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Want to trade online? 10 things to keep in mind

Want to trade online? 10 things to keep in mind

When to comes to trading online, it is not about hard work or intuition. It is about knowing what applies to you. If you are an NRI investor and are wondering about how to start, read on.

    • NRE Account

You can open an NRE account that will allow you to invest in Indian stocks. The benefit with this is that you can repatriate your earnings to your country of residence.

    • PIS

You will need an approval under the Portfolio Investment Scheme by the RBI, which allows you to invest in the India stock market.

    • Demat

Opening a Demat account is the starting point for nay first-time investment, but particularly an NRI, since you might not have been trading in the Indian market actively.

    • Holding restrictions

As an NRI, you cannot hold more than 10% of the total holdings in and Indian listed company. If it is a public sector bank, you are allowed 20%.

    • Day trading

As an NRI, you cannot participate in short-selling or day trading. Assuming you buy a stock today, you can only sell it after two days. Bear this in mind and invest wisely.

    • Tax liabilities

The tax liabilities for an NRI are similar to that of a normal resident. There is one exception—NRIs are Tax Deducted At Source (TDS).

    • Avoiding duplicate taxation

When you take your Indian-earned income back to your resident country, you need not pay tax yet again.

    • New NRI Demat

If you are moving now, make sure you sell your existing investments in India before doing so. If not, ensure that you transfer the existing stock to your new NRI Demat account.

    • NRE or NRO

What kind of an account do you want? Bear in mind that an NRO account will not allow you to take back the money you earn out of investment. Know more about the Difference between NRE and NRO account.

  • Think long term

If you are looking for good returns, short-term investments will not cut it. Understanding that day selling is out of your bounds, ensure you use your capital wisely.

The bottom line

Emerging markets like India are considered good investment options with the potential to deliver high returns. As an NRI, you may want to invest in Indian stocks too. The best part is that the process of doing so is quite simple.

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