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NRI CORNER

AIF & PMS Chatbot

Hello there!

Welcome to AIF & PMS Experts India Pvt. Ltd.

Who is an NRI?

NRIs are citizens of India who have been away from India for more than 182 days in a financial year (1st April to 31st March). NRIs are known as citizens of India, but the difference is they don’t pay tax here.

India’s massive industrial development is attracting Foreign Direct Investment(FDI). Thus NRIs are taking a keen interest in investing in India. Here we at AIF & PMS Experts will guide you to cross all the hassle that comes in the path of NRI investing. Our primary aim is to help our clients serve them with the best market opportunities. And to make investing a happy one.

Investing in India would be an excellent option for  NRIs. India’s colossal economy has the caliber to deliver good investment returns. Make your investing pathways easy with https://aifpms.com/about-us/.

Can NRIs Invest In India?

There are many misconceptions related to NRI investing, like NRI investing is complicated, riskier, and many more such assumptions. Let’s ditch all misconceptions and learn the best possible options for NRI investing in India.

Options Available For NRI Investment In India

  1. Alternative Investment Fund (AIF)
  2. Portfolio Management Service (PMS)

There are many mistakes that NRIs make while investing in India. A team of experts can help NRIs make judicious use of their hard-earned money.

We at AIF & PMS Experts Pvt. Ltd. have an experienced investment team to help NRIs make wise investment decisions. Contact https://aifpms.com/contact/, Write your queries and make smart, intelligent investment decisions.

Why is investing in India a perfect choice?

India is the largest democracy in the world with a stable government. The stable governing of the country is what acts as a base for the economy to grow. Hence, a stable government is crucial while investing in a country’s market. The Indian market is also governed by two government bodies: the Reserve Bank of India and India’s Securities and Exchange Board. Their vigilant governing makes India a safe and stable market to invest in.

India’s position and ranking globally are increasing in all aspects. India was ranked at 63rd position in 2019 from the 142nd ranking in 2014 in the World Bank’s Ease of Doing Business Ranking 2020. On the Global Competitiveness Index of 2018 to 2019, India ranked 68th globally. India’s Aadhar Scheme is one of the most extensive social security programs globally.

India is one of the fastest-growing economies in the world. The economy of India is predicted to grow by 6.7% in the year 2022. The country’s GDP is increasing at an excellent pace. The country is expected to see a substantial increase in GDP in the financial year. The real GDP growth is supposed to be recorded at 11% and the nominal GDP at 15.4%, the highest growth since independence. The government of India launched the Atmanirbhar Bharat Abhiyan, which, if translated, means Self-reliant India. It is a special economic package of more than $270 billion, which equals 10% of India’s GDP, which gave the Indian economy the backing and a boost necessary to counter the effect of the Covid-19 pandemic.

The Indian market is a perfect choice for NRIs as it offers them various tax benefits. NRIs get a tax benefit under the Double Taxation Avoidance Agreement. Under this agreement, investors avoid double taxation where the investment is made and at the country of residence. India has this agreement with many countries, including France, the USA, Italy, the UK, Canada, etc.

 

Eligibility criteria for NRIs for investing in AIF and PMS in INDIA

AIF and PMS allow all Indians to invest in the Indian market. Under the regulation of the Securities and Exchange Board of India, Non-resident Indians are also permitted to invest in the market, although certain restrictions are imposed.

These rules are not only on the investment but the investor also. There are a few eligibility criteria set by the Securities and Exchange Board of India that the Non-resident Indians need to qualify.

There are various parameters included in these criteria which are different based on the source of the funds. The source of funds can either be self-investing or backed by angel investors. Self-investing is when the investment corpus is funded by the investor itself. On the other hand, An investor being backed by angel investors is when the investor contributes to a part of the corpus and the rest by the angel investors or sponsors.

Non-resident Indians need to have a minimum corpus of Rupees 20 crores if they are self-investing. However, if they have angel investors backing them, the minimum corpus required is Rupees 10 crores. The sponsor or manager should bear a continuous interest for Rupees 5 crores or less than 2.5% on the initially invested corpus.  One thousand investors are the maximum number of investors for each scheme.

It is also mandatory for Non-resident Indians to have a Demat account and a trading account.

It is also essential to have a Non-resident External (NRE) account or a Non-resident Ordinary (NRO) account. A Non-resident External (NRE) account is where an NRI can park their foreign earnings in India. An NRE account is tax-free. At the same time, a Non-resident Ordinary (NRO) account is an account where an NRI can park their profits from or make in India. An NRO account is subject to tax deduction at source (TDS).

NRIs can also invest in PMS

The NRI has to appoint a stock broker who is a resident of India and can buy or sell shares on his behalf. The NRI also has to open a separate NRI PMS Account and sign an agreement with the PMS Service provider. The documentation process is typically handled by the stockbroker or service provider themselves on behalf of the NRI.
All the other dos and don’ts are applicable to NRIs under the RBI’s PIS Scheme. These include limits on the investments made in single stocks or on the procedure for investments made under repatriation & non-repatriation basis as well as those applicable for short-selling of shares.
The NRI can also transfer existing investments to the PMS service provider. On the expiry of the PMS contract, NRI investors can repatriate the net investments, post-tax, if they were done through the NRE PIS Account.
Charges for PMS may be fixed or performance-linked, or a combination of both. These are clearly communicated to the NRI investor and documented in the agreement between the two. Other charges, those applicable for operating the PIS Account, demat maintenance charges as well as brokerage charges for transactions are also required to be paid.
For NRI’s, PMS services offer the benefit of personalised, professional money management with easy access to the fund manager as well as flexibility in investment decisions – making them attractive avenues for investment.

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