Income Tax Act, 1961 supervised by Income Tax Department, Govt. of India
  3. SEBI regulation for Exchanges, Stock Broker and Depository

You can invest on Repatriable Basis (NRE) or Non-Repatriable Basis (NRO) or both.

When you open NRE PIS Bank Account: Your Bank provided you with the following THREE services besides usual banking Services:

  1. Applying to RBI and taking PIS (Portfolio Investment Scheme) permission. This is a one-time activity. This is a requirement under FEMA.
  2. Reporting all your transaction routed through PIS Bank Account to RBI on a regular basis. This is a requirement under FEMA.
  3. Calculating, Deducting and Depositing you tax liability arising out of shares sold through PIS Trading Account and proceeds credited to PIS Bank Account. This is required due to Section 195 of the Indian Income Act,1961.

FEMA has been amended in Feb 2016, and NRI investing through Non-Repatriable Basis (NRO) route are not required to take PIS permission and hence no requirement of reporting transaction to RBI.

In a nutshell, Service Number 1 and 2 mentioned hereinabove are no longer required for NRO Account. However, Service Number 3 is still applicable.

Banks are willing to provide Service Number 3 as mentioned hereinabove for NRO Account BUT at the same taking charges which they are taking for NRE PIS Account. In such case, your Banker will open your normal NRO Saving Bank Account, will insert Dummy PIS permission Number, so their software will behave as if this is PIS account and will rename this as NRO Investment Account and will provide you Tax Deduction Service.

ProStocks is now bring to you NON PIS NRO Trading Account.

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 1st July, 2020) and you would be able to trade in equity segment just like Resident Indian. No Custody Account, No hassle of dealing with Custodian or PIS Banker besides Stock Broker. No PIS Bank Account required.

What are the documents required for opening an NRO Account?

Following are the document required for opening NRO Trading and Demat account:

  1. Attested copy of PAN card,
  2. Attested copy of overseas address proof – Copy of Driving License/Foreign Passport/Utility Bills/Bank Statement (not older than 2 months)/Notarized copy of rent agreement/Leave & License agreement/ Sale Deed. NRI residing in Gulf countries and not having any of the above overseas address proof can give Declaration of P.O. Box in your residing country,
  3. Self-certified copy of Indian address proof, if any. Providing Indian address in KYC is voluntary. You may provide for your own benefit.
  4. Passport size photograph
  5. In case of an Indian Passport: Attested copy of valid passport with copy of Valid Visa
  6. In the case of Foreign Passport: Attested copy of valid passport, Copy of PIO/OCI card.
  7. Proof of Bank account (a cancelled cheque leaf of your NRO savings bank account)

Note 1 : Copy of PAN card, Passport, Power of Attorney and Foreign address proof are required to be attested. Attestation can be done by the Indian Embassy or any other competent authority like Consulate General or Notary Public or Overseas Banker or Indian Banker. The attesting authority should affix a “verified with original” stamp, name, designation, signature and date on the said documents.

Note 2 : Attestation is not required when your KRA status and IPV status is Y (Yes) and no change is required from your previous KRA. For checking your KRA status go to KYC inquiry menu on www.cvlkra.com

Can I convert my existing NRO Trading and Demat Account linked to NRO PIS Bank Account to Non-PIS NRO Trading Account?

Yes

Just send email to [email protected] to convert their NRO Trading and Demat Account to NON PIS Account.

You will trade like Indian Resident Account. Yes exactly like Resident Indian except two exception:

  1. Your account is subject to withholding tax
  2. You cannot do intra-day trades in equity segment.

You will add funds in your trading account just like resident Indian account and also withdraw funds. Funds withdrawal may take processing time of one working day to calculate withholding tax. You can add Equity Futures and Options also in same Trading Account by filling one pager Segment Activation Form and one pager Custodial Participant (CP) Code Application Form

NRO Account for Equity Delivery Trades :

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have many NRO Saving Bank Account with same Bank or many Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity trades like Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS).

You will also need to open NRO Saving Bank Account. You no longer required to open NRO Invest Account (similar account was earlier called NRO PIS Bank Account). ProStocks can assist you in opening your Bank Account. No PIS Bank Account required.

The dividend will be credited to your NRO Savings Bank Account ( Primary Bank Account, in case of more than one Bank Account) by the respective companies whose shares are held in your NRO Demat account on the record date for dividend.

You need to transfer funds from your NRO Savings Bank Account before buying. Once you buy, ProStocks will send you contract note same day and credit shares to your Demat Account on securities payout day. Generally you are expected to sell after shares credited to your Demat Account and not before. You can buy shares next day against credit to be received in your trading account on funds payout day of previous day's sale minus withholding tax liability, if any.

Similarly, when you sell the shares, ProStocks will send you contract note same day and credit your Trading Account with us on funds payout day. You can buy shares next day against credit to be received in your trading account on funds payout day of previous day's sale, minus withholding tax liability, if any. RBI reporting is not required for NRO Account after February 2016 but compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS) is required.

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 1k p.a (waived for account opened before 1st July, 2020) and you would be able to trade in equity segment just like Resident Indian. No Custody Account, No hassle of dealing with Custodian or PIS Banker besides Stock Broker. No PIS Bank Account required.

NRO Account for Equity Futures and Options (Derivatives) Trades

You will need to open NRO Saving Bank Account. ProStocks can assist you in opening your Bank Account.

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have many NRO Saving Bank Account with same Bank or many Banks and all can be mapped to your Trading Account for transferring funds to ProStocks. You can have NRO Savings bank Account in any Bank of your choice and there are no restrictions on the number of Bank-supported. You will operate your NRO Saving Bank Account for equity derivatives trades like Resident Indian. You can transfer funds to us any time, you can withdraw your funds from ProStocks any time with just one exception, compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to withholding tax (TDS).

ProStocks will do compliance of Section 195 of Indian Income Tax Act, 1965 for a fixed fee of Rs 4k p.a (waived for account opened before 1st July, 2020) and you would be able to trade in equity futures and options just like Resident Indian. No Custody Account, No hassle of dealing with Custodian besides Stock Broker.

You are no longer required to open custody or custodial account with ISSL or anyone when you do equity derivatives trades through ProStocks. Since you are not required to open Custody Account, you will save a significant amount, which was otherwise, you were required to pay to Custodian. ProStocks will take your CP code from the exchange which will allow you to trade equity derivatives at NSE as well as BSE.

WhatsApp support for NRI. Send opt in request using this link

SP Toshniwal

B50,  B Wing, 3rd Floor ,Pravasi Estate Goregaon Mulund Link Road

Goregaon East Mumbai 400063  +91-22-62 43 43 43 www.prostocks.com

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We are excited to announce that Prostocks now offer a truly commission-free investment in the stock market. With effect from 1st March 2020, we have introduced Zero Brokerage for the equity delivery segment. 

From now onwards, you invest in stocks for free without having to pay any brokerage fees. You continue to pay our low brokerage of flat ₹15 for intraday and F&O trades.

Delivery trades are those trades wherein, the shares you buy are delivered to you and deposited into your demat account. Once you take delivery of shares you can hold them as long as you want.

We have implemented zero brokerage in the equity delivery segment to encourage direct equity investments in the Indian stock market.

We hope you will enjoy this new exciting offer and continue spreading the word among your family, friends, and colleagues.

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  • How to protect your shares and mutual funds in Demat Account from Power of Attorney (PoA) holder?
  • How to Freeze and Unfreeze the holdings in Demat Account?
  • How to secure Demat Account even after giving PoA to Stock / Brokerages or Relatives?

This article requires you to register for the easiest facility of CDSL for your Demat Account . Please read our blog on how to register for easiest.

You can log in to your easiest account and use the option to Freeze holding for debit instruction. You can lock holding in your Demat Account in part or full or even part quantity of particular Scrip/ISIN. You may have given PoA to Stock Broker/Brokerage/Relatives, you can make sure that PoA given by you cannot be used for the period, which you may so desire, as ISIN can be frozen and you may unfreeze when you want to sale/transfer particular scrip and quantity. By this process, you can make PoA inactive for whatever period, you would like.

Login to easiest

Login To Easi/Easiest

For that go to CDSL’s website www.cdslindia.com then click on Login-New System My easi (BO/CM) under the Quick Links section. It will take you to the CDSL's Login page.

Login to the CDSL’s easi/easiest account, on the home page there is a menu bar where different options are available.

How to freeze and unfreeze holding?

In CDSL easiest account user will get an option of freeze or unfreeze holding. With this option, the user can freeze the shares in the account. This option is available in CDSL user login under the freeze menu.

CDSL freeze menu

To freeze the ISIN

  1. Go to the Freeze menu then select Setup & click on New Setup

  2. Then select the freeze type. (To freeze whole account select BO & to freeze one or more ISIN select BO-ISIN.) Then select the quantity type Full or Partial. ISIN can be freeze for Debit, Credit or Both. User can set for a Current Date as well as a Future Date

    Freeze New Setup

  3. After filling all the details click on save then the confirmation window will pop up click on OK

    Freeze Confirmation Window

  4. Then a verification window will open again click on ok

    Freeze Verification Window

  5. Then again go to Freeze menu -> Setup

    There you’ll see the holding for which you sent the freeze request

    Then select the holdings and click on commit and give approval

    Freeze List

    The user has the option to modify/delete only those freeze requests which have been set up by the user and which have not been verified by the user.

Unfreeze

Unfreeze option is also available under freeze menu. User can unfreeze only those requests which are currently in a frozen state.

UnFreeze Menu List

  1. Go to Freeze menu then click on Unfreeze & click on Unfreeze Setup

  2. Then select the transaction ID and click on Go to Unfreeze Commit , it will unfreeze the frozen holdings.

    UnFreeze List

    User can also print the acknowledgement copy of their freeze and unfreeze request, by going to Print Acknowledgement Copy in Freeze Menu

    Freeze Acknowledgement Copy

Additional Links:



S P Toshniwal
Founder and CEO
www.prostocks.com

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Stamp Duty on Transaction at Stock exchange and transfer through Depositories

The Government of India amended the Indian Stamp Act, 1899 through Finance Bill 2019 presented in the Parliament on 1st February 2019. Amended provisions were to be effective from the date of notification, to be issued in the official Gazette of India.

The Government of India has published a notification in the Official Gazette of India on 10th December 2019 making the amended provisions effective from 01st April 2020.

What is chargeable :

Sr.No

Item Description

Chargeability after 1st April 2020

Chargeability prior to 1st April 2020

1

All transactions executed at, as well as reported to the recognised Stock and Commodity Exchanges generally known as Contract Note transaction

Chargeable

Chargeable

2

Any transfer of securities for consideration through Depository other than 1 above, like issuance of shares and securities by the company, off-market buy and sell etc.

Chargeable

Not chargeable

3

Gifts, collaterals towards margin to stock-broker or to Banks or NBFC for borrowing, early pay-in shares etc (transfer for and return thereof) will not be liable for stamp duty

Not chargeable

Not chargeable

4

Bonus Shares, Split of shares etc without consideration

Not chargeable

Not chargeable

4

Government Securities

Not chargeable

Chargeable


What rate and Who, whom and When is liable to pay :

S

r No

Item Description

Rate of Stamp Duty

Who is liable to pay

Whom to Pay on behalf of state Govt

When is liable to pay

Old rates at Maharashtra

1

Equity Segment (Capital Market) Non delivery (intra-day) trades across Stock Exchanges except debentures and Govt Securities

0.003%

Buyer

Stock Exchange / CCs

On settlement

0.004% (0.002% each for buyer and seller)

2

Equity Segment (Capital Market) delivery trades across Stock Exchanges except for debentures and Govt Securities

0.015%

Buyer

Stock Exchange / CCs

On settlement as delivery and not closeout

0.02% (0.01% each for buyer and seller)

3

Equity and Commodity Futures

0.002%

Buyer

Stock Exchange / CCs

On settlement

0.004% (0.002% each for buyer and seller)

4

Equity and Commodity Options on premium value

0.003%

Buyer

Stock Exchange / CCs

On settlement

0.004% (0.002% each for buyer and seller)

5

Futures and Options on Currency and Interest rates

0.0001%

Buyer

Stock Exchange / CCs

On settlement

0.004% (0.002% each for buyer and seller)

6

Government Securities

Nil

NA

NA

NA

0.001% (0.0005% each by Buyer and Seller)

7

Issue of securities including debentures

0.005%

Issuer

Depository

At the time of credit to Depository

Nil

8

In case of Debenture reissue

0.0001%

Issuer

Depository

At the time of credit to Depository

Nil

9

In case of transfer of Debenture against off-market trade or delivery trades

0.0001%

Seller / Transferor

Depository

At the time of transfer

Nil

10

In case of transfer of Debenture pursuant to Trade at Stock Exchange (Delivery Trades)

0.0001%

Buyer

Stock Exchange / CCs

At the time of settlement

0.0005%

11

Open-offer, Buyback, Offer for Sell etc through Stock Exchange Platform

0.015%

Acquirer / Seller

Stock Exchange / CCs

On settlement as delivery and not closeout

0.02% (0.01% each for buyer and seller)

12

Transfer of any Equity and Equity related securities for consideration, made through depository, otherwise than on the basis of any transaction on Stock and Commodity Exchanges

 

0.015%

Seller / Transferor

Depository

At the time of transfer

Nil


S P Toshniwal

Founder and CEO

www.prostocks.com

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The Futures and Options Trading System, both equity derivatives and currency derivatives, provides a fully automated trading environment for screen-based, floor-less trading on a nationwide basis and an online monitoring and surveillance mechanism. The system supports an order driven market and provides complete transparency of trading operations.

Orders, as and when they are received at Exchange, are first time stamped and then immediately processed for potential match. If a match is not found, then the orders are stored in different 'books'. Orders are stored in price-time priority in various books in the following sequence:

  1. Best Price
  2. Within Price, by time priority.

Order Matching Rules

The best buy order will match with the best sell order. An order may match partially with another order resulting in multiple trades. For order matching, the best buy order is the one with highest price and the best sell order is the one with lowest price. This is because the computer views all buy orders available from the point of view of a seller and all sell orders from the point of view of the buyers in the market. So, of all buy orders available in the market at any point of time, a seller would obviously like to sell at the highest possible buy price that is offered. Hence, the best buy order is the order with highest price and vice-versa.

Members can pro actively enter orders in the system which will be displayed in the system till the full quantity is matched by one or more of counter-orders and result into trade(s). Alternatively members may be reactive and put in orders that match with existing orders in the system. Orders lying unmatched in the system are 'passive' orders and orders that come in to match the existing orders are called 'active' orders. Orders are always matched at the passive order price. This ensures that the earlier orders get priority over the orders that come in later.

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