 The NRI can deal with only one bank at any point of time. |
| He is allowed to invest only 5% of the paid up capital of a company. The aggregate paid up value of equity of any company purchased by all NRI's and OCBs cannot exceed 10 percent of the paid up capital of the company and in the case of convertible debentures, the aggregate paid up value of each series of debentures purchased by all NRI's and OCBs cannot exceed 10 % of the paid up value of each series of convertible debentures. |
| He can enter only into delivery based trades, all deliveries must only be routed through beneficiary accounts and not directly through the broker. |
| Shares bought by him cannot be sold unless the payout of the same is received from exchange. |
| All purchase and sale transactions have to be reported to the RBI by the designated bank. |
| Original brokers contract notes have to be submitted to the designated Bank branch, within 24 hours of the transaction. |
| He will be required to make bill to bill payments/ settlements. No adjustments of purchase against sale consideration should be done. |
| Shares cannot be bought against the shares sold in the same settlement. |
| All Purchase and Sales will be dealt separately for payments / receipts.
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| Sale proceeds of any transaction not reported/approved by the RBI is allowed to be credited to the NRE/NRO savings/demat account. The transaction will have to be reversed in the account and losses if any will be borne by the client. |
| All tax liabilities arising out of buying and selling of securities will be handled by the designated bank.
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