Nri Investment issues?
I have been getting lots of mails from Nris all over the world – Australia, Bahrain, US, UK,…
not sure if there is a pattern..many of them want to invest in India and are wondering how?
If i were to address issues relating to Nri investors…what are the areas that YOU would want me to cover. Ask as simple to as complicated as a question (in a worst case scenarion, I will say I do not know :)).
So here is welcoming…queries regarding investments, taxation, borrowing, buying or selling a house, their parents’ financial safety, ….sounds cliched but planning to create a NRI special.
this idea came when a company asked me to make a trip to Dubai to SELL some life insurance and real estate projects….did not want to go…
Srikanth
Please talk about PFIC issue (for US investors) and FIRC issue (for all NRIs).
thanks,
Srikanth
Aditya Pednekar
Good day sir,
Thank you for opening up a forum for NRI’s & their queries. I have a few queries of my own & would highly appreciate if you could answer them.
Q.1 With regards to to NRI investments in India. what are the likely consequences of the DTC on investments & earnings ?
Q.2 I am working overseas for a few years now & plan to retire in India. Since we are not allowed to invest in guaranteed debt instruments like PPF , what would you suggest for Pension planning?
Thank you once again.
Regards
Aditya Pednekar
Dr. Ashok Jain
Thanks for such an informative blog.I ha.ve learned a lot from your writings
I am an NRI investing in stocks and mutual funds through ICICI DIRECT. It is a joint account. I was surprised to know that though trading account is in joint name and with proper nomination but all the mutual fund holdings which are substantial are only in single name. For the last three months I have been trying to register the nomination for MF holdings (as I was bluntly told these can not be in joint name) but every time it is being sent back with some new requirements. Please let all NRI account holders know that they should not assume that their MF holdings are in joint name or with nomination even though trading account is in joint name.
Thanks and regards,
Ashok Jain
I will seek your guidance.
Maulik Soni
Thankyou for such a wonderful blog and regular posting!
I am an NRI from last almost 9 years. After reading to your blog started investing in Equity Mutual Funds and recently came to know that my status was RI, trying to convert to NRI facing a lot of problems.
Kindly advice me and all reader about KYC, FATCA, Tax implication and all about NRI investment.
Abhishek
I’m a regular reader of your posts. I have a query and need your help on direction. Really appreciate your help here.
I’m NRI investor from Singapore. I have been investing in different Indian mutual funds recently (past 2 months) through MF utility website. I have been using NRE account (ICICI Bank NRE account) for investment. Recently when I was trying to redeem some units, I found out that there is requirement of FIRC Certificate (copy of Bank statement showing investment proof). If not provided them redemption will not be possible.
My question-
1) Is it required to provide FIRC certificate for each purchase of mutual funds made through NRE account? Let’s say I made several purchases for 20 years, when I redeem after 20 years, will there be any problem by AMC asking for investment proofs (which I may not have after so long).
2) I’m purchasing through MF Utility and not directly through AMC, I upload FIRC certificate (copy of Bank statement showing investment proof). I checked with MF Utility and they said they received the investment proof and same provided to respective AMCs, but then checked with ICICI Prudential mutual fund house and they said they have not received the investment proof and asked to submit at earliest else redemption will be a problem at later stage. How to ensure there is no issue during redemption.
3) for purchase of mutual funds units through MF utility, my payment goes to MF utility and not to AMC house. Investment proof shows MF utility in transaction and not AMC house name. Will it be rejected or questioned by AMC after 20 years during redemption. If MF utility do not exist that time, will there be any issue during redemption.
To avoid these issues and safeguard money invested, I was thinking should I start investing through NRO account to avoid this confusion on FIRC certificate ( investment proof)? The only problem is I would like to repatriate money at later stage, which is easier through NRE account.
Please help to advise.