Posted on: 12-01-08 18:35:14
As Dmat account is required in India for buying and selling indian shares .
Are we as Canadian Citizens allowed to open such account in India,and buy and sell from here.
Any info will be good.
I think you need PAN no. and you should be able to open one.
check reliancemoney website with same name
If u r not an Indian citizen, you cannot directly trade in Indian stock exchanges. Alternative is through ADR's. Details -> http://www.rbi.org.in/Scripts/BS_FemaNotifications.aspx?Id=174
Check Schedule II -> 4 (1) (i)
You might want to check if OCI card gives any trading rights though... I have no idea about that.
Is it possible to open a demat account in someone elses name (say one of our parents) and transactions will be on my orders.
Does anyone know what will be the tax consequenses from this for the resident and the NRI.
Thanks
Who ever holds the demat a/c is responsible. You can't do legal trading in some one else's name (binami trading)
NRI's can have an offline Demat account. visit
http://www.icicibank.com" rel="nofollow">LINK and follow Demat link.
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sAnToShI
Hope this provides complete info.
Most banks in India do not provide /allow NRI to open trading account (for buying and selling shares)
One obvious reason, I guess, is that those banks which have branches in USA are scared and/or prohibited!
The ONLY bank that allows this facility is HDFC bank. Visit their web site and all contacts are provided. I recommend to contact NRI help at Bombay only. Recently I spoke to their customer service and some idiot girl lectured me that I can not have trading account. The reason is that these novices lump Canada with USA. USA securities regulation does not permit US residents to trade in shares outside USA ostensibly to "protect" interest of US residents. Look at the scandals in USA and you can not help but wonder about the real motive. Any way to come back to the main topic, it is necessary to emphasis that you are Canadain resident. Most bank staff speak about "North America" while legally only USA residents are not allowed. So be clear.
You can open account from Canda but all your documents will have to be certified by Indian embassy officials! They DO NOT ACCEPT originals!
You can Open NRI (External) or NRO (Rupee) account and then can trade in shares/mutual fund on net.
You do require PAN Card for both. Unfortunately again if you are from any place other than Metro, it will take at least 6 months to get PAN card (WHich is MUST) the reson being UTI and NSDL Staff DO nOT KNOW how to process PAN card at other centres(These two entities only issue PAN Card and not incometax dept)
You areliable to Indian and Canadian income tax
Do not contact Citibank as they fool people (like they fooled investors !)They open only bank account and do not permit share trading account
