KJMC CAPITAL MARKET SERVCIES OVERVIEW

An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. (Persons posted in U.N. Organizations and Officials deputed abroad by Central/State Governments and Public Sector undertakings on temporary assignments are also treated as non-residents). Non –Resident foreign citizens of Indian Origin are treated on par with non-resident Indian Citizens (NRIs) for the purpose of certain facilities. Main categories of NRIs The following are the main three categories of NRIs : - Indian citizens working abroad on assignment with foreign government agencies like United Nations Organization (UNO), including its affiliates, International Monetary Fund (IMF), World Bank etc. Indian citizens who stay abroad for employment or for carrying on a business or Vocation or any other purpose in circumstances indicating an indefinite period of stay abroad. Indian citizens working abroad on assignment with foreign government agencies like United Nations Organization (UNO), including its affiliates, International Monetary Fund (IMF), World Bank etc. Officials of Central and State Government and Public Sector undertaking deputed abroad on temporary assignments or posted to their offices, including Indian diplomat missions, abroad. Types of NRI bank Account NRE bank account is an external saving bank account opened for Non resident Indians. This is why it is known as Non-Resident External account. Since it is an external account, any monies lying in NRE account can be taken outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country. A NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. Since the funds, standing to the credit of this account, cannot be repatriated outside India in foreign exchange, without prior permission of the Reserve Bank of India. Interest, earned on these accounts, is, however, eligible for repatriation outside India, net of Indian taxes. Process to invest in INDIA Bank Account PIS Account Demat Account Trading Account NRI Investments NRI Individuals can invest Jointly On either or survivor basis On first or survivor basis NRI can also invest through Power of Attorney (POA) POA to be notarized Clause empowering the POA holder to invest in securities on behalf of the NRI Duly attested photocopy of the POA to accompany application form POA cannot nominate on behalf of the NRI The Power of Attorney holder in India cannot open the account. Equity trading on BSE and NSE through KJMC Capital Market Services Ltd. Derivatives trading on NSE through KJMC Capital Market Services Ltd. NRI can invest from his NRE as well as from his NRO funds. It is mandatory for NRI to open a Portfolio Investment Scheme (PIS) account through any RBI accepted designated bank In case, you already have a PIS account, you can link the same to the trading and demat account opened through us. At the end of the day, the trades are reported to the respective designated bank, which is turn reports the same to RBI. NRI Investments are classified on the following basis: Repatriability Repatriable : Repatriable funds (i.e. those which can be taken abroad) need to be kept in a separate bank account, i.e. NRE Bank account. Typically, funds brought in from abroad are permitted in such an account. Investments made from such funds can be repatriated, i.e. proceeds from sale or otherwise from such investments can be taken abroad. Such investments are maintained in a Repatriable Demat account. Non-Repatriable Non-repatriable funds (i.e. those which cannot be taken abroad) need to be kept separate from repatriable funds in a separate bank account i.e. NRO Bank account. Investments made from such funds cannot be repatriated, i.e. proceeds from sale or otherwise from such investments cannot be taken abroad. Such investments are maintained in a Non-Repatriable Demat account. Money once transferred from NRE account to NRO account loses its repatriability and hence, cannot be transferred back to NRE account. Mode of investment: Portfolio Investment Scheme (PIS) Non - PIS Requirement to Open a Demat Account PIS account Passport Copy (Photocopy) Visa Copy (The visa could be either in the passport or given separately) Cheque leaves and Bank Statement compulsory/Banker’s verification. Signature Verification PAN card (Mandatory) Proof of local and foreign address Requirement to open NRI Broking Account Passport copy for proof of address Visa Copy (In case the place of issue of passport is India) PIS Permission /RBI Approval Demat Proof Stamp Paper to be signed by the client Photograph signed across POA (Power of attorney) – if required by the client & notarized from abroad Authority Letter – (If authority given by the client) Photo of person authorized Passport copy for proof of address Letter signed by authorized person PAN card. (Mandatory) Details of NRE / NRO account opened with banks and Banker Verification Purchase Details of Stock Holding, if any Letter from current employer (if applicable) What does KJMC offers PIS approval Equity : - All investment needs fulfilled from our NRI Desk. Broking service to invest in securities. Banking service. Share depository service. F&O : - Investment in F&O segment through NRO A/c. Debt : - Invest in Money Market. IPO : - Apply for IPOs. Mutual Fund (Leading Fund House scheme)  : - NRI can invest by giving us a request letter with exact details of amount to be invested, scheme, etc. Investment in mutual funds can be made without any prior permission from RBI on Non Repatriable basis. Tax Advisory : - Our associate firm (Khandelwal Jain & co.) takes care of your taxation issues like capital gain tax calculation or tax advisory etc. NRI FAQs Who is an NRI? An NRI is an Indian citizen who stays outside India For purposes of carrying out employment or any business or vocation. Under circumstances indicating an intention to stay outside India for an uncertain duration. Any Indian citizen deputed outside India for a temporary period in connection with employment. An NRI includes -NRE (Non Resident Emigrant) and NRO (Non Resident Ordinary) Who is a PIO? PIO is a Person of Indian Origin. A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if He/ she at any time held an Indian passport; or He/ she or either of his/ her parents or any of his/ her grandparents was a citizen of India; or Spouse (not being a citizen of Bangladesh or Pakistan) of an Indian citizen or (a) or (b) above What is a NRE account? NRE bank account is an external saving bank account opened for Non resident Indians. This is why it is known as Non-Resident External account. Since it is an external account, any monies lying in NRE account can be taken outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country. What is a NRO account? NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account, monies lying in NRO account cannot be taken outside the country or in other words, the monies lying in NRO account are not repatriable. What is PIS? 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 on a recognized stock exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank Branch. How many PIS account can a NRI open? NRI/PIO can open only one PIS account with any designated banks in a prescribed format for PIS account, upon which the bank can issue a PIS approval letter to the investor. What is Non PIS? Any investment other than under PIS is Typically, this includes Subscription to Primary market offerings (IPOs) Investments made when resident in India. Investments in Mutual funds Investments in derivatives Gifts and Inheritance Can money be transferred from NRE account to NRO account? Yes money can be freely transferred from NRE account to NRO account. Can money be transferred from NRO account to NRE account? No, money cannot be transferred from NRO account to NRE account. What is the status of NRO/NRE accounts on the return of the account holder to India? RBI has advised banks to re-designate such accounts as resident accounts on return of the account holder to India. What are the products offered for trading to NRI from KJMC Capital Market Services? NRI can invest in the following products. Equity trading on BSE and NSE Derivatives trading on the NSE IPO online Portfolio Management Who is eligible for opening an NRI account? All non-residents Indian (NRI), except minors residing in Gulf Co-operation Council (GCC) countries of United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar are eligible to avail of this service. What is the difference between a NRE and a NRO account? NRE account is repatriable whereas a NRO account is non repatriable. What type of saving bank account(s) can be opened by an NRI or PIO in India? Any NRI/PIO can open two types of savings accounts with any bank in India. They are NRE and NRO bank accounts. Does an NRI need any RBI permission to open a demat account? No permission is required from RBI to open a demat account. However, credits and debits from demat account may require general or specific permissions as the case may be, from designated authorized dealers What steps an NRI needs to take to start investing in the Indian Stock Market? An NRI should open a new bank account (NRE/NRO or both) with designated bank which is approved by RBI (Reserve Bank of India) for this purpose. He should apply for a general approval for investment in Indian Stock Market through his designated bank branch. He should open a Demat Account with KJMC Capital Market Services Ltd to hold his shares and register with KJMC Capital Market Services Ltd to execute his buy/sell orders on the stock exchanges. Where can an NRI/PIO open a demat account? NRI/PIO can open a demat account with any Depository Participant [DP] of NSDL. The NRI/PIO needs to mention the type ['NRI' as compared to 'Resident'] and the sub-type ['Repatriable' or 'Non-Repatriable'] in the account opening form collected from the DP. Can securities purchased under repatriable and non-repatriable category be held in a single demat account? No. An NRI must open separate demat accounts for holding 'repatriable' and 'non-repatriable' securities . Does an NRI require any permission to receive bonus/rights shares? No. Can an NRI nominate or be nominated in depository account? Whether such nominee can be person resident in India? Yes. On which exchanges can I buy/sell shares? As a customer you can trade on both NSE and BSE. Can I undertake intra day transactions? NRI customers are authorized to take delivery of shares only. They cannot do intraday trading owing to restrictions imposed by RBI/SEBI. In the case of Privileged NRI Account; you could trade in Derivatives subject to approval from relevant authorities. Can NRIs invest in shares, debentures and units of Mutual Funds in India? NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund. They are also permitted to make portfolio investments i.e. purchase of share / debentures of Indian Companies through stock exchange. These facilities are granted both on repatriation and non-repatriation basis. Can NRIs subscribe to public issues? What are the permissions/approvals required? Yes. The issuing company is required to issue shares to NRI on the basis of specific or general permission from GOI/RBI. Therefore, individual NRI need not obtain any permission. Any NRI or a PIO wanting to trade/make fresh investments in the Indian Equity Secondary Market needs and must have one PIS account with only one designated bank in India. Notes: PIS account is applicable only for NRIs and not for resident Indians. It is only for trading in Indian markets and not any other foreign markets. It is applicable only for equity trades and not MF investments Can I get confirmation of Orders that I place Online? Yes, you can check the status of your orders after you have placed them. All you need to do is click on Check Order Status. In case your order is open, it can be modified and in such a case, the column under status will show Open. A click on Check Trade Status will show you all those trades that have been executed. What is a contract note? A Contract note is a statement showing the confirmation of trade(s) done on a particular day for and on behalf of a client. A contract note establishes a legally enforceable relationship between the member and client in respect of the trades stated in that contract note. As a customer of KJMC Capital Market Services Ltd we will also send you digitally Contract notes on your mail id. What is the status of NRO/NRE accounts on the return of the account holder to India? RBI has advised banks to re-designate such accounts as resident accounts on return of the account holder to India What is TDS? As per regulatory guidelines, Tax (if applicable) has to be deducted at source for all the profits done in the equity market transactions. Before crediting sales proceeds it is the responsibility of the broker and the PIS cell to determine the appropriate Tax and deduct it at source. How is TDS computed? TDS is computed on the profit amount or the gain as per the applicable rate i.e. short term or long term on a First-In, First-Out (FIFO) basis.