NRI Investment in India and R2I Financial Concerns

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sunilUpa
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Postby sunilUpa » 08 Nov 2007 00:12

Suraj wrote:The USD situation is looking increasingly precarious now, IMHO. Gold is up. Silver is up. Commodities/oil are up. I don't envision an apocalyptic global crash, but the USD is no longer something I have much faith in. There are a lot of US based NRI folks on here who would benefit from diversifying out of the dollar, into Rupees, amongst others, particularly those in their 40s or later who would lose a lot of retirement income. I'd like to start a renewed discussion on the options available:

* What options to NRIs (US and otherwise) have to invest in the Indian equity market directly, not via US MFs or ADRs/GDRs ?
* Note that direct investment in Indian funds triggers US PFIC (passive foreign investment company) tax rules. What are folks' experiences dealing with this.
* What are the options to purchase and hold gold ? Not just physically but any means.
* Recommendations on foreign currency ETFs or accounts.
* Anything else


I have received a writeup from Kotak securities on how to open a NRE linked dmat account and other rules/regulations on Trading for NRIs. Those who are interested send me an email to svandse at actavis dot com, I will forward the same.

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Postby pradeepe » 08 Nov 2007 01:14

Suraj wrote:* What options to NRIs (US and otherwise) have to invest in the Indian equity market directly, not via US MFs or ADRs/GDRs ?
* Note that direct investment in Indian funds triggers US PFIC (passive foreign investment company) tax rules. What are folks' experiences dealing with this.
* What are the options to purchase and hold gold ? Not just physically but any means.
* Recommendations on foreign currency ETFs or accounts.
* Anything else


This would be an interesting discussion. What have folks done in general.
FWIW: I have over the last 6-7 years being pushing most savings from massa land into India. Not much thought went behind it other than a firm determination that one day I would end up back in India. Of course that hasnt happened yet, but in a way, it ties me ever more tightly to that path now. I guess IRAs are doomed. Only way to counter it is to actively manage IRAs to ensure you overcome the USD decline and inflation by a significant margin. Maybe easier said than done, but many just opt for very safe/default options - many companies in Massa offer pretty decent options to manage for all risk profiles.

As for investment into the Indian equity market, one way would be to invest directly through your folks in their name. It might be a problem for some. Not so in my case, so I have gone that route.

Gold too was an investment (you can buy this directly in India in many places - better if you have a place you know and trust). Buy and hold in a safe deposit box. I have had friends buy gold through Apmex. You can have it shipped to you or for a small fee have them hold it.
Apmex

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Postby sunilUpa » 28 Nov 2007 07:07

Guys,
NRIs in masa land can not legally trade stocks in India 'electronically', i.e legally any Indian exchange/broker can not offer NRIs in MASA land electronic Demat account. But you can have a broker execute your orders and you may fund these by your NRE account.

Now before you blow a fuse and curse GoI, it is SEC which is screwing you. Due to SEC regulation, no foreighn exchange can offer electronic trading facility to any US person...

Here is a link to SEC Directors speech link

I am trying to find a way arround this (other than have your family for opening an demat account and trade, not viable option for me due to tax issues). Will keep you guys posted.

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Postby Bade » 28 Nov 2007 07:17

What about NRIs who become OCIs and return back to work in India as US citizens. How do they do it ?

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Postby sunilUpa » 28 Nov 2007 07:22

Guys,
NRIs in masa land can not legally trade stocks in India 'electronically', i.e legally any Indian exchange/broker can not offer NRIs in MASA land electronic Demat account. But you can have a broker execute your orders and you may fund these by your NRE account.

Now before you blow a fuse and curse GoI, it is SEC which is screwing you. Due to SEC regulation, no foreighn exchange can offer electronic trading facility to any US person...

Here is a link to SEC Directors speech link

I am trying to find a way arround this (other than have your family for opening an demat account and trade, not viable option for me due to tax issues). Will keep you guys posted.

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Postby Laks » 29 Nov 2007 07:59

http://www.telegraphindia.com/1071129/a ... 605782.asp
[quote]ou don’t need a sackful of cash to get a personal wealth manager.

Reliance Money, the financial services arm of Reliance Capital, is planning to lower the threshold in portfolio management by offering the service to anyone who can stump up Rs 5 lakh.

In a professional portfolio management service (PMS), the portfolio manager offers to create a basket of stocks, bonds or even mutual funds that will fit your personal investment goals and risk preferences. Although the Securities and Exchange Board of India, the capital market regulator, has lowered the PMS threshold to Rs 5 lakh, most players tend to offer their services only to those who can come up with at least Rs 25 lakh.

“We want to move PMS from a high net worth individual’s play to almost anyone and everyone who has Rs 5 lakh but doesn’t have the time or the technical knowledge to play the markets,â€

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Philanthropy in India is new mantra of NRIs

Postby Rudranathh » 16 Jan 2008 11:18

Philanthropy in India is new mantra of NRIs

Wed, Jan 16 10:46 AM

New Delhi, Jan 16 - Adopting a village in rural Punjab or building houses for the impoverished in the hinterlands of India - a new philanthropic mantra has fired the imagination of Indians living abroad, says Harinder Takhar, the first Indian origin minister in Canada's biggest province Ontario.

'NRIs are now really interested in doing something more meaningful and lasting for the country they left behind,' Takhar, the minister of small business and entrepreneurship in Ontario, told in an interview here.

'NRIs can contribute in a positive way to the socio-economic transformation of India. We are now thinking in terms of giving concrete shape to some of these ideas like adopting a village or building schools,' said Takhar, who had come here to attend the sixth conclave of overseas Indians last week.

'The Punjab government has come out with many ideas and suggestions like building schools, hospitals or gurdwaras in a 50-50 partnership. We are open to these ideas,' he said.

Takhar, a 50-something businessman who migrated to Canada from Punjab in the early 1970s, is, however, not in favour of centralised funds to channelise the philanthropic impulse of Indians abroad.

'Large centralised funds entail huge administrative costs. Moreover, we are not sure whether money is being used for intended beneficiaries,' said Takhar, who also served as a minister of transport in the Ontario government.

'If it is done individually, they (contributors) can relate to these projects better. They can see the change happening with their own eyes,' he said.

Takhar is impressed by the winds of change sweeping the country he left behind and the transformation in its image as a rising power in the world.

'India is on way to becoming an economic power and is seen increasingly as an economic giant with its economy growing at around 10 percent every year. The world is now realising that India is the place to be in.

'For NRIs, it's a big moment. There is a resurgent pride in India and all things Indian.'

Economic ties between India and Canada, however, remain much below potential with bilateral trade at just about $4 billion, Takhar said, stressing that both the countries need to do more to cash in on new opportunities.

'We need to promote Canada as a top investment destination. It has a conducive business environment and is home to world-class companies. Some of the big Indian companies like Tatas, Aditya Birla Group and Ranbaxy are already there,' he said.

'What stands in the way is the lack of sufficient information about opportunities in both the countries. We need to make Canadian companies more aware of the huge opportunities in India,' he said.

Takhar also made a strong pitch for the entry of Canadian carmakers in India's burgeoning automobile sector.

Ontario is the leader in the automobile sector in North America, but a downturn in the US economy has hit this sector in Canada, with car manufacturers announcing job cuts. The Indian market is becoming more attractive to Canadian companies, he said.

An invitation to attend the Pravasi Bharatiya Divas, as the jamboree of overseas Indians is called, is a chance to go back to the roots and replenish old values that sustain the spectacular success of overseas Indians in their adopted countries, he said.

'NRIs are extremely hardworking and passionate about what they are doing. They want to pay back and make a lasting contribution to the country they left behind years ago,' he said.

'Functions like Pravasi Divas help promote an active dialogue between the diaspora and India. It gives NRIs a sense of what is happening in India and what the government is trying to achieve.

'Indians abroad can bring their skills and expertise to benefit India,' he added.

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Postby Kakkaji » 16 Feb 2008 02:26

Guru Log:

I need some advice.

I am looking for a good index mutual fund in India for a resident Indian to invest in. The investment will be in small amounts (Rs 5,000 at a time) to gradually build a portfolio for old age. After some web search, I zeroed in on the following 2 index funds that track the S&P CNX Nifty Index:

1. Nifty BeES from Benchmark Asset Management
2. UTI Nifty Index Fund-G

They both have no/ low entry and exit fees, and both seem to track the Nifty Index quite closely. The Nifty BeES seems to be better in that it has no exit fees as the UTI fund does, has low expense ratio (0.8%), and is an ETF, so the buying and selling should be easier.

Am I on the right track, or are there better options out there?

I know the UTI, but how reputable is this company Benchmark Asset Management?

What are the easiest/ cheapest ways for small investors to buy mutual fund shares? What are typical transaction costs? How do you buy UTI funds nowadays?

Any advice will be appreciated. This is for a relative in India who is a simpleton. I want him to be able to steadily build a portfolio for his old age, through regular investments, without being devoured by the sharks along the way.

Thanks in Advance

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Postby Sanjay M » 16 Feb 2008 03:14

I understand that everybody wants a shortcut to a better life, but I don't understand India's constant doting on NRIs for investment. Hey, set up and sustain a credible business environment, and the whole world will be glad to beat a path to your door. The fact that one is always counting on getting money from "relatives" is a sign of poor thinking and values.

Why would NRI money be better than anyone else's? The colour of money is the same regardless -- green.

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Re: NRI Investment in India

Postby Kartman » 16 Sep 2008 13:41

up !

birathers... pls post all investment related discussions (both yen-aar-eye or otherwise) here, from now on

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Re: NRI Investment in India

Postby AshokS » 16 Sep 2008 16:17

Vina / Durvasa / (any other desi banker) -

I am posting this here at the suggestion of Suraj.

I need to get better connected with the Indian PE scene. What are good groups, forums, or sites for PE investors or i-banking in India? Specifically I am looking to do deals in India with primarily public companies looking for convertible debt (range from upto $30 mm per deal). You guys seem well connected, thought I would ask. I have asked a few India based i-banking friends, but still trying to get into the deal flow. Email me at skm DOT pave AT gmail DOT com.

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Re: NRI Investment in India

Postby vina » 16 Sep 2008 17:11

Cross posting.

AshokS wrote:Vina / Suraj -

I need to get better connected with the Indian PE scene. What are good groups, forums, or sites for PE investors or i-banking in India? Specifically I am looking to do deals in India with primarily public companies looking for convertible debt (range from upto $30 mm per deal). You guys seem well connected, thought I would ask. I have asked a few India based i-banking friends, but still trying to get into the deal flow. Email me at skm DOT pave AT gmail DOT com.


Ashok Saar. Me on inbeshment banker in India. Me honest abdul in the Karporate Strategy /Development side onree, enjoying peace and quiet and the stress free life in salubrious Bengalooru . I-Bank/ consulting/vonsulting ka tension nahin lene ka , humko. Now phamily man onree. :(( :((

I have no contacts with the i-Banks (and actually wont be allowed to as that would violate company policy,since I would have operations and stock and market relevant info) and private equity houses. I dont get to speak with the i-Banks and PE houses and dont get my hands dirty with deal execution. I get to see the deal flow from evaluation, vetting , strategic fit , synergy yada yada angles and ask questions to the folks who interface with i-banks/media/journos etc and they get back with answers.

In fact, I got a pitch from Lehman passed to me last week about an opportunity in a certain space, and I laughed to myself and said that I will look at it if Lehman lasts 2 weeks. It didn't :shock: , so didnt even have to take the trouble to respond to that e-mail pitch presentation :lol: :lol: .

My comments are based on macro scene and just spectator watching the game being played.. all my playing in the markets is on personal side onree.

Sorry, couldnt be of help.

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Re: NRI Investment in India

Postby Sanjay M » 18 Sep 2008 02:32

September 12, 2008, 9:33AM EST

New Delhi Eases Property Investment by Overseas Indians

New Delhi has amended guidelines to make it easier for non-resident Indians to purchase real estate in the country

by Rajat Guha and Partha Ghosh


There's good news for the people of Indian origin (PIO). The government is planning to allow them to buy property in India without mandatory RBI approval and without the hassles of producing a valid visa.

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Re: NRI Investment in India

Postby andy B » 18 Sep 2008 05:35

Just started building up my portfolio through me Dad. Its quite good for the TDREs outside India. My dad has paid off my education loan that I took from da Bank. So now I send money every now and then to be put into stocks and they are bought in me old man's name. Any increase in value or returns that are made over a period of time are given to me Dad as pmt for my edu loan that he paid off.

So far the darn things worth is quite nominal (Rs 5 lakh)..... :evil: Hopefully should be able to build it up to a decent value in the the next couple of years.... :twisted:

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Re: NRI Investment in India

Postby Vipul » 10 Oct 2008 19:10

Global Indians: There’s no stopping them.

Question: Where in the world would you find the highest number of ‘People of Indian Origin’? Give yourself a few minutes to make a good guess.

Answer: Myanmar. Not less than 2.5 million ethnic Indians live there.

To most, this information will come as a surprise, though it should not, given the proximity and historical connections between India and Myanmar. But statistics about Indians abroad are full of such eye-poppers.

A dozen years ago, Singapore was the scene of a conference meant for networking of non-resident Indians.

They then called it Global Indian Enterpreneurs Conference, (which probably set the stage for what has now become an annual affair, the Pravasi Bharatiya Divas.) This journalist recalls a conversation with Khushwant Singh, in which the celebrated writer wondered with a hearty chuckle “how much these Indians (present at the conference) are worth”. He guessed it would be in the region of over $200 billion.

That was back in 1996, when people like Mr Lakshmi Mittal were yet to attain the iconic status that they have today.

The setting up of the Ministry of Overseas Indian Affairs was eight years away.The IT revolution was still in its incipient stages. Internet was an intrigue.

Today, there are far more Indians living abroad. The latest estimate is 25 million, bigger than the population of Australia or Canada. (Today, nobody cribs about ‘brain drain’). We often recall their immense contribution to India – it is such a feel-good doing so – but truly what they have put on the table of their host countries is also enormous, contributing positively to every measure of growth, except, as Ambassador Ronen Sen has pointed out, crime rate.

Roughly 3 million Indians (same as the population of New Zealand) live in the North American continent and their median income is estimated at $67,000 – well above the regional average and something that will make Khushwant Singh re-work his estimate.

What these global Indians have done to India is immeasurable.At the very least, they send money home – $27 billion in 2007, according to the World Bank – financially empowering their families.

Reference is often made to China as a recipient of great help from its overseas nationals. But more than China, Taiwan has derived greater benefit from its diaspora.The Taiwanese government used to write letters to the prominent members of its diaspora to come back home and help in nation building.

It is only wise to make better use of the resources of overseas abroad. The Pravasi Bharatiya Divas is held annually, not only as a means of networking overseas Indians but also to ‘take care of them’ (as the Ministry of Overseas Indians puts it.)

Usually, the PBD is held in January, but 2008 is a little different. The ‘PBD Singapore,’ slated to be held for three days from October 9, will be a regional variant.The objective, according to the organisers, is to promote an event with a difference, which will be in tune with the City State’s efforts to remain “an economic hub” in the Asia-Pacific zone.

The prime mover is the Singapore Indian Chamber of Commerce & Industry (SICCI). While the Confederation of Indian Industry has joined hands with the SICCI, the governments of Singapore and India have extended “full and active support,” according to Mr Sat Pal Khattar, Chairman of the ‘PBD Singapore’ steering committee.

So, the NRIs are congregating in Singapore after 12 years. Back in 1996, Sam Pitroda noted that the personal sacrifices one needed to make to work in India were indeed huge, but the personal satisfaction you got out of it was bigger.
Have things gotten better? We will probably have some clue on this on October 10.

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Re: NRI Investment in India

Postby Raj » 08 Apr 2009 03:49

Attractive rates draw NRIs to park funds in Indian banks
Attractive interest rates offered by Indian banks at the time of global financial market meltdown, along with a sense of insecurity among non-resident Indian (NRI) investors, have resulted in NRI deposits of banks witnessing a sharp rise in April-December 2008 period.
According to recent Reserve Bank of India (RBI) data, the net inflow of NRI deposits during the first nine months of 2008-09 stood at $2,115 million, against a net outflow of $931 million in the corresponding period a year ago.

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Re: NRI Investment in India

Postby Jamal K. Malik » 25 Jun 2009 21:48



Suraj
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Re: NRI Investment in India and R2I Financial Concerns

Postby Suraj » 13 Jan 2010 11:51

Bump.

This thread has been renamed to add R2I issues. It is intended to specifically to serve those residing outside India, who wish to invest in India, want to transfer financial assets to India, or plan to move back to India and want to discuss logistics.

Note that there is a very good forum called R2I club forums, with far more extensive discussions on R2I and related issues. Those planning to R2I will probably want to spend a considerable amount of time reading articles/discussions there in detail.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Neshant » 13 Jan 2010 13:06

Answer: Myanmar. Not less than 2.5 million ethnic Indians live there.


i think most of them are muslim bangladeshis but fear labelling themselves as such because the burmese govt might deport them back to Bangladesh.

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Re: NRI Investment in India and R2I Financial Concerns

Postby SwamyG » 13 Jan 2010 22:35

archan wrote:Folks, do any of you invest money in desh? I have been putting my savings in ING Orange savings for 5+ years and there was a time they were giving me > 4% interest. Now it has dropped down to 1.2 and I don't see it going up anytime soon (even though I am illiterate in economics). In fact it is still dropping. At this rate they will soon be charging me for keeping my money safe! :eek: What is the scene back home? is it worth it to convert USD to INR and make a fixed deposit there? we are only talking a few thousand USD here, not a few hundred thousand!


If it is just few thousand, don't even bother. Just grind your teeth. I was going to say the online banks give better rate of interest than the brick-mortar banks, but you already have an account with ING. Since you talk about investment, I assume you already have the liquidity for 4-6 months for living expense. Stocks are one way to go. You can buy ETFs that cover India or any other favorite country. One example is EPI - a Wisdom Tree Index. The other option is ladder your CDs.

If you are planning to R2I, buy some good plots in a safe area, in Desh. You would need people to take care of it.

Building wealth is a slow process. Only very few are lucky to make quick bucks. Good luck.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Jayram » 15 Jan 2010 03:24

pandyan wrote:BTW, interest rates on fixed deposits are really good in India.

Tata motors is accepting 2/3 years deposit and are paying 8.75% for 3 years and APR 9.88%. There is a .25% extra for Tata shareholders. Senior citizens get an extra 0.25%.

However, the interest income is taxed at source @ 30% I believe. So, after tax returns would be close to 6.9%. And one is getting these returns with minimal risks...

http://www.tatamotors.com/ for more details


To corroabate the above as a valid investiment strategy check this article on how savy NRI desi community has been doing this over the last couple of years.
NRI get Return Gifts
One of the probable reasons for huge rise could be that NRIs took advantage of interest rate arbitrage,” said G Narayanan, executive director, Indian Overseas Bank. “They sent money to India at a time when domestic interest rates were high and subsequently withdraw the money back when rates started softening. Besides, an NRI gets lower interest on deposits made directly (by them trough various NRI schemes) than a local resident. Thus, it could have made more sense for them to invest through relatives, who are now remitting it back.’’

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Re: NRI Investment in India and R2I Financial Concerns

Postby putnanja » 15 Jan 2010 03:39

What do the gurus think about the future of exchange rates? Is there any chance of USD falling more or will it strengthen?

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Re: NRI Investment in India and R2I Financial Concerns

Postby Suraj » 15 Jan 2010 17:11

I would not recommend making currency bets as an investment play. The INR-USD exchange rate is much too volatile, and you will get burned with short term plays. One should decide where you are going to live long term, and based on the time horizon, gradually move assets over into the appropriate currency. The INR will probably be stronger vs USD around 10 years from now, but expecting any realistic estimates for timeframes of a year or so is unreasonable. There are ways to hedge against a falling USD in such a short term, but using the INR is not one of them.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Suraj » 29 Jan 2010 02:38

Overseas Indian Faciliation Centre: Guide to investing in India
About OIFC

The Overseas Indian Facilitation Centre (OIFC), a not-for-profit public private initiative between the Ministry of Overseas Indian Affairs (MOIA) and Confederation of Indian Industry (CII), was established on 28th May 2007.
Acting as a focal point for facilitating the process of economic engagement of the Indian diaspora with India, OIFC has a three-fold mandate of:

* Promoting investments into India
* Catalysing business to business partnerships, and
* Enabling knowledge exchange

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Re: NRI Investment in India and R2I Financial Concerns

Postby Neshant » 01 Feb 2010 01:02

has anyone ever got a PAN card and setup a Demat account from overseas to trade on the stock market?

how easy/difficult is it (from overseas) ?

Manu
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Re: NRI Investment in India and R2I Financial Concerns

Postby Manu » 02 Feb 2010 18:49

A post after many months.

Very few of us are in a position to individually do anything to combat the many ills still plaguing our resurgent Mother India, but we can do this - this is an excellent organization and I would heartily encourage all BR members (& lurkers alike) encourage to invest (note that I said invest, not donate) in this great cause.

Read the website and make up your own mind.

http://rangde.org/index.htm

Best,
Manu

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Re: NRI Investment in India and R2I Financial Concerns

Postby vera_k » 03 Feb 2010 04:44

Neshant wrote:has anyone ever got a PAN card and setup a Demat account from overseas to trade on the stock market?

how easy/difficult is it (from overseas) ?


Its very difficult because of the "fill form in triplicate sign on 72 pages and wait for navel gazers to approve" process. Plus, short selling is not allowed through the PIS. Better option is to trade through Interactive Brokers, since you have access to NSE, plus can trade any other market (OECD markets) you choose.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Neshant » 03 Feb 2010 08:37

thanks for the info Vera.

Why does the govt make it so hard for NRIs to invest in the Indian stock market. GOI could open up a great stream of revenues just by simplifying and automating this process.

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Re: NRI Investment in India and R2I Financial Concerns

Postby vera_k » 03 Feb 2010 23:03

To be fair, it is not the GoI that makes it difficult, but the implementation of GoI rules by private parties that sucks.

Consider my case -

1. Fill in forms
2. Attach xerox of visa
3. Make out power of attorney
4. Fill in forms after 4 months again because forms changed.
5. Submit xerox of visa and foreign bank statement because depositary officer needs proof of NRI status
6. Broker informs that POA has to be redone because some official in the chain deems it is not done correctly (although it is registered).

At the end of this nautanki, all one can do is :roll: and invest in Brazil.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Neshant » 04 Feb 2010 09:46

Damn that is way too much beurocracy.

How easy is it to use Interactive Broker's system for simple buy and sell stock transactions?

I'm wondering if I'm better off buying an India specific ETF listed on either the DOW or TSX. Or is it better to buy the stocks directly from the NSE via Interactive Brokers?

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Re: NRI Investment in India and R2I Financial Concerns

Postby Suraj » 04 Feb 2010 10:30

The stocks vs ETF/MutF question is not India specific. Are you familiar with investing in individual US/Canadian stocks ? If you're capable of researching stocks yourself and then building a portfolio, then do so. Otherwise, take the ETF/MutF route.

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Re: NRI Investment in India and R2I Financial Concerns

Postby preeshcode » 05 Feb 2010 02:41

Hi all:

I just joined this forum though I have been reading here for a while. I am an NRI based in NY City. I wanted to ask: is it better to build out commerical/residential buildings and rent them out or just sell the land and profit from it. I have come into inheritance and wanted to see if I could just sell the land and profit from that. Will sitting here in the US be a major problem when it comes to building out offices/homes in this land and renting them in India? How efficient is outsourced real estate management in India?

Thanks and will be good to talk to everyone.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Neshant » 28 Mar 2010 09:25

preeshcode wrote:Hi all:

I just joined this forum though I have been reading here for a while. I am an NRI based in NY City. I wanted to ask: is it better to build out commerical/residential buildings and rent them out or just sell the land and profit from it. I have come into inheritance and wanted to see if I could just sell the land and profit from that. Will sitting here in the US be a major problem when it comes to building out offices/homes in this land and renting them in India? How efficient is outsourced real estate management in India?

Thanks and will be good to talk to everyone.


You definately don't want to outsource real estate management to anyone in India because they will just end up squatting on your property. It then becomes a big nusiance to evict them. So be careful and don't sign over ownership of the property to anyone looking to 'help' you. They will just screw you over and take it from you.

Neshant
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Re: NRI Investment in India and R2I Financial Concerns

Postby Neshant » 28 Mar 2010 09:33

I just checked out Interactive Brokers for trading stocks on the Indian stock market.

Looks like a bunch of fees embedded in the fine print i.e. required minimums, minimum activity fee per month..etc. Also what do they mean by :

Introducing Brokers Commission
A commission minimum of USD 2,000 (or non-USD equivalent) per month will be applied. In addition, a USD 10,000 (or non-USD equivalent) up front deposit will be required that will be applied against commissions during the first five months of business. The USD 2,000 (or non-USD equivalent) monthly minimum will be waived during this period.


What the heck is an 'introducing brokers commission'?

Sounds like a load of hassel. Maybe I'm better off just shorting western markets than spending time (and probably money) finding out how to invest in Indian companies.

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Re: NRI Investment in India and R2I Financial Concerns

Postby vera_k » 29 Mar 2010 11:51

^^^

That is required if you want to be a broker yourself. In any case since India is unlikely to be the best performing market all the time, the best way to invest would be through a diversified emerging markets fund that is at liberty to move money around the world in search of returns.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Vipul » 31 Mar 2010 02:10

To all US Citizen Rakshak's who have gone the R2I route, Can you please share your experiences of filing the US Tax returns from India.How does the Double Taxation avoidance thingie work?? Especially when the Indian tax returns are for the April-March timeframe and the US are for Jan-Dec.I am confused thinking about it and would like to hear how its is done/accomplished.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Chinmayanand » 08 Apr 2010 17:02

Highest NAV or marketing gimmick?

I think we need to have a separate investment related thread as this one caters only to NRIs. Mods please take note and create one.

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Re: NRI Investment in India and R2I Financial Concerns

Postby Prabu » 21 Jul 2010 18:43

Hi Friends, For any Investment in to Mutual funds and stocks please read the follwoing sites.

1) http://money.outlookindia.com/
There is a listing of TOP 50 funds of various categores. Select and choose.
There is an excellent COVER STORY in OUTLOOK MONEY,
Simplify Your Financial Life by TEENA JAIN & TEAM

2) http://www.livemint.com
There is a listing of TOP 50 funds of various categores. Select and choose.

3) http://new.valueresearchonline.com/
This gives Execellent insight about the Mutual fund investments & shares too with ratings.


If you read these 3 sites regularly, you will becoem a Master by yourself soon !
All these 3 sites are free sites.

P.S. : For more advanced news & Tips you can buy VALUE REASERCH online magazines , MUTUAL FUND INSIGHT & WEALTH INSIGHT at a very nominal prices.

Happy Investing !

PRABU

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Re: NRI Investment in India and R2I Financial Concerns

Postby Suraj » 23 Jul 2010 03:41

Useful taxation information for NRIs from Business Standard. Posting in full since I don't know when link will go stale:
When you are an NRI...
As the last date for filing tax returns nears, those who earned income abroad (‘global income’) may have to make some extra effort while computing their tax liability. In case of employees on deputation abroad, the Income Tax (I-T) Department computes the tax on the basis of their residence status over a certain period of time.

If the deputation is for less than 180 days or six months, he/she is considered an Indian resident. Consequently, their incomes — Indian salary and foreign allowance — are clubbed and taxed in India. According to the I-T Act, such individuals are deemed Resident and Ordinarily Resident (ROR).

Those working overseas for more than 180 days and less than two years are considered non-resident Indians (NRIs) under the I-T Act. “The allowance paid to them is considered global income and does not come under the Indian tax regime in case you have a treaty with the foreign country,” said Kaushik Mukherjee, executive director, PricewaterhouseCoopers. However, your India-sourced income will be taxed.

In case there is no treaty with the host country, the situation could be tricky. In order to avoid double taxation, you need to produce a tax credit certificate. And, if you have paid extra tax, there will be no refund.

But the situation can get more confusing for a person who has spent more than six months but less than two years in a foreign country. Reason: The I-T Department classifies anyone who has stayed abroad for over six months as an NRI for two years.

N C Hegde, tax partner, Deloitte Haskins & Sells, said: “If a person has stayed for just a little more than six months, say eight months, the person is considered an NRI only for that financial year. The income earned for the rest, in this case four months, is taxable according to the I-T Act.”

There are two probable situations in case of an NRI’s tax computations:

* If you stay abroad for more than six months in one financial year, you become an NRI for the entire financial year.
* If you have stayed for eight months abroad and paid tax there, you will be taxed only on the salary earned in India for the rest four months. Also, though the I-T Department gives you the NRI status for two years, your local income in the second financial year will be taxed in India.

For professionals, consultants or corporate heads who earn income in India and abroad over longer periods, there is a special category — Resident, but Not Ordinarily Resident (RNOR) status. “This is a transition status, similar to an NRI. In this situation, your income in India is taxed. The global income earned is taxed in the host country,” added Mukherjee. You will be required to produce a copy of your tax credit abroad for getting tax relief in India.

However, if the pay cheque for the deputation abroad is received in India, the tax incidence on the income will occur locally. On the other hand, if the salary is deposited in a bank account abroad, you will not be taxed.

But the I-T Act has some clauses governing an individual’s inclusion in this category too:

* One should have been an NRI for nine out of the last ten years, or,
* One must have stayed in India for 729 days (nearly two years) or less in the last seven years.

“Being in this category works best for expatriates. When they are hired in India, they are exempted from paying tax for the first two years of their stay here,” Hegde added.


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