OCI and Demat Account for trading on Indian stcok market

T

TPK

Registered Users (C)
Friends,

I am an OCI and have the following questions:

1. Is it possible for an OCI to have a Demat account as a citizen of United States?

2. I know that an OCI can own housing and apartments in India.Let us say an OCI rents out his or her aprtments in India.The OCI receives monthly rents in Rupees. How will an OCI convert the rupees into dollars and transfer them to the US? I know an NRI Indian National could transfer upto 5k in USD per trip to India. Does this remain the same for an OCI?

3. I still have old Bank accounts from the time I was in India before going to the uS for studies. Can I continue to maintain these?

ANy help will be greatly appreciated.

Thanks in advance

TPK
 
TPK said:
Friends,

I am an OCI and have the following questions:

1. Is it possible for an OCI to have a Demat account as a citizen of United States?

2. I know that an OCI can own housing and apartments in India.Let us say an OCI rents out his or her aprtments in India.The OCI receives monthly rents in Rupees. How will an OCI convert the rupees into dollars and transfer them to the US? I know an NRI Indian National could transfer upto 5k in USD per trip to India. Does this remain the same for an OCI?

3. I still have old Bank accounts from the time I was in India before going to the uS for studies. Can I continue to maintain these?

ANy help will be greatly appreciated.

Thanks in advance

TPK
Click to expand...


I don't have an answer but I'm in the same situation, I have old local bank accounts and a demat account in India. I asked the Branch Manager of one of the banks and he couldn't find anyway of converting everything to an NRI account, and his advise was let sleeping dogs lie.
 
TPK said:
Friends,

I am an OCI and have the following questions:

1. Is it possible for an OCI to have a Demat account as a citizen of United States?

2. I know that an OCI can own housing and apartments in India.Let us say an OCI rents out his or her aprtments in India.The OCI receives monthly rents in Rupees. How will an OCI convert the rupees into dollars and transfer them to the US? I know an NRI Indian National could transfer upto 5k in USD per trip to India. Does this remain the same for an OCI?

3. I still have old Bank accounts from the time I was in India before going to the uS for studies. Can I continue to maintain these?

ANy help will be greatly appreciated.

Thanks in advance

TPK
Click to expand...

Yes OCIs can open demat accounts.
Resident bank accounts need to be converted to NRI bank accounts as soon as one becomes a NRI.

profitshastra dot com has more info about opening NRI demat account.
 
For financial purposes you are considered an NRI. You can do what any NRI is allowed to do. You will need a PAN (Permanent Account Number) issued by Income Tax Department in order to operate a Demat account.
You should be able to convert rental income money to US dollars at any bank. Remember that any such income is subject to US taxes.

Once you become an NRI you are supposed to designate ALL your bank accounts in India as NRI accounts.
 
TPK said:
Friends,

I am an OCI and have the following questions:

1. Is it possible for an OCI to have a Demat account as a citizen of United States?
---Yes, you need PAN Card Or PAN number.
2. I know that an OCI can own housing and apartments in India.Let us say an OCI rents out his or her aprtments in India.The OCI receives monthly rents in Rupees.
--------Rent should go to NRO Account.
How will an OCI convert the rupees into dollars and transfer them to the US?
-------- Pay the tax on rental income and you will need Bank letter or CA letter to convert them to US Dollar and can transfer. CA can help you.

I know an NRI Indian National could transfer upto 5k in USD per trip to India.
--------NRI can transfer 5K per day through any bank like ICICI or HDFC. one can transfer 5K next day. My friend transfred to his NRE account about 50K in 10 days as he wanted to buy Flat in building If you are taking more than 5K when you visit India and want to deposit in NRE accont then you need Currency declaration form when you reach India and can get that form from Customs department at Airport.
Does this remain the same for an OCI?
------------------------------Yes. if you want open company then you can transfer more as per requirement. Go RBI site and read
3. I still have old Bank accounts from the time I was in India before going to the uS for studies.
Can I continue to maintain these?
------------------------------According to RBI you should convert that account to NRO but many bank dont know and many dont inform the bank and keep that account and do nothing.RBI has not said about any penalty if one does not inform the bank. FYI if NRO account then from the interest they deduct 30%. if you keep the saving account and don’t update then bank don’t keep 30% and pay you full interest(that is why many don’t inform the bank) Bank cut the TDS if Interest is more than 10000 per year from saving bank account and it is per branch.. Suppose you have saving account with Branch A and interest is 3500 for 1 lack per year then Branch A will not cut TDS. You have saving Bank account also with branch B (can be same bank branch or other Bank) and have 1 Lac in that account and you will get 3500 from that account if 1 lac was with them for 1 year.
ANy help will be greatly appreciated.

Thanks in advance

TPK
Click to expand...
---- go to RBI site
 
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