Q. Who is a NRI ?
As per the income tax act, an NRI is an Indian who is in India for at least 182 days in the financial year; or 365 days out of the preceding four financial years and 60 days in that year. An Indian Citizen who stays outside India either for the purpose of carrying out employment or business or vocation. An Indian citizen deputed outside India for a temporary period for his / her employment.
Q. Who is a PIO ?
PIO is a Person of Indian Origin.
A citizen of any country other than Bangladesh & Pakistan is a PIO if the person held an Indian Passport at any time
The person OR either of the person’s parents OR either of the grandparents were a citizen of India
The person (citizen of any country other than Bangladesh & Pakistan) is a spouse of an Indian citizen
of a person of Indian origin is also deemed to be a PIO.
PIO card holders do not require a visa to visit India. They enjoy parity with NRIs with respect to all facilities in the economic and financial fields.
Q. What is NRE ?
NRE stands for Non Resident External. NRE is a type of bank account opened for and by Non Resident Indians. Money lying in an NRE account can be taken outside the country, or we can say, the money lying in NRE account is fully repatriable. This money can be converted into any foreign currency as desired by the account holder and can be remitted outside India. Money can be freely transferred from the NRE account to NRO account.
Q. What is NRO ?
NRO stands for Non Resident Ordinary. NRE is a type of bank account opened for and by Non Resident Indians. It is just like any other ordinary saving bank account. Money lying in an NRO account cannot be taken outside the country or we can say, the money lying in NRO account is non repatriable. Money cannot be transferred from NRO account to NRE account.
Q. What is PIS ?
PIS stand for Portfolio Investment Scheme. It is a scheme promoted by RBI to allow investments by NRIs & PIOs. Under this scheme, NRIs and PIOs can buy and sell shares & convertible debentures of Indian Companies by buying or selling through accounts held for the purpose with designated bank branch. An NRI or PIO who wants to invest in equity secondary market can do so only through a PIS account and on recognized stock exchanges. It is mandatory for an NRI or PIO to have a PIS account in order to invest in Indian equity and only one PIS account can be held at a time with only one designated bank branch. PIS account is meant for investing in Indian markets only. PIS account is not allowed for investment in mutual fund. RBI has authorised a few main branches of major commercial banks as Authorised Dealers (ADs) to offer PIS.
Q. What is a non PIS account ?
A non PIS account is like a normal savings bank account which can be opened with any bank in India and the transactions taking place in the account are not required to be reported to RBI. Those shares which are not allowed to be sold under PIS account can be sold under this account. Shares acquired in IPO, gifted by someone or bought as a resident Indian can be sold under this account. Mutual Fund transactions and shares acquired as NRI / PIO from an IPO can also be affected in this account.
The act of investing money or capital in order to gain profit in form of interests, rentals, dividends and appreciation over the long term is known as an investment.
Q. What is currency trading ?
In simple words, currency trading is the act of buying and selling international currencies. Very often, banks and financial trading institutions engage in the act of currency trading. Individual investors can also engage in currency trading, attempting to benefit from variations in the exchange rate of the currencies.