Accord Investments Blog – Investing in the Indian markets

Featured

NRI Investments in Mutual Funds in India: The Basics

Can Non Resident Indians( NRI) Invest in Mutual Funds in India ?

Yes, Non Resident Indians (NRI) can invest in Mutual funds in India.

Who is a Non Resident Indian ?

“A non Resident Indian ( NRI) means a person residing outside india but is a citizen of India or is a person of Indian Origin (PIO).”

Who is a person of indian Origin ?

A PIO refers to a citizen of any country if:

He/She holds an Indian passport
OR
He/She or either of his/her parents or any of his grandparents was a citizen of India
OR
The person is a spouse of an India citizen or a person referred to in (A) or (B)

Note:- The specified countries whose nationals are ineligible to grant of PIO Card are Pakistan, Bangladesh, Sri Lanka, Bhutan, Afghanistan, Iran, China and Nepal.

Further, if the applicant himself/herself or either of his/her parents, grandparents or great grandparents held the nationality of these specified countries at any time, he/she will not be granted a PIO Card.

Can a Foreign Individual invest in Mutual Funds in India?

No, only a citizen of India or a person of Indian Origin can invest in Mutual Funds in India.

How to determine that an Individual is an NRI?

In order to determine whether an individual is a non resident in india or not, his/her residential status is to be determined as per section 6 of the Income Tax Act. As per section 6 of the income tax act, an individual is said to be non-resident in India if he/she is not a resident in India.

An individual who is a citizen of India or is a person of Indian origin is deemed to be resident in India in any previous year if he/she satisfies following conditions else he/she will be treated as non-resident.

If the Income from India is below 15 Lakhs

He/she must stay in India for at least 182 days in the financial year.

If the Income from India is more than 15 lakhs

He/she must stay in india for at least 182 days in the financial year
OR
He or she is in India for at least 120 days in the financial year and 365 days in preceding 4 years.

Only applicable to India Citizen

If Income from india is more than 15 lakhs and not liable to pay tax in any other countries

In the above case he/she would be treated as Resident Indian irrespective of his/her number of days stay in India.

Is it mandatory for a non-resident Indian to have a PAN?

Yes, It is mandatory to have a PAN to invest in Mutual Funds in india.

What are the documents to be enclosed along with the NRI PAN application Form ? NRI is required to submit the copy of passport (alongwith PAN application Form) as proof of identity. He/She is also required to submit any of the following documents as proof of address:

NRI is required to submit the copy of passport (alongwith PAN application Form) as proof of identity. He/She is also required to submit any of the following documents as proof of address:

Copy of passport;
OR
Copy of the bank account statement in country of residence; OR
Copy of NRE bank account statement (showing at least two transactions in last six months period and duly attested by Indian Embassy/Consular office/high commission or Apostille or by the manager of the bank in which the account is held. The applicant may be a joint holder).

Source :- (http://incometaxindia.gov.in/Documents/PAN-NRI.htm)

What is an OCI card ?

OCI is actually a card that the government of India gives to certain foreigners who can prove their eligibility as per the criteria given below.

An OCI refers to a Person of Indian Origin who was a citizen of India on January 26, 1950 or thereafter or was eligible to become a citizen of India on January 26, 1950 or who belonged to a territory that became part of India after 15.08.1947.
A person who is a child or grandchild or a great grandchild of such a citizen mentioned above.
Spouse of a foregin origin of a citizen of india or spouse of foregin origin of an overseas citizen of india cardholder registered under section 7A of the Citizenship act 1955 and whose marriage has been registered and subsisted for a continues period of not less than 2 years immediately preceding the the presentation if application.

Note 1:- No person, who or either of whose parents or grandparents or great grandparents is or had been a citizen of pakistan, Bangladesh or such other country as the central government may , by notification in official Gazette Specify, shall be eligible for registration as an Overseas Citizen of india cardholder.

Note 2:

As per the Gazette of India (Part-I, Section-I) published on 09.01.2015, all the existing Persons of Indian Origin (PIO) card holders registered as such under the new PIO Card scheme 2002, shall be deemed to be Overseas Citizens of India Cardholder.

All PIO card holders with valid PIO cards as on 09.01.2015 are advised to apply for conversion of their PIO card to OCI card.

Source: https://boi.gov.in/content/person-indian-origin-pio

NRI Desk Support & Services

Sample Forms

•Sample NRI E Wealth Account Opening Form

•Sample FEMA Declaration Process

•Sample PO Box/NRI Declaration Form

•Sample NRI Data Sheet For E-from Entry

Did You Know Images (DYK)

PPT

•NRI E-Wealth A/C Opening

•KYC Data Fetch – (CVL KRA Client Login) Process

NJ NRI Desk Important Communications

•NJ NRI Desk Initiative E-Form Facility For NRI Client – 02/08/2021

•Process Note On KYC Data Fetching From CVL- KRA Client – 28/08/2021

•An NJ NRI Desk Initiative – A Video On Change Of Tax Status – 16/12/2021

•An NJ NRI Desk Initiative – A Video On MF Transactions For NRI – 03/01/2022

•NRI KYC Registration Along With NJ E-wealth Account Application – 05/01/2022

•An NJ NRI Desk Initiative – Short Videos – 12/01/2022

•NRI KYC Registration Along With NJ E-Wealth – 19/01/2022

• NRI KYC Registration Along With NJ E-Wealth Account – 01/06/2022

• Important Guidelines for NRI E-Wealth Account Registration – 20/06/2022

• An NJ NRI Desk Initiative – Short Video Explaining NRI E-Wealth Account Opening & Documentation – 28-06-2022

Mutual Fund Taxation For NRI Clients

What are taxable income for NRI :-

If you reside & work abroad, the NRI income tax you pay will depend on your residential status for the financial year. If you fit the Resident Indian criteria, your total global income is taxable under Indian tax laws Subject to DTAA/Tax Treaties. But if your status for the year is ‘NRI’, only the income earned or accrued or received in India is taxable.

Note :- A non resident indian has to pay tax only when the income is either earned or received in india.

Are Tax deductions available for NRIs ?

NRIs can avail specific tax deductions under Section 80C. Currently, a maximum deduction of up to Rs 1.5 lakh is permissible.

Following assets/securities to claim benefit under this section:

Principal repayment of housing loan.
Tuition Fees of maximum two children.
Premium on Life Insurance Policies.
Investment in ELSS.
Term deposit of not less than five years.

Note :- Other deductions under section 80D,80E,80TTA & 80G are also available for NRI clients.

What is the taxation pattern for NRI investing in MF ?

As per the current practice AMCs deduct the TDS at the time of redemption of the MF units. The details are furnished below:

TAX IMPLICATION
Fund Type	Holding Period	Tax Slab	Indexation Benefit	TDS Rate
Equity oriented Funds	Short Term (Less than 1 Year)	15.00%	NA	15.00%
Long Term(More than 1 Year)	10% if Capital gain is more than 100000	NA	10.00%
Debt Oriented Funds	Short Term (Less than 3 Year)	As per applicable slab rates	NA	30.00%*
Long Term(More than 3 Year)	20.00%	Yes	20.00%

Source: https://www.amfiindia.com/investor-corner/knowledge-center/tax-corner.html

Note: *Assuming that the client is falling under the highest Tax Bracket.

TDS rates mentioned here are exclusive of Surcharge & Cess.

The TDS is a flat rate as mentioned above. However, if you fall in a lower tax bracket, you are entitled to a refund. while filing your income-tax returns in India.

When TDS will be deducted from on MFs?

Short term/ long term capital gain tax (along with applicable Surcharge and Health and Education Cess) will be deducted at the time of redemption of units in case of NRI investors.

Are mutual fund units liable to Wealth tax?

No, there is no wealth Tax in India.

How will you get to know about TDS?

A TDS certificate (Form 16 A) is issued in the name of the investor mentioning the details of the transaction and the tax deducted. Once in a quarter, these digitally-signed TDS certificates are dispatched to you by the mutual fund. An Investor can also view his tax credits in form 26AS.

What about the tax applicability on the dividends?

From April 1, 2020, Income Tax Department has abolished Dividend Distribution Tax (DDT) that was levied on the dividends paid by the mutual fund. The dividends are now taxable in the hands of the unitholders. TDS rate for NRI is 20% plus surcharge and cess.

Can you set-off your capital gains with losses?

A capital gain can be set-off (netted) against a capital loss made during the year.

A short-term capital loss can be set-off against both LTCG and STCG.
A long-term capital loss can be set-off only against LTCG.

Also, you can carry forward unadjusted losses after separating them into short-term and long-term capital losses for up to eight subsequent years.

Do NRIs have to pay Advance Tax?

If the tax liability exceeds Rs 10,000 in a financial year, then it is required to pay advance tax. Interest under Section 234B and Section 234C is applicable when the advance tax is not paid on time.

Source: https://incometaxindia.gov.in/tutorials/6-interest%20payable%20by%20the%20taxpayer.pdf

When should an NRI file his return of Income in India?

NRI, like any other individual taxpayer, needs to file his return of income in India if his Gross Total Income received in India exceeds Rs 2,50,000 (Irrespective of his/her age) for any given financial year.

What is the due date for filing an Income tax Return in India?

31st July is the last date to file Income tax return in India for NRIs.

What are the measures taken by GOI to save NRIs from Double Taxation?

An NRI in receipt of income from in India, is taxable in India on such income i.e. India as a source state has the right to tax such income. However, the country of which such NRI resides, will also have a right to tax such income as it is the residence state. This situation leads to Double Taxation. In the process, the NRI will end up getting taxed twice on the same income. To overcome this, India has entered into DTAAs with various countries** which provide exemption or credit of foreign taxes paid while filing their return of income in the home country to avoid double taxation.

Note: ** List of the countries you can find in-

https://incometaxindia.gov.in/Pages/international-taxation/dtaa.aspx

Is there any capital gain applicable if any NRI gifts units to RI or other NRI?

No, there is no capital gain in case of gifting the mutual fund units or any securities.

Change Of Tax Status For Existing Clients

Can a Resident Individual modify his Tax Status to Non Resident Indian ?

Yes, tax status can be modified to NRI from RI or vice versa, subject to fulfillment of Income Tax Act ,1961 explained in chapter :Definitions & Basic Information, question number 5.

How can a client change tax status from individual to NRI or vice versa in an E-wealth account?

Please find below process to change the tax status from individual to NRI or vice versa in E-Wealth account,

Client needs to first change the tax status in KYC records. (Refer KYC change form for document checklist mentioned in Chapter-2 Question-9)
Clients should have a new Bank account. (E.g NRE / NRO / Saving bank account)
Partner needs to submit a physical form or E-form for E-Wealth account opening with new tax status with all the required documents to the nearest NJ branch.
Also, the client needs to submit the Account Closure form of the previous E-Wealth account for which securities in holding should be NIL. If units live in an old E-Wealth account, the client needs to submit DIS (Delivery Instruction Slip) to transfer the units in the new E-Wealth account.

The request shall be processed in T+7 working days from the date received at HO. So old E-Wealth will be closed and a new E-Wealth account with the new tax status will be activated as per investor’s request.

Note:

Off market transfer requests from Individual to NRE accounts are not allowed. In such a case, client can submit Rematerialization request (demat to physical) or redeem the same.
Clients can not have two E-Wealth accounts in both tax status (NRI & Resident Individual) at a time.
Clients having the units under lockin period will not be able to request the OFF Market transfer from Resident Individual Account to any NRI(NRE/NRO) status. Such units should be converted to an offline mode first by submitting Rematerialization request.

Video instruction for Change of Tax Status – Video Location Partner Desk –> E – Publications –> Digital Video Gallery –> Desk Videos –> NRI DESK

What will be the impact on the investment of a client,if the tax status changes from RI to NRI ?

Even after change in status from RI to NRI the client can continue to hold the securities which he/she had purchased as a resident Indian, on a non-repatriable(NRO)basis.

Is there any capital gain if anyone changes tax status from RI to NRI and Vice-Versa?

No, incase of any client has changed to Non resident of india (NRI) from resident indian or vice-versa, there will be no capital gain tax applied at the time of transferring all the holding from old tax status to the new tax status.

In case of any tax status change cases in NJ E Wealth, is it possible to transfer the close ended Mutual Funds like ELSS into a new E Wealth account?

Clients having the units under lockin period will not be able to request the OFF Market transfer from Resident Individual Account to any NRI(NRE/NRO) status. Such units should be converted to an offline mode first by submitting Rematerialisation request.

E-Wealth Transactions For NRI Clients

What are the different transactions available for NRI in NJ Ewealth Account?

Currently NRI can invest only in Mutual Funds from NJ Ewealth Account.

What are the different types of Mutual Fund Transactions Available on E wealth account for NRI Clients?

Please find the below details of MF transactions available regarding the types of NRI E wealth Account.

Transaction Type	NRE	NRO
Purchase	YES	YES
Redemption	YES	YES
SIP	YES	YES
SWP	YES	YES
Switch / STP	NO	YES
MARS	NO	YES
Physical Folio redemption	NO	YES

Please note MARS is not available for USA and Canada based NRI clients.

To understand in details, please check our video on “MUTUAL FUND TRANSACTIONS FROM NRI E WEALTH ACCOUNT” from below mentioned path:

Partner Desk –> E – Publications –> Digital Video Gallery –> Desk Videos –> NRI DESK

E-Wealth Transactions For NRI Clients

NRI client can transact as per transaction modes given below

Online
Mobile application
Partner initiated Transaction (Email / Whatsapp)

What are the payment modes available for NRI clients to transact in Mutual Funds from NJ Ewealth Account?

Payment Mode available in NJ EWA	Banks Available
Netbanking	HDFC,ICICI,AXIS,SBI,J&K,KVB,IDBI,CITY Union Bank, Andra Bank, corporation Bank,Karnataka Bank,Indian Overseas Bank, south indian bank, Laxmi Vilas Bank
ACH Mandate	All Banks, registered with National Payments Corporation of India (NPCI)*.
NEFT /RTGS	All Banks
Auto Debit	HDFC , ICICI , AXIS
UPI (Only for NRO)	All UPI enabled Banks

Note: To check the list of member banks with ACH facility, please visit: https://www.npci.org.in/what-we-do/nach/live-members

Can a partner initiate transactions for any NRI client from the partner desk?

Yes, partners can initiate transactions from partner desk for NRI clients , However client has multiple options such as, Ewealth account/ E wealth mobile app to authorize these transactions.

Is there any restriction of AMC for NRI investment in NJ E wealth accounts ?

Ans: Yes, There are restrictions by certain AMC’s for transactions depending on the country of NRI client currently residing in, We have updated the list of AMC along with their restricted countries on partner desk >> Client Services >> CRM >> Resources >> Stock Exchange >> Exchange related Notifications >> AMC List of Restricted country for NRI.

Why does the maximum AMC restrict US and Canada NRIs to invest in Mutual Funds in India ?

The compliance requirements in the United States of America and Canada are more stringent as compared to other nations.Under FATCA, it is compulsory for all financial institutions to share details of all transactions involving US citizens, with the US government. FATCA ensures that there is no deliberate tax evasion on the income generated by US citizens overseas. India signed the Inter-Governmental Agreement (IGA) with the USA on July 9, 2015, for improving International Tax Compliance and implementing FATCA. Due to this reason, most of the mutual fund houses stopped taking investments from the USA and Canada.

Which are the AMCs currently accepting the investments for US & Canada NRI clients on E wealth accounts ?

As on 6th September 2022, Samco,UTI,Sundaram,ITI & Quant Mutual Fund accept the investment from US & Canada clients.(Kindly refer the question no 7 for latest list of AMC for NRIs at any point of time)

Why are there only a few AMCs that offer online Mutual Fund Transactions in NJ E Wealth to NRI clients (US & Canada) when in physical form many AMC are accepting the investments?

Currently on the stock exchange only a few AMCs are accepting the transactions for US & CANADA NRI Clients. We will enable the other AMCs as soon as they start accepting the transactions on the stock exchange.

How NRI Clients can transact on existing physical folio from NJ E Wealth account ?

NRI Clients can transact their physical portfolio from E wealth account, if the E wealth account is in NRO status, However the facility is not available for NRE type E wealth account. NRE clients need to dematerialize their existing physical folios to transact from NJ Ewealth accounts.

How can NRI Clients Dematerialize their physical folio ?

NRI investors can dematerialize existing physical folios from NJ Ewealth with ESign Mode by following the path: NJ Ewealth >> Mutual Fund >> Utility >> Destatementization. Incase Esign can not be done, the client needs to submit a Dematerialization form (DRF) to the nearest NJ branch.

Are the Off market transactions allowed for NRI clients in E wealth accounts ?

Type of Transaction	NRO	NRE
Off Market – IN	Allowed	Not Allowed
Off Market – Out	Allowed	Allowed

Capital Market segment available for NRI in NJ E Wealth Account?

No currently Capital market segment is not offered to NRI Clients.

Can NRI apply for an IPO in NJ Ewealth account ?

E-wealth account does not offer a capital market for NRI Clients as it will be required to sell the securities, hence IPO is not offered to NRI clients in E wealth account.

Does any NRI needs RBI permission to invest in a Mutual Fund in India?

No such permission is required.

Can NRI invest through Foreign Currency with NJ E Wealth Account?

No, as of now in NJ Ewealth a NRI can invest from NRE/NRO banks account with Indian Currency only.

Can any NRI have a Resident Indian as Nominee in NJ E Wealth?

Yes, any NRI can have a resident individual as nominee for his investments done in India

Can NRI clients invest into PMS?

Ans: Yes, NRI clients can open PMS accounts through physical mode only.

Can NRI clients avail LAS (Loan against Security) in NJ Ewealth Account

No, currently LAS facility is not introduced for NRI clients.

Can NRI clients invest in the National Pension Scheme (NPS) from NJ Ewealth Account?

No, currently NRI clients can not invest in NPS from NJ Ewealth Account.

In case of a death case, if the Nominee is NRI and resides in the USA or Canada , is it possible to transmit all MF units as there are only a few AMCs available in NJ E Wealth for US and Canadian NRIs?

Yes,transmission of all the units of all AMCs will be done. Incase of redemption, the client needs to use the “redemption through DP” process, available in NJ E Wealth A/C.

If the nominee is foreign Resident, and does not have an OCI card, then how to process the transmissions?

In indian Mutual funds , It is mandatory to have KYC Registered for any kind of transactions. Incase KYC is/are non compliant, the nominee/nominees should complete the KYC registration process, before submitting the transmission request. If the nominee is foreign citizen by residency, OCI cards will be mandatory for the KYC registration process. To check eligibility for applying for an OCI card please refer to the question “What is an OCI Card?”

Can NRI buy Sovereign Gold Bond through NJ E-Wealth A/C?

Currently NRIs cannot invest in Sovereign Gold Bonds from NJ E Wealth A/C.

How to check the consolidated portfolio report for NRE & NRO E-wealth A/C for any NRI client?

Any NRI client may check the consolidated portfolio reports, invested through both NRE and NRO accounts.

In case any client wants to view the investments separately for NRE and NRO A/C, then the client needs to follow the below path:

Login NJ E Wealth A/C>> Report>> Mutual Fund Report>> Click on Filter and mention the required UCC ( NRE or NRO) and Apply.

Partner can also check the investments separately for NRE and NRO A/C, via following the below path:

Login Partner Desk>> Client Service>> View Client Investments>> Select E-Wealth>> Select the client UCC>> Apply>> Client’s E Wealth Desk will be opened then Click on Report>> Mutual Fund Report>> Click on Filter and mention the required UCC ( NRE or NRO) and Apply.

E-Wealth Account Opening For NRI Clients

What are the types of E wealth accounts a NRI client can apply for ?

NRI Clients can apply for two types of E wealth account.

NRE – A Non-Resident External (NRE) account is a rupee denominated account opened by an NRI to facilitate deposit of foreign currency earnings. The advantage of an NRE account is that it has high liquidity and allows for full repatriation of funds from the account to the NRI’s
NRO – A Non-Resident Ordinary (NRO) Account is a popular way for many Non-Resident Indians (NRIs) to manage their deposits or income earned in India such as dividends, pension, rent, etc.

Can securities purchased under repatriable & non-repatriable categories be held in a single EWealth account?

No. An NRI must open separate Ewealth accounts for holding ‘repatriable’ and ‘non-repatriable’ securities.

How to decide if an E wealth account will be activated using ESIGN mode or Eform/Physical?

SCENARIO	KYC-CKYC (NRI Status)	PRESENCE OF CLIENT	PROCESS
1	YES	INDIA	ESIGN
2	NO	INDIA	EFORM/PHYSICAL FORM + KYC APPLICATION
3	YES	ABROAD	EFORM/PHYSICAL FORM
4	NO	ABROAD	EFORM/PHYSICAL FORM + KYC APPLICATION

To create an E-form Kindly submit a NRI E-form data sheet and relevant document mentioned in it. To download the NRI E-form data sheet please follow the below path:
Partner Desk>> NJ Assist>> Download>> E Wealth Opening Form>> NRI E Wealth Data Sheet
To download Physical E Wealth Application please follow the below path:
Partner Desk>> NJ Assist>> Download>> E Wealth Opening Form>>E Wealth Account Opening -Individual

What are the documents required for opening an E wealth account of NRI Clients?

Sr. No.	Document Required	Documents to be submitted forESIGN	Documents to be submitted for EFORM/ Physical	Important Note
1	PAN	Soft copy of the PAN card.	A self-signed physical photocopy	If PAN is not available, please visit https://tin.tin.nsdl.com/pan/index.html to know how to apply for fresh PAN
2	KYC-CKYC application form	No Process for ESIGN incase KYC-CKYC are not in NRI Status	IF KYC-CKYC are not in NRI Tax Status, submit Physical KYC-CKYC form and physical E Wealth Application to NJ branch along with required documents	For KYC documentation kindly refer Question Number 9 in this chapter. If KYC-CKYC are already registered as NRI, no need to submit KYC-CKYC application futher.
3	An NRE/NRO Bank Proof	Soft Copy of –Signed canceled cheque copy Or, -Bank Statement with Logo or Bank Stamp	Physical copy of –Signed canceled cheque copy Or, -Bank Statement with Logo or Bank Stamp	-NRE or NRO should be mentioned on bank proof. -Upload Clear & Signed canceled cheque copy (It is advisable to upload original cheque copy). -In case the client’s name is not available on the cheque then a copy of bank statement or bank passbook has to be attached along with the signed cancel cheque copy. -Kindly ensure that all the uploaded copies are clear & visible.
4	Valid passport	Soft Copy of -Indian Passport Or, -Foreign Passport	Physical copy of -Indian Passport Or, -Foreign Passport	PIO/OCI card will be required incase of foreign passport. If PIO/OCI is not available, client needs to opt the same as a mandatory.
5	FEMA Declaration	Soft copy of the Signed DECLARATION of FEMA form.	Need to sign on the Physical FEMA form.	Address on FEMA Form to filled as updated on KYC
6	CDC (Continuous Discharge Certificate)	Soft copy	Physical photo copy	As proof of seafarers(working on Ships, Navy, Marine etc..) where client does not have any foreign address and NRI KYC registered with Indian address only.

Note:

In case of PO box number mentioned on foreign address proof , additional PO box declaration(NRI Declaration) will be required.
All documents preferably to be submitted in English Language.
As per SEBI Guidelines please provide the E-DIS Consent additionally along with E Wealth Application (EFORM or Physical). Please refer to the mail communication dated on 29th August.
Kindly download the E-DIS Consent for Individual and NRI from NJ Assist >> Download>> DP Formats

“Video Location Partner Desk –> E – Publications –> Digital Video Gallery –> Desk Videos –> NRI DESK”

Mobile & Email verifications mandatory for the NRI Clients while opening NJ Ewealth Account?

No, Mobile number verification is not mandatory however Email verification is mandatory for NRI Clients. In case NRI clients are providing Indian Mobile numbers then mobile verification needs to be done.

Can NRI use a separate mobile number in E wealth other than Aadhaar linked mobile number?

Yes, NRI can use a separate mobile number (International Mobile Number).

What if any NRI client does not have KYC and CKYC?

Partners need to submit physical KYC/CKYC form along with Physical E Wealth A/C opening Form of the NRI client at any of our NJ Branch along with the required documents.

NRI E Wealth Account can only be processed after the KYC and CKYC both get registered in NRI Status.

Clients will receive CKYC Registration Number in mail and SMS from CERSAI once the CKYC is processed. There is no open source to get CKYC details.

What are the documents required to process KYC-CKYC applications of NRI clients?

Below are the documents required for processing NRI KYC and CKYC:

KYC-CKYC Application Form duly signed.
Recent Passport size photograph of the applicant.
Pan Card Copy of the applicant.
Valid Passport Copy of the applicant. In case of foreign passport – OCI/PIO card should be submitted.
Foreign address proof:
For KRA KYC registration – any of the below
Latest 3 Month Utility Bills / Valid Rent Agreement(on stamp paper or notarized by legal authorities)/ Accommodation letter from any govt or legal authorized body like Embassy/ Foreign Driving License / Foreign Passport/ Latest Bank statement/ TAX Invoice etc.
For CKYC registration – any of the below
Latest 3 Month Utility Bills / Valid Rent Agreement (on stamp paper or notarized by legal authorities)/ Accommodation letter from any govt or legal authorized body like Embassy / Foreign valid Driving License / Foreign valid Passport With OCI Card / Employer letter on official letterhead/ TAX Invoice etc.
Indian Address Proof (Voter Card / Valid Passport / Indian Driving License / NREGA Job Card / Masked Aadhaar card)
IPV* Declaration – Need to be signed by NJ Partner

Important Note:

All the documents should be self attested.
*NRIs or PIOs who are sending their documents via courier can get the above documents attested by public notaries, court magistrate, judge, or the Indian embassy/consulate general in the country that they reside. In the case of NRIs/PIOs,where documents are being attested(OSV) by any off above entity.
The IPV declaration should be completed by the distributor, who is certified by NISM/Amfi and has complied with the know your distributor (KYD) formalities.
At NJ NRI KYC should be submitted along with the Physical NRI E Wealth Account opening application at NJ Branch.
Latest bank statement is only accepted as foreign address proof for KRA KYC not for CKYC
Employer letter is only accepted as foreign address proof for CKYC not for KRA-KYC

For further information you may visit

Can we open an E wealth Account of any Non KYC NRI client residing outside India ?

NJ Partner needs to submit Physical NRI E Wealth account opening application along with KYC application form and required documents at the local NJ Branch. All the forms and documents should be sent via courier by the client with all the required signatures and formalities. For KYC processing and Documents please refer Chapter No.2 Question No 9. For NRI E Wealth Documents kindly refer Chapter No2. Question No.5.

Why is the FEMA Declaration required from NRI clients ?

A declaration duly signed by the NRI is required that he/she has complied with and will continue to comply with FEMA regulations and other applicable laws.

Will there be any impact in case a NRI changes his/her country of residence?

Yes, there will be impact on the investments subject to below mentioned points:

Client has to modify the KYC as per the current address proof.
Client needs to submit modification of address in NJ E Wealth Account along with the foreign address proof.
Once the above processes are completed, the investment rules and regulations will be implied as per his current residing country. For the list of AMCs with the details of restricted countries please refer to NRI Helpdesk FAQ>>Chapter 3>>Question No.6

What is the Process for E wealth account opening of NRI Clients?

What is the TAT for NJ Ewealth Account Opening for any NRI?

NJ E Wealth Account will be activated in T+1 (T= Transaction Day) for NRI clients in Esign mode. In case of physical/Eform mode the TAT is T+5 once received.

What are the important check points before submission of an E wealth application for an NRI Client?

ESIGN Application	EFORM / Physical Application
NRI client needs to be present in INDIA and all details should be filled correctly on digital e wealth entry.	All required information are filled without any overwriting, and as per the supporting & Required documents
Applicants should have the Adhaar Card mandatorily and mobile number should be registered and active at the time of opening E Wealth.	Copies of supporting documents should be clearly visible & all required documents are submitted as per the required formats
All details should be verified with supportive documents, As the same can not be modified after client authorization.	All Signatures of the client should be done as per the required numbers given on application , for all the holders.
All documents soft copies should be clearly visible & all required documents to be uploaded and should be in English language.	Use the current series application form as older series applications will not be accepted.
The Tax Status in KYC & CKYC should be as NRI.	The KYC & CKYC status should be updated as NRI in KYC. If Not, kindly submit the KYC-CKYC application along with required documents with the Physical E-Wealth A/C Opening Form.
In FEMA declaration full address should be mentioned as per KYC.	In FEMA declaration full address should be mentioned as per KYC.

Why is Aadhaar Card mandatory for Esign Application?

As per the process, we are using Digilocker to fetch clients details from Aadhaar database and to take the digital signature (Esign), it will require OTP, received on clients registered mobile number with Aadhaar. However mobile numbers should be active while doing Esign and client needs to be present in INDIA while doing the Esign..

What if the Aadhaar is not available can NRI Apply for Aadhaar ?

YES, An NRI (whether minor or adult) with a valid Indian Passport can apply for Aadhaar from any Aadhaar Kendra. To find out the nearest Aadhaar kendra Click :- https://uidai.gov.in/ecosystem/enrolment-ecosystem/aadhaar-seva-kendra.html

What is the process to apply for NRI Aadhaar ?

The process is:

Visit any Aadhaar Kendra of your convenience.
Carry valid Indian Passport with you
Fill details in the enrolment form
Giving Email ID is mandatory for NRI
The declaration for NRI enrolment is slightly different. Read and sign the same in your enrolment form.
Ask the operator to enroll you as NRI.
Give your Passport as Proof of Identity.
You may choose to use your Passport itself as Proof of Address and Date of Birth proof or give some other valid document/s for this.
(As per https://uidai.gov.in/images/commdoc/valid_documents_list.pdf)
Complete the biometric capture process.
Check all details on screen (in English and local language) before you allow the operator to submit
Collect the acknowledgement slip/ enrolment slip that has your 14 digit Enrolment ID and Date & Time Stamp. You can check status of your Aadhaar from: https://resident.uidai.gov.in/check-aadhaar

Can any resident individual client update her name in an EWA account online, if she becomes NRI after marriage?

The client needs to register her KYC in NRI Tax status with after marriage name. Once the KYC status is updated in new name and tax status, she needs to send the existing E Wealth A/C Closure form, New E Wealth A/C opening form in new tax status and DIS slips for transferring all the units to new E Wealth A/C. As an additional proof, she will be required to attach her marriage certificate.

Is it acceptable if the foreign address proof is written in foreign language?

No, the depositories allow the documents written in English Language. If the client has an address proof written in foreign language the client can approach local authority (i.e. Embassy,Local jurisdiction etc) to provide an official proforma of address in english with valid stamp and sign.

Is it necessary to write a full address as per KRA in the FEMA Declaration?

Foreign Exchange Management Act or in short (FEMA) is an act that provides guidelines for the free flow of foreign exchange in India. For this purpose, the client should mention the exact foreign address on the FEMA Declaration as per KRA.

What if any NRI client is KYC Compliant but CKYC is non compliant as NRI?

The NRI client needs to submit a fresh CKYC form with all the necessary documents to any RTA ( CAMS , Karvy etc) directly or via any AMC.

However, the NRI client can submit CKYC Additional Annexure* with necessary documents at any NJ Branch to process the CKYC as NRI. Kindly find below list of documents to be submitted along with CKYC Additional Annexure Form:

1. Pan card

2. Indian OVD Address proof (Any of below)

A) Driving License
B) Passport
C) Masked Aadhaar
D) Voter ID
E) NREGA Job Card

3. Foreign Address Proof (Any of below)

A) Driving License
B) Deemed Proof of Address-
– Utility Bill which is not more than two months old of any service provider
(Electricity bill, Telephone bill,Postpaid bill, Mobile phone bill, Piped gas bill, Water bill)
– Property/Municipal Tax Receipt
– Pension Payment Orders
– Letter of Allotment of accommodation
– Tax Invoice

Note:

*All documents should be self attested.
*NJ will only accept CKYC additional annexure, where the NRI is already KYC compliant as NRI Tax status.
*Bank statements are not allowed as Foreign address Proof.
*Any query related to CKYC additional Annexure please contact your branch operation team.