An individual
HUF
Body Corporate
Non-resident Indian (subject to certain conditions)

The funds would be invested in equity shares of the companies listed on the recognized stock exchange of India.
Currently, we are focusing on only equity shares and at times, we consider sitting on cash or investing in gilt securities for short time in case the right investing opportunities are not available.
We do not engage the funds of the clients in making intra-day trading or trading in future and options.

Yes, under PMS, a bank account and demat account are separately opened in your name & all investments are made in your name only. Accordingly, any income accruing out of the investment made will also be credited in your bank account and the shares will be held in the Dmat account in your name. As per the PMS agreement, the Power of Attoreny for operating the bank and dmat account will be with the portfolio manager.

Yes, it is not necessary to introduce fresh funds, existing portfolio with market value more than Rs.50 lakhs can be introduced as investment. Also fresh funds of Rs.50 lakhs or more in your newly opened bank account can be considered as a valid portfolio. As per SEBI guidelines, minimum size of the portfolio of a client has to be Rs.50 Lakhs.

There is no lock in period. However, considering the benefits of long term investments, it would be advisable to have the investment horizon period of at least 18-24 months.

You will specific username and password which can be used to login on our website and can see the portfolio statements. As per SEBI instructions, a Portfolio Manager is required to furnish performance report to their clients every 6 months. However, at Care, it is provided on a quarterly basis which will be available on the website.

The fees will be as per agreement between you and the Portfolio Manager. The fees will be payable annually depending on the growth and the value of the portfolio at the year end.

As per SEBI guidelines, a portfolio manager cannot give any guarantee towards achieving any specific returns. However, with a calculated risk and keeping downside protection in mind, we will endeavour to outperform the returns provided by the stock market indices.

Axis Bank Limited is a Depository Participant with National Securities Depository Limited (NSDL). This ensures complete safety in operations. Stock ownership always rests with the client. We are registered as a Portfolio Manager with Security Exchange Board of India (SEBI) and are governed by them through regulations and regular reporting. Certificate of Registration as Portfolio Manager is INP 000004128.

Investments are subject to market risks and there is no assurance or guarantee that the objective of the Portfolio Management Service will be achieved. The value of return on investments made may appreciate or depreciate to an unpredictable extent. Past performance of the portfolios does not indicate the future performance.

Dividend income received by virtue of holding Indian company shares is not taxable in the hands of the shareholders.

If the shares (<365 days) are sold and there is gain, then it will attract 15% capital gains tax.

Yes, NRI can purchase shares of an Indian company on a stock exchange in India, under the portfolio investment scheme on repatriation and / or non-repatriation basis. PIO is considered as a NRI and hence all the benefits / conditions shall apply accordingly.

Investment in secondary market Equity by NRI/PIO are monitored under Portfolio Investment Scheme (PIS) by Reserve Bank of India (RBI) through its Authorized Dealer (Banks). A NRI can approach an Authorized Dealer Bank (Such as Axis Bank Ltd) for opening Savings and PIS account if wants to start investments on Repatriable basis (NRE). There will be upper limits on investments as applicable from time to time.
In case if NRI wants to invest funds on Non-repatriable (NRO) basis, he can approach Authorized Dealer Bank (Such as Axis Bank Ltd) and can open Bank accounts. There will be no upper limits applicable on these investments.

Yes. Post Amendments by Reserve Bank of India in February 2016.

No. There can be only one PIS account for Repatriable Funds.

The sale proceeds, dividends etc., will be credited (net of taxes) to the NRE account in case the investments were made was on repatriation basis. In case of non-repatriation basis, the proceeds would be credited to NRO account.

If the investments are made through the Non Resident External (NRE) Rupee Account, then such investments and proceeds from such investments would be considered as on repatriation basis and can be freely repatriable.
If the investments are made through the Non Resident Ordinary (NRO) Rupee Account, then such investments and proceeds from such investments would be considered as on non-repatriation basis.
The funds from NRO account can be repatriated freely if the amount does not exceed 1 mn USD per financial year and the remitter has to submit an undertaking and a certificate by a Chartered Accountant in prescribed form.

Payment for purchase of shares on repatriation basis has to be made by way of inward remittance of foreign exchange through normal banking channels or out of funds held in NRE account maintained in India. If the shares are purchased on non-repatriation basis, the NRIs can utilise their funds in NRO account in addition to the above.

Apart from repatriation conditions as discussed in the above question, practically there is no difference as far as investments are concerned. However, the interest income earned on NRO attracts income tax deduction at source.

Transfer from NRE: Transfer of funds from an NRE is freely permitted, subject to payment of taxes, as applicable.
Transfer from NRO:
Transfer of funds from NRO account is permitted within the overall ceiling of USD one million or equivalent per financial year (April – March), subject to payment of taxes, as applicable. You need to submit Form 15CA (online application form) and 15CB (Chartered Accountant Application) to your Branch for transferring funds.

Equity shares are treated as short-term capital assets if they have been held for less than 365 days. The shares held for more than 365 days then they qualify as long-term capital assets.

Any gain arising out of sale of shares (held for >365 days) would be classified as long term capital gains and the same will be chargeable at 10 % to income-tax.

Any gain arising out of sale of shares (held for >365 days) would be classified as long term capital gains and the same will be chargeable at 10 % to income-tax.

The actual liability to pay tax for the year for NRI as against the TDS deducted from income credited to NRI could be lower for different reasons, to name a few:
Income up to the basic exemption limit, currently Rs. 2,50,000 (for FY 2016-17) (other than capital gains) earned by NRI is not liable to taxation.
The income earned may not be liable to tax but the Payer in following cases deducts the tax.
Capital losses can be set off against Capital Gains but tax is deducted at source from capital gains without setting off the losses.
Tax chargeable on income as per Double Taxation Avoidance Agreements (DTAA) with the country where NRI resides, may be lower.
In view of above, NRI should file Return of Income to claim refund of excess tax deducted.
Sometimes, NRI may incur short-term or long term capital loss on sale of investments. He can set off such loss against long term capital gain from sale of investments in subsequent year(s) provided he has filed Return of Income within the prescribed time for the year in which he has incurred loss.
Hence the NRI should file the return of Income declaring loss in such situation.