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NRI FAQs
07 October 2016
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I have NRO Bank account, what type of account I can open with ProStocks?

NRO Trading Account for Equity Futures and Options (derivatives) Trades :

NRIs are allowed to invest in futures & options segment of the exchange out of Rupee funds held in India on non-repatriation basis, subject to the limits prescribed by SEBI.

ProStocks will open your NRO Trading Account for Equity Future and Options.

ProStocks will map NRO Saving Bank Account with your NRO Trading Account. You can have multiple NRO Saving Bank Account with same Bank or multiple 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 similar to 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 12k per annum and would be able to trade in equity futures and options just like Resident Indian. No Custody Account, No hassle of dealing with Custodian as well as Stock Broker.

You are no longer required to open custody 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.

 

NRO Account with Bank of NRI for Equity Delivery Trades :

You will also need to open one more NRO Saving Bank Account, which is now called NRO Invest Account (similar account was earlier called NRO PIS Bank Account). ProStocks can assist you in opening your Bank Account.

ProStocks will map NRO Invest Bank Account (earlier NRO PIS Bank Account) with your NRO Trading Account and NRO Saving Bank Account with your NRO Demat Account.

Dividend will be credited to your NRO Savings Bank Account by the respective companies whose shares are held in your NRO Demat account on record date for dividend.

You need to keep balance in your NRO Invest Bank Account (do not transfer to ProStocks) for buying. Your NRO Invest banker will inform us balance of your NRO Invest Bank Account and ProStocks will provide you buy limit based on balance reported by your Bank. Once you buy, ProStocks will submit one copy of your Buy Contract Note to your Bank. Your NRO Invest Banker will debit your NRO Invest Bank Account and credit ProStocks bank account. Similarly, when you sell the shares, ProStocks will submit one copy of your Sell Contract Note to your NRO Invest Bank. Your NRO Invest Banker will debit ProStocks bank account and credit your PIS bank account minus tax liability if any. RBI reporting is not required for NRO Invest bank Account after February, 2016 however compliance of Section 195 of the Indian Income Tax Act, 1965 with regard to with-holding tax (TDS) is required.

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  • Ansh Gujral
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  • Guest - Vasu

    about 7 years ago

    This article is extremely misleading.. I am one of those who believed PIS is not necessary for opening a NRO Trading Account. If PIS is involved and mandatory why you make the field mandatory during online application process.. i am not happy with the process of online application..

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    Guest - Vasu
    about 7 years ago

    Can I open NRO Non PIS Trading and Demat Account ?
    Why NRO Non PIS Trading Account Brokerage is same or equal to NRE PIS Trading Account ?
    Does opening NRO PIS instead of NRE PIS make any sense ?

    Your investment in India through Stock Market are 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 the following THREE services besides usual banking Services :
    1. Applying to RBI and taking PIS (Portfolio Investment Scheme ) permission . This is one time activity. This is requirement under FEMA.
    2. Reporting all your transaction routed through PIS Bank Account to RBI on regular basis. This is 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 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 nutshell , Service Number 1 and 2 mentioned here in above are no longer required for NRO Account . However Service Number 3 is still applicable.

    Banks are willing to provide Service Number 3 as mentioned here in above for NRO Account however at same 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. Since Bank need to provide this service , Stock Broker need to follow the same procedure even for NRO Trading and Demat Account which they are following up for NRE Trading and Demat Account , hence your Brokerage remain same whether you open NRE Trading and Demat Account or NRO Trading and Demat Account .

    Technically, you do not need NRO PIS Account but practically you need NRO PIS Account or so called NRO Investment Account .

    In case NRO Account is opened just to save the cost of PIS Account however funds are brought in from abroad , it is advisable to open NRE PIS Account. If all cost remain same , there is no point is giving away repatriation rights and or benefit which comes with NRE Account .

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  • Guest - yashvant Joshi

    about 7 years ago

    we are now becme NRI and hence poened NRO acoout with Axis Bank. we are having existing demate account with local broker. Now for this demate account are we require to open pis account with said bank ? Our accounts are on Non Repatriation basis .pl. reply whether we require to open pis account? As per guide line the norms are relaxed for non repatriation basis and nro account is considered at par with resident account.so kindly advise on my mail id mentioned above.

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  • Team ProStocks

    about 7 years ago

    Can I open NRO Non PIS Trading and Demat Account ?
    Why NRO Non PIS Trading Account Brokerage is same or equal to NRE PIS Trading Account ?
    Does opening NRO PIS instead of NRE PIS make any sense ?

    Your investment in India through Stock Market are 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 the following THREE services besides usual banking Services :
    1. Applying to RBI and taking PIS (Portfolio Investment Scheme ) permission . This is one time activity. This is requirement under FEMA.
    2. Reporting all your transaction routed through PIS Bank Account to RBI on regular basis. This is 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 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 nutshell , Service Number 1 and 2 mentioned here in above are no longer required for NRO Account . However Service Number 3 is still applicable.

    Banks are willing to provide Service Number 3 as mentioned here in above for NRO Account however at same 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. Since Bank need to provide this service , Stock Broker need to follow the same procedure even for NRO Trading and Demat Account which they are following up for NRE Trading and Demat Account , hence your Brokerage remain same whether you open NRE Trading and Demat Account or NRO Trading and Demat Account .

    Technically, you do not need NRO PIS Account but practically you need NRO PIS Account or so called NRO Investment Account .

    In case NRO Account is opened just to save the cost of PIS Account however funds are brought in from abroad , it is advisable to open NRE PIS Account. If all cost remain same , there is no point is giving away repatriation rights and or benefit which comes with NRE Account .

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  • Guest - Girish

    about 6 years ago

    For NRI trading in F&O, as mentioned by you Custodian Participant code, CP code is required. You have also mentioned that Pro stocks has tie up with IIFL to avail this facility to her customer. In the list of banks mentioned by you HDFC bank is also there. HDFC bank was the first bank to be appointed as Custodian for NSE. If this is so why pro stocks suggests to take the service of IIFL to get CP code ? Please clarify.

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  • Team ProStocks

    about 6 years ago

    Mr Girish
    IIFL and ISSL are two different organisation. ISSL is ( Custodian as well as Professional Clearing Member ) and HDFC is not PCM. PCM is required to clear derivatives trades by Stock Broker. ISSl is our PCM , hence ISSL.

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  • Guest - sayee

    about 6 years ago

    What is the pis charges per contract note meaning. if i trade 5 different stocks in a day.. am i charged 500RS?

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  • Guest - Arun

    about 4 years ago

    Can I take intra day and delivery trades in Index futures and options like NIFTY and BANKNIFTY using NRO Non PIS Account?
    I understand that intra day and delivery trades are allowed in Equity and Equity F & O.

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  • Team ProStocks

    Guest - Arun
    about 4 years ago

    Yes, you can take Intraday and Delivery trades in Index futures and options using NRO Non PIS Account but we don't provide leverages in either of. And you can't trade in Intraday Cash Segment.

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  • Ansh Gujral

    about 3 years ago

    Can i pledge my equity shares with NRO-non PIS account to get margin for trading in F&O segment?

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