Who are NRI?

• It expands to Non-Resident Indians.

• There are various definitions of being an NRI, i.e.,

1. an Indian resident who spent less than one hundred and eighty-two days in India during the previous fiscal period.

2. who has left India or is staying outside India to conduct business or pursue a career path,

3. who has left India or is remaining outside of India for the purpose of work,

4. who has left India or who is staying outside India for some other factor, suggesting that he intends to remain outside India for an indefinite duration.

• In basic terms, Indian living overseas are called to be NRIs.

What is an NRE account?

• It expands to Non-resident external account.

• An NRE account is opened by an Indian living abroad (NRI) under his/her name to deposit his foreign earnings.

• The foreign earnings are converted to Indian Rupee (INR).

• Savings, existing, recurring, and fixed deposit accounts are all options.

• In India, NRE accounts are mainly used for conducting business, personal banking, and build wealth.

• These accounts are not taxable.

• These accounts are very easy to use and can be managed anytime.

What are NRO accounts?

• It expands to Non-resident ordinary rupee accounts.

• An NRO accounts is opened by Indian living abroad (NROs) under his/her name to deposit their money earned by him/her in India.

• These accounts are taxable.

• You may open an NRO account with a resident Indian or even a non-resident Indian.

• Individuals can deposit money in both INR and foreign currency.

• There are no exchange rates involved.

• You may open an NRO account with a resident Indian or even a non-resident Indian.

• It is not prone to any sorts of risk.

Can NRIs invest in Indian Stock market?

NRIs are allowed and can invest their money in Indian stock market. To invest in the market, individuals need to have NRE/NRO accounts. These accounts must be opened with the reputed bank which has been authorized by the Reserve Bank of India for making share market contributions to the economy.

NRIs who made investments in India are termed as ‘Foreign Investments’. After taking the permissions from the bank, NRIs can make investments. They also need to add ‘Appointment of Mandate holder’ and ‘Power of attorney’, so that proper notarization can be done.

By doing these procedures, NRI can start investing in stock market.

Facts that are important to be remembered before investing:

• Individuals are not allowed to do intraday trading.

• Its important to read the rules and guidelines given by the Reserve bank of India so that no troubles and problems are faced by you.

• All the investments are to be made in Indian Rupee (INR).

• NRIs are licensed to trade in Indian equities and foreign exchange (F&O), but not in currency derivatives or services.

• To monitor and control your contributions to the Indian economy, appoint a power of attorney (POA).