Welcome to PRAGMATIC

Non-Resident Indian (NRI)' means a person resident outside India who is a citizen of India or is a person of Indian origin.

Categories of NRIs:
A person who has gone out of India or who stays outside India, in either case-

For or on taking up employment outside India,
For carrying on outside India a business or vocation outside India,
For any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period

A citizen of any country (other than a citizen of Bangladesh or Pakistan) is deemed to be a Person Of Indian Origin (PIO), if,

He, at any time, held an Indian passport,
He or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or Citizenship Act, 1955,
A spouse (not being a citizen of Bangladesh or Pakistan or Sri Lanka) of an Indian citizen or of a person of Indian origin is also deemed to be PIO.

The Overseas Citizenship of India (OCI) Scheme was introduced by amending the Citizenship Act, 1955 in August 2005. The Scheme provides for registration as Overseas Citizen of India (OCI) of all Persons of Indian Origin (PIOs) who were citizens of India on 26th January, 1950 or thereafter or were eligible to become citizens of India on 26th January, 1950 except who is or had been a citizen of Pakistan, Bangladesh or such other country as the Central Government may, by notification in the Official Gazette, specify.

India is a member of BRIC’s, and Growth potential of BRIC countries is much higher compared to developed countries.
India is still expected to have growth rate of at least 8% YOY, much higher than any developed country.
The key strength of the economy is huge Domestic consumption & not total dependence on Export. That makes India unique investment opportunity independent of economies in developed world.
Decline in Valuation of strong companies is much sharper then profitability of the companies which makes it attractive for mid to Long term investment. Attractive P/E valuation at current levels.
Advanced yet conservative and more controlled financial system result in Low risk & stable financial system.
Domestic saving ratio is more than 30% of the GDP means high savings habits.
Progressive policies of Indian Government towards NRI investments makes, it attractive investment opportunity especially for NRI community.
Repatriation of Money is much easier now than ever before

NRIs are allowed to invest in Indian stock market under the Portfolio Investment Scheme -through the secondary market.

Open a bank account with approved designated bank branch
Take approval of designated bank for investment in Indian Stock Market.
Open a Demat Account with a Pragmatic Equities (India) Pvt Ltd.
Open a Trading account with a SEBI registered broker to execute trades on your behalf on the Exchange

Daily Square Off is not allowed for NRI i.e. intraday trades are not allowed for NRI clients.
Clients can trade only on Delivery basis.
Every sale transactions will be credited to client Banks account Net of tax. Hence for every sale transaction capital gains will be calculated by a CA. As per current laws for long term capital gains, Tax rate is nil & for short-term capital gain tax rate is 15.45%.

NRI can invest in the following products with Pragmatic Wealth Management:

Investments in Equities through Secondary Market transactions
Investments in Equities through IPOs (Initial Public Offerings)
Portfolio Restructuring and Management advisory Services
Stocks Advisory services

An NRI should have a Bank Account (NRE/NRO or both) with a designated bank, which is approved by the RBI (Reserve Bank of India) for this purpose.
He / She should apply for a general approval for investment in the Indian Stock Market through his/her designated bank branch.
He / She should open a Demat Account with Pragmatic Equities (India) Pvt Ltd. to hold his / her shares and register with Pragmatic Equities (India) Pvt Ltd. to execute their buy / sell orders on the Stock Exchanges.

Any NRI / PIO can open two types of savings accounts with any bank in India. They are NRE and NRO bank accounts.

A NRE (Non-Resident External) Bank Account is a Rupee Saving Account for the Non-Resident Indians. Fund held in this account is in Rupee. This account needs to be funded from the NRI’s offshore money/fund. This is why it is known as Non-Resident External Account. Money held in this account can be invested in India as per RBI guidelines or used for expenses etc. The funds in this account & the income generated in this account are repatriable or it can be converted into any foreign currency at the behest of the account holder and can be remitted outside the country.

A NRO (Non-Resident Ordinary) Bank Account is a Rupee Savings Account for the Non-Resident Indians, just like the ordinary Saving Account of a Resident Indian. This is why it is known as Non-Resident Ordinary Account. This account may be funded form the NRI’s Indian Money / Indian Income / Indian Assets and also from NRI’s Foreign Money. Since it is as good as a normal saving bank account, money / Funds in this account (NRO account) cannot be taken outside the country (i.e. funds in this account are Non-Repatriable).

Yes, money can be freely transferred from the NRE account to the NRO account.

No, money cannot be transferred from NRO account to NRE account.

As per section 6(5) of FEMA, an NRI can continue to hold the securities, which he / she had purchased as a resident Indian, even after he / she has become a non-resident Indian, but has to transfer the shares to his / her NRO (Non Resident Ordinary) account.

Yes. NRI’s can subscribe to IPO without any permission. The issuing company is required to take specific or general permission from GOI / RBI.

No.

Investments in ETFs & Exchange Traded Debentures
Investment in IPOs (Initial Public Offerings)
Personal Expenses & Gifts to relatives or otherwise
Investment in Mutual Funds.

As per the regulations NRIs are allowed to invest up to a certain percentage of the total paid up capital of the company by directly subscribing to the equity/convertible debentures of the company either though a public offering made by the company or through private placements on one to one basis. Regulations provide for different ceilings on such investments based on the industry to which the company belongs and also the nature of investments (repatriation / non-repatriation basis).

No. Investments made by NRIs though subscription to Initial Public Offerings (IPO's) or Private placements are not covered by Portfolio Investment Scheme. Such investments are covered by RBI's regulations with regard to Foreign Direct Investments.

No. NRI’s can sell such shares / debentures on the Exchange without any approval. However, while seeking the credit of sale proceeds to NRE / NRO account, the bank should be provided with the details regarding date of allotment and cost of acquisition to calculate the taxes, if any.

An NRI / PIO needs to open a Demat account with Pragmatic Equities (India) Pvt Ltd

As per regulatory guidelines, Tax (if applicable) has to be deducted at source for all the profits done in the equity market transactions by NRIs. Before crediting sales proceeds it is the responsibility of the remitter to determine the appropriate Tax and deduct it at source.

TDS rate is different as per the tenure of the investment. It can be classified into:
Equities:
Long-term capital gain - If the period of holding is more than 1 year i.e. the difference between the date of purchase and sell is more than 1 year, then the TDS rate applicable is 0 %.
Short-term capital gain - If the period of holding is less than 1 year i.e. the difference between the date of purchase and sell is less than 1 year, then the TDS rate applicable is 15.45% on capital gain .

TDS is computed on the profit amount or the gain as per the applicable rate i.e. short term or long term. No TDS is charged on losses.

For any TDS to be deducted and money to be remitted to bank account, there are three things that have to be verified.

Amount of gain = Selling price - Purchase price
Duration of holding i.e. long term or short term = Selling date - Purchase date
Source of fund for purchase i.e. NRE or NRO

Important: TDS is deducted only at the time of crediting sales proceeds. This can be explained better with the following example:

TDS amount will be reflecting in your bank account statement & at the end of the year you will get the TDS certificates for all sales transaction taken place in last year.

List of Documents needed as proof to open the TRADING & DEMAT Accounts:

4 Copies of PAN Card
4 passport size photographs
4 Copies of Passport (along with VISA page & ADDRESS page)
Note: Passport or VISA should not expire within 6 months
4 Copies of OCI Card / PIO Card. Note: This document is required only if the NRI holds a FOREIGN PASSPORT with the PLACE OF BIRTH being OUTSIDE INDIA.
4 Copies of FOREIGN ADDRESS Proof Overseas Address Proof - Driving License/ Foreign passport /Utility Bills/Bank statement (not more than 2 months old)/Notarized copy of rent agreement/leave & license agreement/ Sale deed.
4 Copies of INDIAN ADDRESS Proof
1 Cancelled CHEQUE of the NRI (NRE/NRO) SAVINGS ACCOUNT
In case of Indian passport - Valid passport, Place of birth as India, Valid Visa – Work/Student/employment/resident permit etc.
In case of foreign passport: Valid passport and any of the following ,Place of Birth as India in foreign passport, Copy of PIO / OCI Card as applicable in case of PIO/OCI
Note: This is required for MICR code for the purpose of Dividend transfer through ECS.
Copy of PIS LETTER issued by the BANK

IMPORANT NOTE:

All Documents needs to be SELF ATTESTED & all should be in A4 size paper
All Documents (except the Cheque) needs to be either Attested (Verified) by the Indian Embassy / COUNSULATE or NOTARISED, Court, Magistrate, Judge or Attested by the LOCAL BANKER.