Derivative products have been introduced in a phased manner starting with Index Futures Contracts in June 2000. Index Options and Stoc Options were introduced in June 2001 and July 2001 followed by Stock Futures in November 2001.

Sectoral indices were permitted for de trading in December 2002. Interest Rate Futures on a notional bond and T-bill priced off ZCYC have been introduced in June 2003 and ex traded interest rate futures on a notional bond priced off a basket of Government Securities were permitted for trading in January 2004.

After an initial deposit has been paid in by you, we will update our database and activate your ID and you can log onto the site and commence trading. The margin money may be deposited in our account through the Internet (if you have opted for the Net Banking Facility ) or you may deposit money in our account in the regular manner, under intimation to us.

You will be given an exposure limit, which will depend on the margin deposited by you. It will be a dynamic online process visible to you on your terminal once the order has been placed. If there is any shortfall in the margin amount, the exact amount of shortfall will be displayed.

You may utilise the Net Banking Facility and immediately transfer the shortfall and execute the trade.

We will be offering trading facilities in scrips which are in compulsory demat for all investors. As of July 1, 2000 there are 583 companies that are compulsory demat for all investors.

E-broking is an internet enabled system that allows the user to buy and sell shares on the exchange directly. You can log into a site like 5paisa.com and execute trades on the exchange.

We offer facility to execute buy and sale transactions up to a calculated trading limit, defined as a multiple of cash amount deposited by you. After registration, you will be required to deposit a certain amount of initial margin deposit, which will be used to calculate your trading limits.

The deposit can be of any amount, but for ease of your trading operations, it should not be less than Rs.5000/-(Rupees five thousand only).

An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or the company has never issued equity to the public, it's known as an IPO. An IPO is also sometimes known as "going public." Technically, the offering to sell but virtually all IPOs result in all the stock offered being sold. IPOs are generally managed by companies that specialize handling IPOs and have experience in determining what the likely IPO offering price should be. If the IPO manager determines that the sto not sell at an offering price that is acceptable to the company, the application for an IPO is usually withdrawn until a better time. As soon as shares of an IPO have been sold, the stock is now tradable through stock exchanges or specialists that trade in the stock and the stock pr go up or down

Basis of Allotment or Basis of Allocation is a document publishes by registrar of an IPO to stock exchanges and IPO investors. This document provides information about final price fixed for an IPO, issue subscription (bidding) information or demand of an IPO and share allocation r IPO allotment information is categorized by number of shares applied by an applicant. For each such category detail bidding information is provided in this document including number of valid application received, total number of share applied, ratio of the allotment and number allocated to the applicants. Ratio of the allotment is a critical field for IPO's oversubscribed multiple times. This field tells how many Applica receive single lot of shares among a certain number of applicants. For example, ratio 1:8 means only one out of eight applicant received o shares; ratio value 'FIRM' means all the applicants are eligible to receive certain amount of share.

Committee Info. Public Issues: Draft Offer Documents filed with SEBI Public Issues: Red Herring Documents filed with ROC Public Issues Offer Documents filed with ROC Rights Issue: Draft Letters of Offer filed with SEBI Rights Issue: Final Letters of Offer filed with Stock Exchange

Steps are as follows:
􀂄 An NRI should open a new bank account with designated bank branch, 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 a Depository Participant to hold his shares.
􀂄 He needs to register with a broker to execute his buy/sell orders on the stock exchange(s)
􀂄 Officials of Central and State governments and Public Sector Undertakings deputed abroad on temporary assignments or pos Branch/Office (including diplomatic missions) abroad.

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.

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 banks.

No special permission is required. Holding securities in demat only constitutes change in form and does not need any special permission. However, only those physical securities which already have the status as NR - Repatriable / NR- Non-Repatriable can be dematerialized in the corresponding Depository Accounts.

No. An NRI must open separate demat accounts for holding -repatriable' and 'non-repatriable' securities.

As per section 6(5) of FEMA, 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, on a non-repatriable basis.

Yes. It is the responsibility of the NRI to inform the change of status to the designated bank branch, through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account.

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.

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.

No.

Reserve Bank has authorized a few branches of few banks to conduct the business under Portfolio Investment Scheme on behalf of NRIs. These branches are the main branches of major commercial banks. NRIs will have to route their applications through any of the designated bank branches that have authorization from Reserve Bank.

No. Each NRI has to select one branch for the purpose of investment under Portfolio Investment Scheme.

NRIs / PIOs can purchase / sell shares / convertible debentures of Indian companies on Stock Exchanges under the Portfolio Investment Scheme. The rules relating to this scheme are as given below:
(i) These trades can be done only through a registered broker on a recognized stock exchange.
(ii) NRI shall designate a branch of an authorized dealer and route all his/her transactions through this branch of the authorized dealer.
(iii) NRI takes delivery of the shares purchased and gives delivery of shares sold.
(iv) NRI shall abide by the directions given by RBI/SEBI or such authority if the transaction results in the breach of ceilings stipulated for NRI holding in the company/scheme.
The sale of shares will be subject to payment of applicable taxes.

The given below summarizes the permissions required for the off-market transfer:
From NRI to NRI for Sale or Gift transactions one will require General permission no specific permission to be taken Provided that the person to whom the shares are being transferred has obtained prior permission of Central Government to acquire the shares, if he has previous venture or tie up in India through investment in shares or debentures or a technical collaboration or a trade mark agreement or investment by whatever name called in the same field or allied filed in which the Indian company whose shares are being transferred is engaged.
From NRI to Resident Indian for Sale transaction RBI permission in form TS1 is required
From NRI to Resident Indian for Gift transaction one will require general permission, no specific permission to be taken
From Resident Indian to NRI for sale or gift transaction one will require Prior approval of Secretariat for Industrial Assistance, Government of India, followed by permission from RBI

Yes.

Yes. Reserve Bank permits NRIs? on application in form FNC 7, to purchase shares / debentures of existing Indian companies on non-repatriation basis. An undertaking about non-repatriation is to be given in form NRU

Yes. Authorized dealer have been permitted to grant loans/overdrafts abroad to NRIs through their overseas branches and correspondents against collateral of the shares/debentures of Indian companies held by them, provided the concerned shares/debentures were acquired on repatriation basis

1. Please log into IASL Trading Account with your User ID and Trading Password.
2. Check your limits before placing purchase order- Path to follow - Reports - Limit statement
3. Everyday we update your limit on the basis of your bank balance statement received from Axis Bank.
4. For any discrepancy please write mail to nri@indiaadvatage.co.in

1. Derivative Trading for NRIs is possible only through NRO Account i.e. on Non Repatriable basis.
2. If the NRI has already obtained unique code through some other broker, it should be used. In other words the code will be unique across exchange.
3. Up front Margin has to be collected from the client for M- TO -M.
4. When entering the orders broker have to use the code allotted by the Exchange.
5. NRI/broker has to ensure that the trades don't exceed the overall limits for NRIs as specified by the Exchange. Investment limits in derivative segment are also monitored at Exchange level. Penalty is charged by exchange in case of violations.

Portfolio Investment Scheme (PIS) is a scheme of the Reserve Bank of India (RBI) (defined in Schedule 3 of Foreign Exchange Management Act 2000) through which NRIs and 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

1. Fresh purchase from the secondary market as an NRI
2. Sale of shares, which were bought under PIS

1. Sale of shares, which were not bought under PIS, like Gifts, subscription to IPOs or shares bought as resident Indian, or received in bonus.
2. Fresh subscription for IPOs as an NRI
3. Investment in Mutual Funds.
These transactions need to be routed through NON PIS account.

PIS can be obtained only through one banker at a time.

Yes. If the NRI is already having a PIS account with some other bank, he has to close that account and provide the following documents to the new bank along with the application form:
1. NOC: No objection certificate is required from the previous bank stating that the client does not have any dues with them and the bank does not have any problem in his transferring the relationship to other bank. (It is not required for fresh PIS approval)
2. Previous approval letter: Bank X would have issued a PIS approval letter. This letter is required.
3. Details of the existing investments in the form on Annexure II and Annexure III.

For any transaction to be reported to PIS, contract note of the broker should reach PIS department within one working day following the day of transaction.

For any transaction to be reported to PIS, contract note of the broker should reach PIS department within one working day following the day of transaction.

Although these shares were purchased under PIS, but for B still these shares are received as gift, so B cannot sell these shares under PIS.

Investment can be made on repatriation as well as non-repatriation basis. However, an NRI will have to open NRE account as well as NRO account with designated bank branch as the sale proceeds of non-repatriation investment can only be credited to NRO account. If the customer is having any previous holdings, he needs to open NRO bank account as the sale proceeds of these investments will go to NRO account only.
The repatriation of the sale proceeds, net of taxes, are allowed if the original purchase was made on repatriation basis and such investments were ? made out of funds from NRE/FCNR account or by means of remittance from abroad.

TDS rate is different as per the tenure of the investment. It can be classified into:
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%. (Excluding Service Tax and Education cess)

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

An NRI can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be. For the purpose of this ceiling, investment under the Portfolio Investment Scheme on repatriation as well as non-repatriation basis will be clubbed together.
There is an overall ceiling of 10% of paid-up equity share capital of the company/paid-up value of each series of convertible debentures for purchase by all NRIs/OCBs put together. The overall ceiling can be raised if the company concerned passes a special resolution to that effect in its general body meeting.
While limits of individual holdings by NRIs/OCBs are monitored by the respective designated bank branch, RBI monitors the holding limits by NRIs/OCBs in aggregate. Once the aggregate holding of NRIs/OCBs builds up/ about to build up to the maximum prescribed ceiling, RBI puts the concerned stock under the Restrict List/Watch List which is published by RBI from time to time.

A Overseas Corporate Body (OCB) means a company, partnership firm, society and other corporate body owned directly or indirectly to the extent of at least sixty percent by Non-Resident Indians and includes overseas trust in which not less than sixty percent beneficial interest is held by Non-Resident Indians directly or indirectly but irrevocably. OCBs were debarred from Portfolio Investment Scheme w.e.f November 29, 2001. OCBs have been banned as a class of investor w.e.f September 16, 2003. However, they have been permitted to continue to hold the securities acquired by them prior to these dates. Accordingly OCBs may open a demat account, however it can be only for the purpose of dematerializing the existing holdings.
Reference: FAQs hosted on RBI Website www.rbi.org under the head "Chapter III - Investments in Securities /shares and company deposits.