With Karvy Online being one of the major financial services company of India, Karvy NRI Trading is a topic of great interest. Many NRIs want to know how they can benefit from the growth of the Indian market and use Karvy for the same.
Karvy is one of the few companies that assist NRI trading in the Indian securities and equities sector. However, NRIs often find it hard to know about how to take the first step, or who to turn to in case disaster strikes.
Therefore, we will tell you all everything you need to know as an NRI regarding Karvy NRI trading. Read on to find out in detail:
Karvy NRI Trading Qualification
To be eligible for Karvy NRI Trading, the only requirement is that you will need to be qualified as an NRI according to the rules that are put forward by FEMA.
You could be a citizen of Indian residing elsewhere or a person of Indian origin.
In order to be qualified as an NRI, you need to fulfil any one of the below conditions:
If you have not been in India for 182 days in the financial year, OR
If you have not been in India for 365 days in the last 4 financial years AND 60 days in the previous financial year
In order to open a Karvy NRI Trading Account, you will require certain documents. These are:
If you have an Indian passport, you will require a photocopy of the passport. The place of birth should be an Indian address in the passport. You will also require a photocopy of a valid VISA as well.
If you have a foreign passport, you will be required to submit a photocopy of the passport. The passport should have the place of birth as India. If the place of birth isn’t an Indian address, the person will need to submit a photocopy of the certificate of Person of Indian Origin or OCI.
You will also need to submit a PIS permission letter. This letter can be obtained from the bank where you have opened the PIS account.
A photocopy of the PAN card will be required as well.
You will need to submit a photocopy of the proof of overseas address. There can be many documents submitted for the same. These include Foreign passports that contain a place of residence outside India, driving license in the country of residence, utility bills, statements of overseas banks, leave and license agreement, copies of rent agreements (duly notarized), or sales deeds. In the case of utility bills or bank statements, the document should be less than two months old. Further, if you are submitting rent agreements, you will need to submit notarized copies.
A photograph of the person who is investing
A photocopy of the bank account statements and depository accounts.
With Karvy NRI Trading, an NRI can invest in the following investments in the Indian sector:
An NRI is allowed to purchase shares as well as convertible debentures of any Indian company. This can be done via stock exchanges. It is carried out under PIS (Portfolio Investment Scheme), with a repatriable or a non-repatriable account.
An NRI can also invest in dated government securities other than the bearer securities. They can also put their money in treasury funds.
Karvy NRI Trading also allows investing in domestic mutual funds.
An NRI investor is allowed to buy or sell bonds that are issued by any PSU i.e. Public Sector Undertaking in India.
Shares of the Public Sector Enterprises that are being disinvested by the Government of India are allowed to be invested by the NRI trading clients of Karvy Online.
An NRI can also trade in the Exchange Traded Funds (ETF). They can do it on a repatriable as well as on a non-repatriable basis.
Karvy NRI Trading Charges
Most of the Karvy NRI Trading Charges are same as those for resident Indians, with some differences here and there. These charges include:
The Demat account opening charges are ₹650 or the minimum that is employed by KSBL (which can change from time to time).
An NRI has to pay an annual maintenance charge of ₹1500 every year. This charge is applied in the month in which the account is opened.
There is a transaction fee employed on every transaction.
If the transaction is done through KSBL through a KSBL POA registered account, the charges are ₹15 per transaction.
If the transaction is done through KSBL through a KSBL non POA registered account, the charges are ₹20 per transaction.
If the transaction is not done through KSBL, a charge of ₹30 is employed for every transaction that is up to ₹30000 or less. ₹10 is further charged for every increment of ₹30,000. The transaction fee is subjected to a minimum fee of ₹30 and a maximum of ₹1000 per transaction.
There are dematerialization charges of ₹5 per certificate. Courier reimbursements charges are employed at ₹40 per DRF.
There is a flat fee for rematerialization charges of ₹20 for every 100 securities or less, or a flat fee of ₹20 per certificate whichever falls at lower.
There are charges for Pledge creation, closure, invocation, and confirmation. These are charged at 0.03% of the value of the pledge. There is a minimum charge of ₹100 per scrip too. The maximum charges can be ₹1000.
There are other additional charges that are imposed over these basic ones.
These include service tax, securities transaction tax (STT), and other charges that are levied by the Government bodies or other statutory authorities. These charges are prone to variations from time to time if the government rules and regulations vary.