Can NRIs Invest In Stock Exchange Of Home Country?

Indian diaspora sends money to India for different investment purposes, i.e. real estate, stock exchange and other marketing sectors. Since they are limited in the number of non-resident investors they can take, most UK-registered money transfer companies with Indian operations do not welcome investments from Indians residing in the United Kingdom.

NRIs can trade in Indian capital markets through the Reserve Bank of India’s(RBI) portfolio investment scheme (PIS). An NRI must open an NRE/NRO account with an RBI-approved Indian bank under this scheme. An individual may only have one PIS account in which to buy and sell stocks.

NRIs cannot trade securities in India on a non-delivery basis, i.e., they cannot day trade or short sell. They can only sell a stock after two days if they purchase it today. Short-selling is the practice of selling stocks that one does not own in the hopes of a price decline and then repurchasing them at a lower price.

What Is The Procedure Of Investment In the Indian Stock Exchange?

According to the Foreign Exchange Management Act (FEMA) of 1999, a Non-Resident Indian (NRI) is anyone who lives outside of India but is either an Indian citizen or a Person of Indian Origin (PIO). Indians settling in other countries see India as a great place to invest and transfer money to India online because of its rapid growth and ease in transaction due to the latest technology. They’ve always been enticed to invest in the Indian stock markets. Bank deposits, real estate, shares, and debts are all options for NRIs looking to invest in India.

When an Indian foreign national invests in the Indian stock market through a portfolio investment scheme, they do not need clearance from the Reserve Bank of India or the Government of India. However, in some cases, where they transfer money to India for investment in cultivation or irrigation is necessary, NRIs may be required to obtain permission from the Foreign Investment Promotion Board (FIPB).

How Do NRI Transfer Large Sum Of Money To Home Country For Investment Purposes?

Those were the past days when banks were the only way to send money within and outside the country. With the advancement of technology and globalization, sending money to India online is considered the most secure and quick way to transfer a large sum of money. There are hundreds of money transfer service providers with different service fees.

Here you need to invest few minutes in looking for the best service regarding sending money to your home country and charges for the transaction. If you do not have time for research, let us help you, ACE money transfer is the customer’s #1 recommendation according to TrustPilot reviews for ACE Money Transfer. The reason behind being the number one service provider is fee-free service and high exchange rate for worldwide transactions.