PMS for NRI

India stands as a beacon for one of the world’s largest and wealthiest expatriate communities. As the Indian economy expands, the interest of affluent Non-Resident Indians (NRIs) in Indian share investments is on the rise. Recognizing this trend, numerous banks, advisory firms, and brokerage companies now offer specialized goods and services tailored for the NRI population, with Portfolio Management Services (PMS) emerging as a prominent offering.

For NRIs with a substantial investment budget exceeding 50 Lakhs, Portfolio Management Services (PMS) present an avenue for higher returns and more flexible investments. Conversely, Mutual Funds prove to be a fitting choice for NRIs with a more modest budget, requiring a minimum investment of Rs. 500.

In PMS services, the brokerage business applies Tax Deducted at Source (TDS) on relevant taxes for NRI investors, disbursing the net earnings. At the year-end, portfolio managers provide tax statements, offering transparency throughout the investment journey. NRIs, even if their capital gains in India are below Rs. 2,50,000, should file a tax return to claim a refund of the taxes withheld at the source.

PMS services are accessible to all Indian citizens, irrespective of residence status. To participate in the PMS program, NRIs must establish a Portfolio Investment Scheme (PIS) Account, as mandated by RBI regulations. This involves designating an Indian resident stockbroker to execute share transactions on their behalf. The NRI enters into a contract with the PMS Service Provider and establishes a unique NRI PMS Account, with paperwork typically handled by the stockbroker or service provider.

Under RBI’s PIS Scheme, various guidelines apply to NRIs, covering aspects such as single stock investments, rules for repatriation or non-repatriation basis investments, and regulations pertaining to share short sales. Existing investments can be transferred to the PMS service provider, and for investments made through the NRE PIS Account, repatriation of net investments is possible at the end of the PMS contract.

Payment for PMS services can be fixed, performance-based, or a combination of both, as outlined in the agreement between the investor and the service provider. Additional fees, including those for running the PIS Account, demat maintenance, and transaction brokerage, are also applicable. Despite being relatively more expensive and lacking specific tax advantages for NRIs, PMS services offer the benefit of personalized, professional money management, direct access to fund managers, and flexibility in investment choices, making them an attractive investment avenue.

AIF & PMS Experts Pvt. Ltd. stands as a guiding force for NRIs, aiding them in making well-informed investment decisions. Connect with us at https://aifpms.com/contact, share your inquiries, and embark on your investment journey with wisdom.

To facilitate the account opening process, NRIs need to provide a set of essential documents:

• PAN Card
• Passport
• VISA / Permit Card / Resident Card
• Overseas Address Proof
• Indian Address Proof
• OCI / PIO Card (if applicable)
• Latest Indian arrival stamp on Immigration Page – Passport
• IT Return / Bank Statement / Holding Statement with Valuation of 50,00,000/- & above as an AML Supporting
• Registered Bank Proof

• Overseas Mobile No.
• Mother’s Name for HDFC CKYC Form & ASKIM Form
• Email ID
• Country of Tax Residency, TIN No. & TIN Type
• Additional details based on the account holder’s occupation: Salaried – Complete details of Office, including company name and postal address; Business – Nature of Business, Type of Company, Date of Incorporation, Company Name with Postal Address
• Annual Gross Income, Net Worth
• For Nominee – Name, Date of Birth, PAN No., and Relationship details
• Latest bank statement or Investment / Holding statement attested by the banker or self-attested IT Return as AML Supporting.

• Accounts to be Opened: NON-PIS Bank a/c & PIS with HDFC Bank, Demat a/c with HDFC Bank, PMS Account with ASKIM, Broking a/c with JM Financials
• All KYC documents must be self-attested by the client, and original verification stamping is to be done by Intermediary RM (Only banks are allowed), including RM Name, Employee code, Company name, date, and OSV.
• If the client is unavailable in India during signup or for in-person verification, KYC documents must be attested to confirm verification with the originals by a Notary Public, any Court Magistrate, Judge, Local Banker, or the Indian Embassy/Consulate General of the country where the NRI is residing.
• Existing PIS Account with the bank, if any, needs to be closed.

Important Note: NO CLIENT ACCOUNT shall be onboarded from certain jurisdictions immediately, and this must be duly noted.

Embarking on the journey of PMS investment might seem daunting due to the numerous documents and records required. Fret not! Click here to share your contact details, and our team of experts will reach out to you promptly. We understand the intricacies involved and are here to guide you with a professional touch and utmost empathy. Your investment journey is our priority, and we are committed to making it as seamless as possible.