NRI Faqs

12/22/2014
ICICI direct.com :: FAQ
NRI Investment-Regulatory-FAQ
1
NRI Account -FAQ
General
1.1.1
Who is an NRI?
1.1.2
Who is a PIO?
1.1.3
What is an 'Overseas Corporate Body' [OCB]?
1.1.4
Which are the broad schemes under which an NRI can make investments in the Indian companies?
1.1.5
What steps an NRI needs to take to start investing in the Indian stock Market?
1.1.6
In case a resident Indian becomes a non-resident, will he/she be required to change the status of his/her
holding from Resident to Non-Resident?
1.1.7
In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of
his/her holding from Non-Resident to Resident?
1.1.8
Can NRIs invest in shares, debentures and units of mutual funds in India?
1.1.9
Can NRI's subscribe to public issues? What are the permissions/approvals required?
1.1.10
Does an NRI require any permission to receive bonus/rights shares?
Investments
2.1
Initial Public Offer (IPOs)
2.1.1
What is meant by investment through direct subscription route?
2.1.2
Do investments made though IPOs or Private placements come under PINS?
2.1.3
Do NRIs need any permission of RBI to subscribe for IPOs or Private placements of equity
shares/convertible debentures of existing or new companies?
2.1.4
Do NRIs need approvals from RBI for selling securities acquired through IPOs/Private Placement?
Bank Accounts
3.1
General
3.1.1
What type of saving bank account(s) can be opened by an NRI or PIO in India?
3.1.2
What are the types of Rupee accounts permitted to be maintained for PINS?
3.1.3
Can a person have both normal saving as well as NRI status bank account?
3.1.4
Then what to do with the domestic money after becoming an NRI?
3.1.5
Where should one write in case of any bank related queries?
3.1.6
What is the status of NRO/NRE accounts on the return of the account holder to India?
3.2
NRE Account
3.2.1
What is a NRE bank account?
3.2.2
Can money be transferred from NRE account to NRO account?
3.3
NRO Account
3.3.1
What is a NRO bank account?
3.3.2
Can money be transferred from NRO account to NRE account?
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3.4
Repatriation And Non-Repatriation
3.4.1
Can an NRI have investments under PINS on repatriation and non-repatriation basis?
3.4.2
Under what circumstances can investments made under PINS be repatriated?
3.4.3
What are the provisions for corporate benefits for investment on repatriation and non-repatriation basis?
3.4.4
What are the provisions for securities resulting from corporate action on investments made through PINs
and Non PINS accounts?
3.5
Nomination / Joint Holder
3.5.1
Can there be any nomination to the bank account?
3.5.2
Can one have joint holder to the bank account?
3.6
Remittance
3.6.1
What is the meaning of remittance?
3.6.2
How can one remit/transfer fund to one's ICICI bank account in India?
3.7
Account Opening
3.7.1
What are the account opening formalities for opening a bank account?
3.7.2
Are there any charges for opening a bank account with ICICI Bank?
3.7.3
Is there any minimum balance one has to maintain in the bank account?
Demat Account
4.1
General
4.1.1
What is dematerialization?
4.1.2
Is dematerialization mandatory? Can I hold the shares in physical form?
4.1.3
Where can an NRI/PIO open a demat account?
4.1.4
Does an NRI need any RBI permission to open a demat account?
4.1.5
Can investments made under different schemes be held under a single demat a/c?
4.1.6
Can securities bought under repatriable and non-repatriable category be held in a single demat account?
4.1.7
Can I open more than one account with ICICI Bank Demat?
4.1.8
Do I have to keep any minimum balance of securities in my account?
4.1.9
Can someone operate my account on my behalf on the basis of a power of attorney?
4.1.10
What is Co-Holders? How many co-holders can I have?
4.1.11
Is there any account-opening fee?
4.1.12
How do I apply for a change of address of my Demat Account?
4.1.13
How do I close my demat account?
4.1.14
How will I received Corporate Benefit - Dividend, Bonus or Rights Issue?
4.1.15
How do I register a change in my signature with ICICI Bank Demat?
4.1.16
Can I dematerialize all my depository eligible securities through the same account?
4.1.17
Can I dematerialize shares, which are pledged with a bank, which is a DP as well?
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4.1.18
Can odd lot shares be dematerialised?
4.1.19
How do I demat shares with Pre-Marital / Maiden names?
4.2
Depository Participant (DP)
4.2.1
What is a Depository? Who is a Depository Participant (DP)?
4.2.2
Who can become a DP?
4.2.3
What are the features of depository and depository participant?
4.3
Nomination
4.3.1
Can I appoint a nominee to my account?
4.3.2
Can non-individuals appoint a nominee?
4.3.3
Can I appoint a minor as a nominee?
4.3.4
How do I change an earlier appointed nominee?
4.3.5
What is the procedure for transferring the securities in the name of the nominee?
4.3.6
What are the formalities in case of No Nomination?
4.3.7
What are the charges for transfer in such a case?
4.3.8
What the requirements / documentation for the above formalities?
4.4
Dematerialization Process
4.4.1
What is the procedure of Dematerialization?
4.4.2
Do NRI's need RBI permission for dematerialization / rematerialisation of securities?
4.4.3
How do I fill the DRF Forms?
4.4.4
DoWhat is the procedure to submit the certificates?
4.4.5
How much time does it take to credit my share certificated in the demat account?
4.4.6
Can I check the credit of my shares in my account?
4.5
Joint Holder Related
4.5.1
How can I transfer the shares in case of death of a joint holder?
4.5.2
How do I get the shares with another joint holder credit to a demat account?
4.6
TIFD / IDT Booklets
4.6.1
What are TIFD / IDT booklets?
4.6.2
Where can I request for a reissue of my TIFD / IDT booklets?
4.6.3
What are the details to be filled in the TFID / IDT?
4.6.4
How do I get TIFD / IDT in emergencies?
4.6.5
Where do I submit the TIFD?
4.6.6
Is there a deadline to submit the TIFD / DIT slips?
Portfolio Investment Scheme (PINS) Account
5.1
PINS
5.1.1
What is PINS?
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5.1.2
Why is PINS required?
5.1.3
How is this limit monitored?
5.1.4
How will bank come to know of the transaction done by an NRI?
5.1.5
How can one open a PINS account with a bank?
5.1.6
Are there any limits on the number of shares that can beheld by an NRI customer in an Indian Company?
5.1.7
Will the I-Sec system alert me on crossing the 5% limit?
5.1.8
What will happen if I place a buy order on www.icicidirect.com which results in more than 5% shares of the
company being held by me at a overall portfolio level?
5.2
Non - PINS
5.2.1
What is Non-PINS?
5.2.2
Why is Non-PINS required?
5.3
Restriction
5.3.1
Is there any limit for purchase by NRIs under the PINS?
5.3.2
Who monitors the ceilings on the holdings by NRIs/OCBs? What is RBI's Restrict List/Watch List?
5.3.3
What are the transactions covered under PINS?
5.3.4
What if the shares that are not allowed to be sold under PINS are sold under PINS?
5.3.5
If not under PINS, then where can these shares be sold?
5.3.6
Can an NRI have two PINS account?
5.3.7
What are the transactions allowed under Non-PINS?
5.3.8
What happens if any NRI/PIO purchases shares, which he is not allowed to?
5.3.9
Is such transaction possible?
5.4
Documentation
5.4.1
What are the documents required to open a PINS account?
5.4.2
What are the documents required for reporting to PINS ?
5.5
Charges
5.5.1
Are there any charges for PINS account?
Tax Deducted at Source (TDS)
6.1.1
What is TDS?
6.1.2
What are the types of rates applicable?
6.1.3
How is TDS computed?
6.1.4
How is TDS deducted and the money transferred to the bank account?
6.1.5
What are the documents required for transactions under Non-PINS?
6.1.6
What is the TDS rate calculated in Mutual Fund fro NRI's ?
7
7.1.1
Corporate Benefits
What is a Book closure/Record date?
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7.1.2
What is the difference between book-closure and record-date?
7.1.3
What is an ex-date?
1 General
1.1.1 Who is an NRI?
An NRI is an Indian citizen who stays outside India
(a) For purposes of carrying out employment or any business or vocation;
(b) under circumstances indicating an intention to stay outside India for an uncertain duration;
(c) any Indian citizen deputed outside India for a temporary period in connection with employment.
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1.1.2 Who is a PIO?
A citizen of a foreign country (other than a citizen of Bangladesh or Pakistan) is a PIO if
(a) he/ she at any time held an Indian passport; OR
(b) he/ she or either of his/ her parents or any of his/ her grandparents was a citizen of India; OR
(c) spouse (not being a citizen of Bangladesh or Pakistan) of an Indian citizen or (a) or (b) above
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1.1.3 What is an 'Overseas Corporate Body' [OCB]?
'Overseas Corporate Body' means a company, partnership firm, society and other corporate body owned directly or
indirectly to the extent of at least sixty percent by Non-Resident Indians and includes overseas trust in which not
less than sixty percent beneficial interest is held by Non-Resident Indians directly or indirectly but irrevocably. OCBs
were debarred from Portfolio Investment Scheme w.e.f November 29, 2001. OCBs have been banned as a class of
investor w.e.f September 16, 2003. However, they have been permitted to continue to hold the securities acquired
by them prior to these dates. Accordingly OCBs may open a demat account, however it can be only for the purpose
of dematerializing the existing holdings.
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1.1.4 Which are the broad schemes under which an NRI can make investments in the Indian companies?
Broadly, NRIs are allowed to invest under the Portfolio Investment Scheme (buying through the secondary market)
and through the Direct Subscription route (Investments though IPOs/Private Placements).
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1.1.5 What steps an NRI needs to take to start investing in the Indian stock Market?
1. An NRI should open a new bank account with designated bank branch, which is approved by RBI
(Reserve Bank of India) for this purpose.
2. He should apply for a general approval for investment in Indian Stock Market through his designated bank
branch.
3. He should open a Demat Account with a Depository Participant to hold his shares.
4. He needs to register with a broker to execute his buy/sell orders on the stock exchange(s).
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1.1.6 In case a resident Indian becomes a non-resident, will he/she be required to change the status of his/her
holding from Resident to Non-Resident?
As per section 6(5) of FEMA, NRI can continue to hold the securities, which he/she had purchased as a resident
Indian, even after he/she has become a non-resident Indian, on a non-repatriable basis.
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1.1.7 In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of
his/her holding from Non-Resident to Resident?
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Yes. It is the responsibility of the NRI to inform the change of status to the designated authorized dealer branch,
through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she
has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened,
securities should be transferred from the NRI demat account to resident account and then close the NRI demat
account.
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1.1.8 Can NRIs invest in shares, debentures and units of mutual funds in India?
NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund.
They are also permitted to make portfolio investments i.e. purchase of share / debentures of Indian Companies
through stock exchange. These facilities are granted both on repatriation and non-repatriation basis.
Top
1.1.9 Can NRI's subscribe to public issues? What are the permissions/approvals required?
Yes. The issuing company is required to issue shares to NRI on the basis of specific or general permission from
GOI/RBI. Therefore, individual NRI need not obtain any permission.
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1.1.10Does an NRI require any permission to receive bonus/rights shares?
No.
2 Investments
2.1 Initial Public Offer (IPOs)
2.1.1 What is meant by investment through direct subscription route?

As per the regulations NRIs are allowed to invest up to a certain percentage of the total paid up capital of the
company by directly subscribing to the equity/convertible debentures of the company either though a public offering
made by the company or through private placements on one to one basis. Regulations provide for different ceilings
on such investments based on the industry to which the company belongs and also the nature of investments
(repatriation / non-repatriation basis).
Top
2.1.2 Do investments made though IPOs or Private placements come under PINS?
No. Investments made by NRIs though subscription to Initial Public Offerings (IPOs) or Private placements are not
covered by Portfolio Investment Scheme. Such investments are covered by RBI's regulations with regard to Foreign
Direct Investments.
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2.1.3 Do NRIs need any permission of RBI to subscribe for IPOs or Private placements of equity shares/convertible
debentures of existing or new companies?
No. NRIs do not require any permission to invest though Initial Public Offerings (IPOs) or Private placements. In
such cases, the Issuing company should comply with all necessary regulations for issuing securities to a person
resident outside India.
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2.1.2 2.1.4 Do NRIs need approvals from RBI for selling securities acquired through IPOs/Private Placement?
No. NRIs can sell such shares/debentures on the Exchange without any approval. However, while seeking the
credit of sale proceeds to NRE/NRO account, the bank should be provided with the details regarding date of
allotment and cost of acquisition to calculate the taxes, if any.
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3 Bank Accounts
3.1 General
3.1.1 What type of saving bank account(s) can be opened by an NRI or PIO in India?
Any NRI/PIO can open two types of savings accounts with any bank in India. They are NRE and NRO bank
accounts.
Top
3.1.2 What are the types of Rupee accounts permitted to be maintained for PINS?
NRIs can maintain two types of account i.e. Non-Resident (External) Rupee Accounts (NRE Accounts) and Ordinary
Non-Resident Rupee Accounts (NRO Accounts).
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3.1.3 Can a person have both normal saving as well as NRI status bank account?
Any individual cannot hold both the status i.e. Non-resident as well as resident at the same time. Therefore, if the
individual is an NRI, he needs to close normal saving account and open NRE/NRO or both accounts. If the
individual is resident Indian, then he needs to have a resident saving account and close NRE/NRO accounts. Note:
therefore no cheques drawn on resident saving account are accepted towards NRI account opening fees of
ICICIdirect.
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3.1.4 Then what to do with the domestic money after becoming an NRI?
For the same NRO accounts are opened. The monies lying in resident saving account can be transferred to NRO
account.
Top
3.1.5 Where should one write in case of any bank related queries?
nri@icicidirect.com is one point of contact for all queries related to one's NRI bank account with ICICI bank ltd.,
India. For any further info on bank accounts with ICICI Bank Ltd., India please visit www.icicibank.com
3.1.6 What is the status of NRO/NRE accounts on the return of the account holder to India?
RBI has advised banks to re-designate such accounts as resident accounts on return of the account holder to India.
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3.2 NRE Account

3.2.1 What is a NRE bank account?
A NRE bank account is an external saving bank account opened for Non resident Indians. This is why it is known as
Non-Resident External account. Since it is an external account, any monies lying in NRE account can be taken
outside the country or in other words, the monies lying in NRE account are fully repatriable. This money can be
converted into any foreign currency at the behest of the account holder and can be remitted outside the country.
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Top
3.2.2 Can money be transferred from NRE account to NRO account?
Yes money can be freely transferred from NRE account to NRO account.
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3.3 NRO Account

3.3.1 What is a NRO bank account?
A NRO bank account is an ordinary saving bank account opened for Non resident Indians. This is why it is known
as Non-Resident Ordinary account. Since it is an ordinary account i.e. as good as a normal saving bank account,
monies lying in NRO account cannot be taken outside the country or in other words, the monies lying in NRO
account are not repatriable. This money cannot be converted into foreign currency and hence cannot be remitted
outside the country.
Top
3.3.2 Can money be transferred from NRO account to NRE account?
No, money cannot be transferred from NRO account to NRE account. Money even by error if transferred from NRE
account to NRO account, it cannot be transferred back to NRE account
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3.4 Repatriation And Non-Repatriation

3.4.1 Can an NRI have investments under PINS on repatriation and non-repatriation basis?
Yes. Investment can be made on repatriation as well as non-repatriation basis. However, an NRI will have to open
NRE account as well as NRO account with designated bank branch as the sale proceeds of non-repatriation
investment can only be credited to NRO account.
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3.4.2 Under what circumstances can investments made under PINS be repatriated?
The repatriation of the sale proceeds, net of taxes, are allowed if the original purchase was made on repatriation
basis and such investments were made out of funds from NRE/FCNR account or by means of remittance from
abroad.
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3.4.3 What are the provisions for corporate benefits for investment on repatriation and non-repatriation basis?
Corporate benefits may be in the form of dividend, interest, rights, bonus, etc. Any corporate benefit resulting out of
investment in securities on non-repatriation basis will not carry the right of repatriation. Similarly any corporate
benefit resulting out of investment in securities on repatriation basis will carry the right of repatriation. This is subject
to change depending on prevailing RBI regulations.
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3.4.4 What are the provisions for securities resulting from corporate action on investments made through PINs and
Non PINS accounts?
Upon any corporate action such as bonus issue on Shares bought in the PINs account, the shares have to be
transferred to Non-PINS demat account from PINS account and sold from there. The sale proceeds are credited to
the Non- PINS account. Upon sale of shares resulting from any corporate action on shares bought in the Non PINS
accounts, the sale proceeds are credited to Non - PINS account. In both cases, the acquisition cost of the same is
taken as "Zero".
Top
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3.5 Nomination / Joint Holder

3.5.1 Can there be any nomination to the bank account?
Yes, nomination can be done for the bank accounts. a. Nomination for the bank accounts can also be provided later
after opening of the accounts. b. Nominee can be a resident Indian also. c. No documents or signatures of the
nominee are required for nomination. d. Joint holder for the said accounts cannot become the nominee of the same
account.
Top
3.5.2 Can one have joint holder to the bank account?
Yes, one can have up to two joint holders for a bank account. In case of NRE bank account, all the holders have to
be NRI/PIO, however in case of NRO bank account, joint holders can be resident Indian also. Note: In case of
accounts linked to ICICIdirect, there can be only one joint holder.
Top
3.6 Remittance
3.6.1 What is the meaning of remittance?
Remittance in banking terms means transferring of funds from one country to another country.
Top
3.6.2 How can one remit/transfer fund to one's ICICI bank account in India?
Money can be transferred to one's NRE/NRO bank account in India, through various channels offered
by ICICI Bank Ltd. Some of them are:
Online Modes:
1. E-transfer
2. Cheque Transfer
3. Power Transfer
4. Net Express
5. Card transfer
6. Special gulf products
Offline Modes:
1. Insta transfer
2. Speed transfer
3. Demand drafts
4. Home point
5. Cheques
6. Wire transfer
7. POSB in Singapore.
Note: for more details please visit www.icicibank.com
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3.7 Account Opening

3.7.1 What are the account opening formalities for opening a bank account?
For opening a NRE or NRO bank account, there is a separate form to be filled up. All such forms and document
requirements are mentioned on www.icicibank.com. Note: For all the bank accounts opened with ICICIdirect
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account, no separate bank account opening forms have to be filled. Account opening for the bank accounts to be
linked with ICICIdirect account is taken care of by the same application form filled for ICICIdirect account.
Top
3.7.2 Are there any charges for opening a bank account with ICICI Bank?
No there are no charges for opening only ICICI Bank account.
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3.7.3 Is there any minimum balance one has to maintain in the bank account?
Yes, one has to maintain average quarterly balance of Rs. 10000 in each NRE or NRO bank account opened with
ICICI Bank, or if all the accounts are opened under one customer ID, then 25000 in all the accounts combined
together. Say, for example an NRI has opened both the NRE as well as NRO bank account, and both the accounts
are opened under one customer ID, then if he maintains Rs.25000, in either of the accounts, he need not maintain
any balance in the second account.
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4 Demat Account
4.1 General
Top
4.1.1 What is dematerialization?
Dematerialization is the process of converting the securities held in physical form (certificates) to an equivalent
number of securities in electronic form and crediting the same to the investor's demat account. Dematerialized
securities do not have any certificate numbers or distinctive numbers and are dealt only in quantity i.e. the securities
are fungible.
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4.1.2 Is dematerialization mandatory? Can I hold the shares in physical form?
Dematerialization of your holdings is not mandatory. You can hold your securities either in demat form or in physical
form. You can also keep part of your holdings (in the same scrip) in demat form & part in physical form. However, a
select list of securities announced by SEBI can be delivered only in demat form in the stock exchanges connected
to NSDL
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4.1.3 Where can an NRI/PIO open a demat account?
NRI/PIO can open a demat account with any Depository Participant [DP] of NSDL. The NRI/PIO needs to mention
the type ['NRI' as compared to 'Resident'] and the sub-type ['Repatriable' or 'Non-Repatriable'] in the account
opening form
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4.1.4 Does an NRI need any RBI permission to open a demat account?
No permission is required from RBI to open a demat account. However, credits and debits from demat account may
require general or specific permissions as the case may be, from designated authorised dealers.
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4.1.5 Can investments made under different schemes be held under a single demat a/c?
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No. Securities received against investments under 'Foreign Direct Investment scheme (FDI)', 'Portfolio Investment
scheme (PIS)' and 'Scheme for Investment' on non - repatriation basis have to be credited into separate demat
accounts. Investment under PIS could be on repatriation or non - repatriation basis. Investment under FDI scheme is
on repatriation
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4.1.6 Can securities bought under repatriable and non-repatriable category be held in a single demat account?
No. An NRI must open separate demat accounts for holding 'repatriable' and 'non-repatriable' 'pins' or 'non-pins'
securities.
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4.1.7 Can I open more than one account with ICICI Bank Demat?
Yes, you can open more than one account with ICICI Bank Demat. There is no restriction on the number of accounts
you can open with the same Depository Participant (DP).
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4.1.8 Do I have to keep any minimum balance of securities in my account?
No, there is no prescribed minimum balance. You can have a zero balance in your account.
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4.1.9 Can someone operate my account on my behalf on the basis of a power of attorney?
Yes, if you authorize any person to operate your account by executing a power of attorney (POA) and submit it to us,
that person can operate the account on your behalf. If you have given POA earlier and now wish to operate the
account yourself, the POA has to be revoked by you in writing.
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4.1.10What is Co-Holders? How many co-holders can I have?
The joint applicant in Demat is known as Co-holders, there can be up to 2 Co-holders in the demat account opened
with I-Direct. For any transfer of shares from the a/c the signature of the Co-holders is mandatory.
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4.1.11Is there any account-opening fee?
Depending on the DP, there may or may not be an opening account fee. DPs levy fees towards transaction and
annual maintenance fees.
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4.1.12How do I apply for a change of address of my Demat Account?
The following requirements should be complied with: The NRI (or his authorised representative) should personally
visit the branch. In case of a corporate, at least one of the authorised signatories should visit the office of the
Participant in person. The NRI (or a joint holder or his authorised representative) should sign the request in
presence of the branch officer. In case of a corporate, at least one of the authorised signatories should sign the
request in presence of the branch officer. The application should be signed by all the holders. The following
documents should be submitted along with the request
Proof of Identity (any one of these, to be taken for all joint holders):
1. Passport
2. Voter Id Card
3. Driving License
4. PAN Card (with photograph)
5. MAPIN card
6. Credit cards/Debit cards issued by Banks with applicant's photo.
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7. Employee Identity card with applicant's Photo, issued by

a. Central/State Government and its Departments,
b. Statutory/Regulatory Authorities,
c. Public Sector Undertakings,
d. Scheduled Commercial Banks,
e. Public Financial Institutions,
f. Professional Bodies such as ICAI, ICWAI, ICSI and Bar Council,
8. Identity card/Document with applicant's Photo, issued by
a. Scheduled Commercial Banks,
b. Professional Bodies such as ICAI, ICWAI, ICSI and Bar Council.
Proof of Address (any one of these, to be taken for all joint holders):
1. Ration Card
2. Passport
3. Voter Id
4. Driving License
5. Bank Statement/Passbook
6. Verified copies of
a. Electricity bills (not more than two months old),
b. Residence Telephone bills (not more than two months old) and
c. Leave and License agreement/ Agreement for sale.
7. Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own
accounts.
8. Flat allotment letter having address issued by
a. Central/State Government and its Departments,
b. Statutory/Regulatory Authorities,
c. Public Sector Undertakings,
d. Scheduled Commercial Banks,
e. Public Financial Institutions,
f. Professional Bodies such as ICAI, ICWAI, ICSI and Bar Council
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4.1.13How do I close my demat account?
If you need to close your demat account, you should make the request for the same in the prescribed form. The
account closure form is available at the nearest Branch. Submit the duly filled up form at the nearest Branch. Please
ensure that
There are no holdings in the account or you have requested for transfer of all holdings in
1. Your account closure request
2. You have paid all your dues
Charges on transferring securities on closure of the account are the same as for normal transfers. Earlier the
NSDL portion was waived but now NSDL has withdrawn this waiver.
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4.1.14How will I received Corporate Benefit - Dividend, Bonus or Rights Issue?
In case the company in which a beneficial owner holds shares in demat form announces any corporate benefits like
bonus, dividend etc. the beneficial owner will receive the same directly in his demat account or bank account Pins
NRE,Non-Pins NRE,Pins NRO, Non-Pins NRO from which ever a/c the client has acquired the shares depending
on the nature of the benefit. For payment of dividend etc., the company/registrar takes a list of beneficial owners
from NSDL as on the record date/book closure date. Based on this list, company makes payment of dividend. If the
company is making the payment through ECS, the company will directly credit the dividend to the bank account
registered by the beneficial owner with the DP under intimation to the beneficial owner. If the company is making
the payment through a cheque/DD, the bank details will be printed on the dividend warrant. The mode of payment
of dividend etc is decided by the company itself. In case of a bonus declaration by a company, the bonus securities
on the eligible securities in the beneficial owner's demat account are automatically credited to the beneficial
owner's demat account by the company/registrar under an intimation to the beneficial owner. This will be reflected
in the transaction statement for the period. In respect of the physical holdings, the customer will receive bonus
securities in physical form. In case of a rights issue, the beneficial owner will receive an option to subscribe for the
eligible number of securities from the company/registrar. These securities may be in physical form or in electronic
form in the customer's demat account. The customer can exercise the same in the normal course. While exercising
the option (in respect shares both in physical or electronic form), the customer may mention the demat account in
which the securities allotted are to be credited provided the company is available for demat with NSDL.
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Alternatively, the customer can also ask for the securities in physical form. In case of a merger or acquisition,
securities in the beneficial owner's demat account is automatically credited and debited by the company/registrar as
per pre-declared ration under an intimation to the beneficial owner. This will be reflected in the transaction
statement for the period.
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4.1.15How do I register a change in my signature with ICICI Bank Demat?
You would have to make a request in writing. You would also have to get your signature duly attested by your
banker, with whom you hold the bank account that has been specified for receipt of dividend.
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4.1.16Can I dematerialize all my depository eligible securities through the same account?
Yes. You can choose to have all your securities deposited in a single account provided that the securities have the
same holders.
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4.1.17Can I dematerialize shares, which are pledged with a bank, which is a DP as well?
Yes, you can, with the permission of the bank with whom such shares are pledged.
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4.1.18Can odd lot shares be dematerialised?
Yes, Odd lot share certificates can also be dematerialized.
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4.1.19How do I demat shares with Pre-Marital / Maiden names?
In such cases you need to submit a certified true copy of the marriage certificate along with the Demat Request
Form (DRF), when you give your shares for dematting. Also provide an attested new specimen signature
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4.2 Depository Participant (DP)

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4.2.1 What is a Depository? Who is a Depository Participant (DP)?
A depository is an organization formed to provide electronic depository facilities for securities traded. Securities are
then held in the electronic form through the medium of depository participants (DPs). The National Securities
Depository Limited (NSDL) is the first depository in India. The functions of NSDL are regulated by the Securities and
Exchange Board of India (SEBI). The depository is not just another custodian. The depository can legally transfer
beneficial ownership, which a custodian cannot. The chief objective of a depository is to reduce settlement risk by
minimizing the paperwork involved in trading, settling and transferring securities. To utilize the services offered by a
depository, you must open an account with the depository through a DP. The DPs are the link between the
shareholder, the company and NSDL.
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4.2.2 Who can become a DP?
Banks, financial institutions, custodians and stockbrokers can become DPs subject to their meeting certain
requirements prescribed by NSDL and SEBI. NSDL publishes the list of DPs registered with them, from time to time.
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4.2.3 What are the features of depository and depository participant?

1. The DP will provide you with a passbook or 'Statement of Account' periodically to inform you on your
holdings.
2. You can even have a zero balance in your account.
3. If you lose your 'Statement of Account', inform the DP and obtain a duplicate.
4. If holdings in the statement are incorrect, approach the DP for clarification.
5. If you receive an incorrect dividend amount or do not receive it at all, contact the company or registrar.
6. If looking for a loan against your securities, you will have to pledge them in favour of the lending institution
by applying to your DP in the prescribed form. After repayment of the loan request redemption of the pledge,
by applying to your DP.
7. Though Depository is the registered owner in the books of company the investor has all the rights &
powers as a beneficiary owner
4.3 Nomination
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4.3.1 Can I appoint a nominee to my account?
You can make a nomination of your account in favour of any person by filing up the nomination details in the
account opening form. This is to enable the nominee to receive the securities after the death of all the holder(s) of
the demat account.
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4.3.2 Can non-individuals appoint a nominee?
Nominees can be appointed by individuals only. Non-individuals including society, trust, body corporate,
partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot nominate.
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4.3.3 Can I appoint a minor as a nominee?
Where a minor is appointed as a nominee, the name and address of the guardian is also required to be obtained.
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4.3.4 How do I change an earlier appointed nominee?
Where a nomination has not earlier been made or where an earlier nomination is ought to be changed, you can
submit a duly filled-in nomination form at the nearest Branch. The account holder, nominee and two witnesses must
sign this form and the name, address and photograph of the nominee must be submitted.
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4.3.5 What is the procedure for transferring the securities in the name of the nominee?
In case of the death of the sole holder or all the joint holders, the nominee must submit a duly filled-in transmission
form and give the notarised copy of death certificate and an affidavit in the prescribed format. After verifying these
documents, the securities will be transferred to the account of the nominee.
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4.3.6 What are the formalities in case of No Nomination?
If there is no survivor amongst the account holders and a no nomination had been done by the holder(s) earlier, the
legal heirs can request the DP for the securities to be transferred to his demat account. In addition to the documents
specified under Common Requirements below, a true copy of the Succession certificate or Probate or Letter of
administration duly notarised should be submitted by the claimant.
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4.3.7 What are the charges for transfer in such a case?
No transaction charges will be levied for transfer of shares from the old account to the account of the claimant.
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4.3.8 What the requirements / documentation for the above formalities?
If the demat account of the claimant does not exist, a new demat account will need to be opened. If the claimant is
having a demat account but with another DP, a proof of the same is required from the other DP. The claimant only
needs to approach the DP. He need not lodge a claim for transmission separately with each issuing company or its
R&T Agent. The following documents should be submitted with the request:
i) A copy of the death certificate duly attested by a notary or verified with the original by an authorised person
of the ICICI Bank branch.
ii) Transmission form duly completed by the claimant in Annexure "O".
iii) An Off-market TIFD for the entire securities/ holdings for transmitting the shares.
4.4 Dematerialization Process

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4.4.1 What is the procedure of Dematerialization?
Client submits a DRF form along with the physical share certificate to the DP (Depository Participient) who in turn
forwards it to the Registrar & Transfer agent for confirmation from the company. After the confirmation is received the
client a/c is credited.
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4.4.2 Do NRI's need RBI permission for dematerialization / rematerialisation of securities?
No special permission is required. Holding securities in demat only constitutes change in form and does not need
any special permission. However, only those physical securities which already have the status as NR - Repatriable
/ NR- Non-Repatriable can be dematerialised in the corresponding Depository Accounts. Please keep a record of
all your shares certificates and a verified copy of your share certificate and DRF form with you, while submitting the
originals for dematerialization.
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4.4.3 How do I fill the DRF Forms?
Before filling the form, ensure that security mentioned on the certificates is eligible for Demat. For being eligible for
demat, the company has to sign up with NSDL. You can check eligibility on www.icicibank.com or ask the nearest
Branch. Use a separate DRF for each security having a unique International Security Identification Number (ISIN).
Verify the certificates carefully and mention the correct ISIN. In case two or more sets of certificates of the same
security have different ISIN (this is possible in case of partly paid up shares and non-pari passu shares), use
separate DRFs for each ISIN. However, you can dematerialise multiple folio nos. of the same pattern of holders
relating to the same ISIN under a single DRF.
Name Mismatch
Demat requests received from client(s) with name(s) not matching exactly with the name(s) appearing on the
certificates merely on account of initials not being spelt out fully or put after or prior to the surname, can be
processed. However, this is possible only if the signature(s) of the client(s) on the DRF tallies with the specimen
signature(s) available with the Issuer or its Registrar. For example, the shareholder may have opened the
depository account in the name of Sushil Ramesh Shah but his name on the share certificate may appear as S. R.
Shah or Sushil R Shah etc.
Combination Mismatch
The combination and the order of holders' names on DRF and as printed on the Certificates should be identical with
that in the DP account.
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For example, if the shares are in the name of X, Y (X as first holder and Y and second holder) it cannot be
dematerialised in the account of either X or Y alone. Also if the shares are in the name of X, they cannot be
dematerialised in the account of X, Y (X as first holder and Y as second holder).
Order mismatch i.e. Transposition
However, where the combination of holders is the same in the certificates and in the demat account, and the
difference is only in the order in which the name of the holders appear on the share certificates and in the demat
account, dematerialisation is possible. Here, you have to submit a Transposition Request Form along with the DRF.
The form is also available at the nearest Branch.
The DRF must be signed by all the account holder's and should be in the same order. The signature on the DRF
should match with the specimen signature with ICICI Bank. If the signature differs, you should sign the DRF in the
presence of the Branch Officer. If you have a doubt that the signature on the DRF may not match with that registered
with the Registrar, you can get the signature on the DRF attested by your banker. The details of certificates such as
the folio no., certificate no., & distinctive no. must be filled up correctly on the DRF.
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4.4.4 What is the procedure to submit the certificates?
You must deface the certificates by putting a stamp or by writing ''Surrendered for Dematerialization". However
defacing should be done only after checking the eligibility of security, as defaced securities cannot be sold in
physical form. If defacing has been done by mistake then you should send the same to registrar for replacement.
The Participant shall ensure that the certificates submitted for dematerialization are marked by the Client (customer)
with the words "Surrendered for Dematerialization"
Certificates should not be mutilated or defaced in such a way that the material information is not readable.
Ensure that the certificates are attached in the same order as mentioned in the DRF.
You should submit the DRF in triplicate. You can submit the DRF at any ICICI Bank branch. The acknowledgement
slip at the bottom of the form will be stamped and handed over to you after verification by the ICICI Bank official.
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4.4.5 How much time does it take to credit my share certificated in the demat account?
The defaced shares along with the DRF are sent by ICICI Bank to the registrar who will then credit the customer's
account. The normal time taken for credit of shares to the account after confirmation by the Registrar is about 30
days. However the time taken would vary from one registrar to another over which ICICI Bank has no control. In
case there is a delay beyond 40 days, if you so wish, ICICI Bank can give you the registrar's name and telephone
number as well as your Demat Request Number (DRN).
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4.4.6 Can I check the credit of my shares in my account?
To check whether your account has been credited, you can refer to the transaction statement. The same will be
reflected in pending demat balance on receiving your request. After dematerialization, the same will be reflected
under free balance. Alternatively you can use the web (register on www.icicibank.com), phone us or visit the ICICI
Bank branch. In case your account does not get credited within a month of submission, you can either phone us or
send an email to customer.care@icicibank.com
4.5 Joint Holder Related

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4.5.1 How can I transfer the shares in case of death of a joint holder?
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In case of certificates held jointly, on the death of any one or more of the joint holder(s) mentioned on the certificate,
the surviving joint holder(s) can get the name(s) of the deceased deleted from the physical certificate(s) and get the
securities dematerialized in the DP account of the surviving holder(s) by submitting the following documents along
with the DRF:
1. A copy of the death certificate duly notarized
2. A copy of the Succession certificate duly notarized or an order of a court of competent jurisdiction where
the deceased has not left a Will or
3. A copy of the Probate or Letter of Administration duly notarized
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4.5.2 How do I get the shares with another joint holder credit to a demat account?
If the name combination appearing on the share certificate differs from the combination in which the Demat a/c is
opened, the client can give a Transposition form along with the share certificate. The certificate will be credited in
the same combination as the Demat a/c is. Ex: The owners name in the certificate is A,B & C but the demat a/c is in
the name of C,B,& A then with the help of Transposition form the share can be credited to the demat a/c
4.6 TIFD / IDT Booklets

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4.6.1 What are TIFD / IDT booklets?
You are provided a "Personalized TIFD booklet" at the time of opening the account. You will need to use slips from
this booklet for all your transfers.
For IDT (Inter Depository Transfer slips), request for the same in writing to the nearest Branch. The request should
be signed in presence of the Branch Officer. Ensure you use slips allotted to your demat account only as per
business rules of NSDL.
Please do not use someone else's slip since that will not be accepted by the system and also cannot be processed
as per business rules of NSDL.
Please do not give your blank slip to anyone as this may lead to frauds and associated complications. If you lose
your booklet, report the same in writing (under signature of all account holders) to the nearest Branch immediately.
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4.6.2 Where can I request for a reissue of my TIFD / IDT booklets?
If you are nearing exhaustion of all slips in the booklet, you can request for reissue of a new booklet by visiting
nearest bank branch. Submit the request on the requisition slip present in your existing booklet. Where you are
unable to present the request on the requisition slip, you can submit a letter. However, the letter should be signed in
presence of the Branch Officer You can also register for the Internet Banking and Phone Banking facilities to submit
the request on Internet / Phone. The booklet will be couriered to you and will reach you within a week from the date
of submitting the request. On receiving your booklet, verify that your DPID, DP Account No. and name is present on
all slips including the Requisition slip.
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4.6.3 What are the details to be filled in the TFID / IDT?
Details to be filled up in both TIFD slips (for both Market and Off-Market Trades) and IDT slips
ISIN: This is the International Security Identification Number (ISIN) of the security to be transferred. This is a 12
character code starting with 'IN'. You should confirm this from your transaction statement and then fill up the same.
You can also check this on www.icicibank.com or from your nearest Branch or from your Broker. Be careful in
specifying the correct ISIN where a security has multiple ISINs.
Security Name: This is the name of the security to be transferred.
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Quantity: This is the number of units of securities to be transferred. This is to be filled up both in figures & in words in
the space provided.
Total ISIN to be delivered: This is the total number of ISINs to be delivered under the particular slip. Also strike out
the rows of ISIN details, which are not used to avoid any tampering.
Execution Date: This is the date on which the securities are to be transferred from your account. In case of market
trades, you should fill this up in consultation with your broker. In case the execution date mentioned by you is a
NSDL business holiday; the next working day is taken to be the execution day.
You may issue the instruction well in advance of the date on which you want the securities to be debited from your
account. By giving a future dated instruction you cover the risk against non-execution of instruction due to lack of
time or last minute rush. However in case the acquisition date has passed, you need to re-issue the TIFD.
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4.6.4 How do I get TIFD / IDT in emergencies?
In emergencies where you have exhausted your TIFD/IDT booklet and cannot wait for the time required to fulfill your
request for a new booklet, you can also get TIFD / IDT slips issued across the counter for emergency use.
For getting an emergency slip from your branch: You have to personally visit your home branch You have to request
for the slip on the prescribed form available at the branch. TIFD / IDT issued in such a manner are valid only for
immediate use
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4.6.5 Where do I submit the TIFD?
You can submit the TIFD at any ICICI Bank branch. Take the acknowledgement copy after stamping by the ICICI
Bank official.
You may issue the instruction well in advance of the date on which you want the securities to be debited from your
account. By giving a future dated instruction you cover the risk against non-execution of instruction due to lack of
time or last minute rush. You should submit the slip latest by 4 p.m. of the business day before the execution date
(i.e. there should be one clear working day gap between the date of submission of the TIFD and the execution
date).
Transfer instructions should not be submitted for execution day as holiday. If there is a holiday in between,
instruction should be submitted one day in advance.
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4.6.6 Is there a deadline to submit the TIFD / DIT slips?
You should submit the slip latest by 4 p.m. on business day prior to the execution date. TIFDs received after 4 p.m.
will be accepted on 'Best Effort' basis and ICICI Bank does not undertake any liability for its non-execution. They
may also attract a late charge (Please refer the rate card). In case of market trades, also ensure that the execution
date is specified such that securities are transferred to the pool account before the exchange pay-in deadline.
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5 Portfolio Investment Scheme (PINS) Account

5.1 PINS
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5.1.1 What is PINS?
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Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India (RBI) defined in Schedule 3 of
Foreign Exchange Management Act 2000 under which the 'Non Resident Indians (NRIs)' and 'Person of Indian
Origin (PIOs)' can purchase and sell shares and convertible debentures of Indian Companies on a recognized stock
exchange in India by routing all such purchase/sale transactions through their account held with a Designated Bank
Branch.
Any NRI or a PIO wanting to trade/make fresh investments in the Indian Equity Secondary Market, needs and must
have one PINS account with only one designated bank in India. Notes:
1. PINS account is applicable only for NRIs and not for resident Indians.
2. It is only for trading in Indian markets and not any other foreign markets
3. It is applicable only for equity trades and not MF investments
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5.1.2 Why is PINS required?
For all the Indian companies or companies listed on Indian stock exchanges, there are certain limits which have to
monitored under FEMA regulations. For any company the foreign investment into that company cannot cross a
certain limit. This limit is different from company to company and sector to sector. Also individually any NRI or a PIO
cannot invest more than 5% in any Indian company.
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5.1.3 How is this limit monitored?
On a daily basis, fresh purchases done by any NRI or a PIO need to be reported to RBI by the NRI. Since RBI could
not get in touch with all the NRIs/PIOs or the demand for such facility was increasing, it has appointed some banks
as designated banks to conduct this activity on its behalf.
These designated banks in turn report the transactions to RBI.
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5.1.4 How will bank come to know of the transaction done by an NRI?
The NRI or the PIO has to report all the transaction done on Indian stock exchanges to the bank with which he is
maintaining the PINS account. This reporting has to be done within 1 working day after the execution of the
transaction. Client has to submit the contract notes to the PINS department within one working day. Failing which
the transaction can be held invalid.
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5.1.5 How can one open a PINS account with a bank?
NRI/PIO has to apply to one of the designated banks in a prescribed format for PINS account, upon which the bank
can issue a PINS approval letter to the investor.
Note: For accounts opened with ICICIdirect, no separate application is required for PINS account. Application for the
same is made through the ICICIdirect application form.
5.1.6 Are there any limits on the number of shares that can beheld by an NRI customer in an Indian Company?
As per regulatory norms, an NRI customer can hold only upto 5% of the paid up capital of any Indian company.
5.1.7 Will the I-Sec system alert me on crossing the 5% limit?
Since I-Sec does not have the entire details of your holdings in a company, I-Sec does not restrict purchase of
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shares in any company for order quantity less than 5%. However, , there is a order level check in the system which
restricts a NRI customer to place a single order for more than the prescribed 5% limit. You are requested to ensure
that your holdings in any company is never more than 5% of it's paid up capital.
5.1.7 Will the I-Sec system alert me on crossing the 5% limit?
As mentioned earlier, if a single order for purchase of shares for more than 5% of the quantity is placed by you on
www.icicidirect.com, such order will be rejected by the system.
However, if you are already holding shares of a Company in your portfolio and place an order for additional shares
for less than 5% where such transaction causes your holding to exceed 5% of the share capital of the Company, the
shares pertaining to the excess holdings will be retained by I-Sec and not credited to you. The information about
purchase of the excess shares will be received by I-Sec from your designated bank at the end of the day; in this
case ICICI Bank. I-Sec will place a sell order in your account for the excess shares, subsequent to which the shares
would be credited to the exchange in settlement of the sell transaction.The sale proceed of the shares will be
credited to your linked bank account net of profit / loss , charges and TDS as applicable to the transaction.
5.2 Non - PINS

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5.2.1 What is Non-PINS?
Non-PINS is an account for which the transactions are not reported to RBI. This account takes care of selling of all
those shares which are not allowed under PINS. Shares acquired under IPO or received as gift or bought as
resident Indian can be sold under Non-PINS account.
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5.2.2 Why is Non-PINS required?
RBI under FEMA guideline, primarily ensures that the overall upper limit of foreign investments in any company is
not breached. Therefore it is essentially interested in monitoring all the fresh investments done by NRI/PIOs in any
Indian company.
Under IPO, it is the responsibility of the company to inform RBI of the shares it is allotting to NRIs, therefore these
shares are not covered under PINS.
Shares bought as resident Indian, do not confer the ownership right to any NRI as a foreign body, therefore these
shares are also not covered under PINS.
While declaring bonus, it is like a fresh issue of shares at zero cost, therefore the responsibility is of the company to
inform RBI about the shares it is providing to NRIs. Also since bonus is provided to all, overall percentage holding
remains the same.
While investing in MF, the voting right or the ownership of the shares remains with the AMC/trust and not the
individual investing in the MF. Therefore, here also reporting is not required and these transactions are covered
under Non-PINS.
For taking care of all such investments, Non-PINS account is required,
Note: On ICICIdirect, the system itself takes care of all such guidelines and regulations. Investor is allowed to do
only such trades which he is allowed to do and from the correct account. Anything which is not allowed under the
guidelines is not allowed on the site.
5.3 Restriction
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5.3.1 Is there any limit for purchase by NRIs under the PINS?
Yes. An NRI can purchase up to a maximum of 5% of the aggregate paid up capital of the company (equity as well
as preference capital) or the aggregate paid up value of each series of convertible debentures as the case may be.
For the purpose of this ceiling, investment under the Portfolio Investment Scheme on repatriation as well as nonrepatriation basis will be clubbed together.
There is an overall ceiling of 10% of paid-up equity share capital of the company/paid-up value of each series of
convertible debentures for purchase by all NRIs/OCBs put together. The overall ceiling can be raised if the
company concerned passes a special resolution to that effect in its general body meeting.
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5.3.2 Who monitors the ceilings on the holdings by NRIs/OCBs? What is RBI's Restrict List/Watch List?
While limits of individual holdings by NRIs/OCBs are monitored by the respective designated bank branch, RBI
monitors the holding limits by NRIs/OCBs in aggregate. Once the aggregate holding of NRIs/OCBs builds up/ about
to build up to the maximum prescribed ceiling, RBI puts the concerned stock under the Restrict List/Watch List which
is published by RBI from time to time. Click here to know the scrips under RBI cautious list
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5.3.3 What are the transactions covered under PINS?
For transactions to be covered under PINS it need to satisfy two conditions:
1.Purchase from Indian Equity Secondary market
2.As an NRI
Therefore following transactions are allowed:
1. Fresh purchase from the secondary market as an NRI
2. Sale of shares, which were bought under PINS
Therefore following transactions are not allowed or are not covered under PINS:
1.Sale of shares, which were not bought under PINS. Like: Gifts, subscription to IPOs or shares bought as resident
Indian, or received in bonus.
2.Fresh subscription for the IPOs as an NRI
3.Investment in Mutual Funds
Example(s)
1. There are two NRIs, A and B. A has bought some shares when he was resident Indian. Now he has become an
NRI, can he sell these shares under PINS?
Since these shares were not bought by A under PINS (as they were acquired when he was a resident Indian), these
shares cannot be sold under PINS.
2. A has bought some shares under PINS, now he has gifted those shares to B, who is also an NRI. Can B sell
these shares under PINS.
Although these shares were purchased under PINS, but for B still these shares are received as gift, so B can not sell
these shares under PINS.
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5.3.4 What if the shares that are not allowed to be sold under PINS are sold under PINS?
Once these selling transactions are reported to PINS department of the Bank, bank matches them against the
purchase transactions for the same shares in the past. If there is no such purchase transaction in the past, then the
sell transaction is not captured under PINS. Note: On ICICIdirect, system will itself not allow selling of those shares
under PINS which are not acquired under PINS.
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5.3.5 If not under PINS, then where can these shares be sold?
All those trades which are not allowed or captured under PINS are captured under Non - PINS. There is no
guideline for Non-PINS, but any equity market transaction which is not reported under PINS is covered under NonPINS.
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5.3.6 Can an NRI have two PINS account?
No, any NRI or a PIO can have only one PINS account in India. Say for example if he is having a PINS account with
X bank and he wants to shift to ICICI Bank, then he has to close the PINS account there and open a PINS account
with ICICI Bank.
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5.3.7 What are the transactions allowed under Non-PINS?
For transactions to be covered under Non - PINS, the acquisition should not be done under PINS.
Therefore following is allowed:
1.Sale of shares which were acquired other than under PINS.
1. Shares acquired through IPOs
2. Gifts from relatives or otherwise
3. Shares bought as resident Indian
2.Fresh acquisition through IPOs.
3.Investment in Mutual Funds
4. Shares received in bonus
Therefore following is Not allowed:
1.Sale of shares bought under PINS.
2.Fresh purchase from the secondary market as an NRI
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5.3.8 What happens if any NRI/PIO purchases shares, which he is not allowed to?
Say for example, if any NRI purchases shares of SBI, beyond the limit, which he can purchase, such fresh purchase
is invalid and he would be asked to dispose of these shares immediately. Loss if any would be borne by the NRI
only.
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5.3.9 Is such transaction possible?
Such transaction is possible as an error on part of the investor or the broker while executing the transaction in the
offline world. Note: Such error is minimized on ICICIdirect, because ICICIdirect system takes care of not allowing
any such transaction.
5.4 Documentation
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5.4.1 What are the documents required to open a PINS account?
If the NRI is already having a PINS account with some other bank, he has to close that account and provide
following documents along with the application form:
a. NOC: No objection certificate is required from the previous bank stating that the client does not have any
dues with them and the bank does not have any problem in his transferring the relationship to ICICI Bank.
b. Previous approval letter: Bank X would have issued a PINS approval letter. This letter is required.
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c. Details of the existing investments: Details of the existing investments is required, so that the same can be
recorded under PINS account with ICICI bank. Unless ICICI bank has record of these investments, NRI will
not be able to sell these shares and report under PINS account with ICICI Bank.
Top
5.4.2 What are the documents required for reporting to PINS ?
For any transaction to be reported to PINS, contract note of the broker should reach PINS department within one
working day following the day of transaction. Note: For all trades done on ICICIdirect, the reporting to PINS is
automatically done to the PINS cell of ICICI bank by ICICIdirect. NRI need not bother about confirming such trade to
PINS.
5.5 Charges
Top
5.5.1 Are there any charges for PINS account?
Yes, there are certain charges associated with the PINS account.
1. Annual maintenance charge: There is a AMC of Rs.2500 for PINS account with ICICI bank.
2. Transaction charges: There is a charge for each trade or transaction processed under PINS.
Note: For ICICIdirect account holders, AMC is waived off for first year and there is no transaction charge for the
trades. PINS transaction charge is not charged separately, instead it is included in the brokerage charged by
ICICIdirect for the trades.
Top
6 Tax Deducted at Source (TDS)

Top
6.1.1 What is TDS?
As per regulatory guidelines, Tax (if applicable) has to be deducted at source for all the profits done in the equity
market transactions. Before crediting sales proceeds it is the responsibility of the broker and the PINS cell to
determine the appropriate Tax and deduct it at source.
Top
6.1.2 What are the types of rates applicable?
TDS rate is different as per the tenure of the investment. It can be classified into
a. Long-term capital gain - If the period of holding is more than 1 year i.e. the difference between the date of
purchase and sell is more than 1 year, then the TDS rate applicable is 0 %. Before 1st Oct 2004 this rate was
10% now it is tax-free.
b. Short-term capital gain - If the period of holding is less than 1 year i.e. the difference between the date of
purchase and sell is less than 1 year, then the TDS rate applicable is 10%. Before 1st Oct 2004 this rate was
30%.
Top
6.1.3 How is TDS computed?
TDS is computed on the profit amount or the gain as per the applicable rate i.e. short term or long term.
Top
6.1.4 How is TDS deducted and the money transferred to the bank account?
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For any TDS to be deducted and money to be remitted to bank account, there are three things that have to be
verified.
1. Amount of gain = Selling price - Purchase price
2. Duration of holding i.e. long term or short term = Selling date - Purchase date
3. Source of fund for purchase i.e. NRE or NRO
Important: TDS is deducted only at the time of crediting sales proceeds.
This can be explained better with the following example:
Case: I bought 100 shares of RIL on 1st January, 2004 @ Rs.400, and sold the same on 2nd February, 2005 @
Rs.450, the TDS computation would be as follows:
Gain = Selling price - Purchase price
= 45000 - 40000
= Rs.5000
Therefore gain for TDS is equal to Rs.5000
Duration = Selling date - Purchase date
= 02/02/05 - 01/01/04
= > I year
Therefore applicable tax rate is 0%
Source of fund = NRE or NRO
Scenario 1: The sale proceeds to be credited to NRO/NRE bank account and under PINS
Since the selling is allowed under PINS account, it means the PINS cell has all the records pertaining to purchase
and entire sales proceeds (net of brokerage) will be credited to NRO/NRE bank account as TDS rate applicable is
0% and the source of fund i.e. NRE or NRO for purchase is recorded with PINS cell.
Therefore net credit to the bank account = 45000 - (0% of 45000)
= 45000-0
= 45000
Scenario 2: The sale proceeds to be credited to NRO bank account and not under PINS i.e under Non-PINS
Since PINS cell do not keep records of acquisition under Non-PINS, it will require the documents to prove the
purchase date and purchase price. Since the credit has to be done to NRO account, it will not require proof for
source of funds.
If documents are not provided, then it will deduct the maximum TDS possible and credit the remaining proceeds.
Gain = Selling Price - Purchase Price
= 45000 - 0 (since the documents to prove the purchase price is not given)
= 45000
Therefore gain for TDS is assumed to be Rs.45000
= 02/02/05 - 0
= < I year
Since purchase date is not available maximum rate will be applied i.e. 10%.
Since credit of funds is required in NRO account, no proof of source of fund is required.
= 45000-4500
= 40500
Scenario 3: The sale proceeds to be credited to NRE bank account and not under PINS i.e under Non-PINS
Since PINS cell do not keep records of acquisition under Non-PINS, it will require the documents to prove the
purchase date and purchase price and also the source of funds.
If documents are not provided, then it will deduct the maximum TDS possible and credit the remaining proceeds.
Gain = Selling Price - Purchase Price
= 45000 - 0 (since the documents to prove the purchase price is not given)
= 45000
Therefore gain for TDS is assumed to be Rs.45000
= 02/02/05 - 0
= < I year
Since purchase date is not available maximum rate will be applied i.e. 10%.
Since credit of funds is required in NRE account, proof of source of fund used for purchase is required. Till the time
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proofs are received no credit would be given to the bank account of the NRI and the monies will be parked in the
suspense account with Bank.
= 45000-45000
=0
NRI should provide the proofs latest by 3rd of next month following the month of sale, failing which the proceeds net
of 10% of sales proceeds (maximum tax possible) would be credited to the NRO bank account.
Top
6.1.5 What are the documents required for transactions under Non-PINS?
For credit to NRO account
1. Document to prove the duration (1 of the following)
a. Demat statement
b. Contract note of the purchase date
c. IPO application letter along with allotment advise
2. Document to prove the purchase price (1 of the following)
a. Contract note
b. IPO allotment advise
Note: If the duration is more than 1 year, then no document is required to prove the purchase date, as the applicable
tax rate will be 0%
For credit to NRE account
1. Document to prove the duration (1 of the following)
a. Demat statement
b. Contract note of the purchase date
c. IPO application letter along with allotment advise
2. Document to prove the purchase price (1 of the following)
a. Contract note
b. IPO allotment advise
Note: If the duration is more than 1 year, then no document is required to prove the purchase date, as the applicable
tax rate will be 0%.
3. Document to prove the source of funds (1 of the following)
a. IPO application form along with allotment advise
b. In case of dematerialization of shares, copy of original certificate along with the DRF form
Any other documents that are not mentioned above but can substantially prove the requirement can be accepted.
In case of more clarification please write to Pins@icicibank.com
Top
6.1.6 What is the TDS rate calculated in Mutual Fund fro NRI's ?
Please note the TDS rate for NRI for MF is as under:
Tax deducted at source pertaining to NRI Investors
Short Term Capital Gain
Long Term Capital Gain
Equity
15.450%
Nil
Debt
30.900%
20.60%*
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Note: These are the tax rates applicable to capital gains, in case the rate of tax is lower than 20% and if the NRI
does not have a Permanent Account Number, then for the purpose of TDS, the withholding tax rate would be 20%.
7 Corporate Benefits
Top
7.1.1 What is a Book closure/Record date?
The registered shareholders of the company are entitled to corporate benefits such as dividend, bonus, rights etc.
announced by the company from time to time. Since, the ownership of shares of companies traded on the stock
exchange is freely transferable and to enable the company to know the persons entitled to the benefits, all transfers
of securities have to be registered with the company (this is required in case of transfer of shares in physical form).
Since transfer of securities is a continuous process open any time, the company announces cut off dates from time
to time and members on the register of shareholders as of these cut off dates are entitled to the benefits. Such cutoff dates are record dates. Alternatively, the company might choose to close the register of shareholders for
registration of transfer during a specified period. All transfer requests received before the commencement of the
book closure or on or before the record date are considered for the purpose of transfer.
7.1.2 What is the difference between book-closure and record-date?
ACC announced a Book Closure (BC) for the period 6th July to 30th July'96. During this period, the company had
closed its register of security holders. This was done to determine the number of registered members who were
eligible for the Bonus 3:5 and a dividend of 40%. The process of transfer of shares was operational till 5th July'96.
The company announced a No Delivery period from 12th June to 9th July'96 before the Book Closure. During this
period, trading was permitted in the securities but the trades were settled only after 9th July. Hence, the buyers of
the shares were not be eligible for the Bonus 3:5 and a 40% dividend. The first day of the No Delivery period is
considered as an Ex - Date since the buyer of the shares is not eligible for the corporate benefits for this BC. The
same logic holds good for Record date as well, but the main difference is that in case of a record date, the company
does not close its register of security holders. Record date is a cut off date (in the above example 3rd Jan'96) for
determining the number of registered members who are eligible for the corporate benefits [Interim dividend (30%)].
7.1.3 What is an ex-date?
The first day of the 'No Delivery' period is the ex-date viz., if there is any corporate benefit such as rights, bonus,
dividend etc. announced for which book closure/record date is fixed, the buyer of the shares on or after the ex-date
will not be eligible for the benefits.
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ICICI direct.com :: FAQ

NRI Account -FAQ

What is an 'Overseas Corporate Body' [OCB]?

Does an NRI require any permission to receive bonus/rights shares?

Initial Public Offer (IPOs)

What is meant by investment through direct subscription route?

Do investments made though IPOs or Private placements come under PINS?

Then what to do with the domestic money after becoming an NRI?

Where should one write in case of any bank related queries?

What is a NRE bank account?

Can money be transferred from NRE account to NRO account?

What is a NRO bank account?

Can money be transferred from NRO account to NRE account?

ICICI direct.com :: FAQ

Repatriation And Non-Repatriation

Under what circumstances can investments made under PINS be repatriated?

Nomination / Joint Holder

Can there be any nomination to the bank account?

Can one have joint holder to the bank account?

What is the meaning of remittance?

Is dematerialization mandatory? Can I hold the shares in physical form?

Where can an NRI/PIO open a demat account?

Does an NRI need any RBI permission to open a demat account?

Do I have to keep any minimum balance of securities in my account?

Can someone operate my account on my behalf on the basis of a power of attorney?

What is Co-Holders? How many co-holders can I have?

Is there any account-opening fee?

How do I apply for a change of address of my Demat Account?

How do I close my demat account?

How will I received Corporate Benefit - Dividend, Bonus or Rights Issue?

How do I register a change in my signature with ICICI Bank Demat?

ICICI direct.com :: FAQ

Can odd lot shares be dematerialised?

How do I demat shares with Pre-Marital / Maiden names?

Depository Participant (DP)

What is a Depository? Who is a Depository Participant (DP)?

Who can become a DP?

What are the features of depository and depository participant?

Can I appoint a nominee to my account?

Can non-individuals appoint a nominee?

Can I appoint a minor as a nominee?

How do I change an earlier appointed nominee?

What are the formalities in case of No Nomination?

What are the charges for transfer in such a case?

What the requirements / documentation for the above formalities?

What is the procedure of Dematerialization?

Do NRI's need RBI permission for dematerialization / rematerialisation of securities?

How do I fill the DRF Forms?

DoWhat is the procedure to submit the certificates?

Can I check the credit of my shares in my account?

Joint Holder Related

How can I transfer the shares in case of death of a joint holder?

TIFD / IDT Booklets

What are TIFD / IDT booklets?

Where can I request for a reissue of my TIFD / IDT booklets?

What are the details to be filled in the TFID / IDT?

How do I get TIFD / IDT in emergencies?

Where do I submit the TIFD?

Is there a deadline to submit the TIFD / DIT slips?

Portfolio Investment Scheme (PINS) Account

ICICI direct.com :: FAQ

Why is PINS required?