Below are applicable for each NRI customer who is opening NRE PIS SB account or NRO Securities SB account through online journey:
1) PORTFOLIO INVESTMENT SCHEME (NRE):
We hereby appoint HDFC Bank as a Designated Bank for PIS. We hereby advise that we have read and understood the terms and conditions as specified under the portfolio Investment
Scheme and hereby declare that we agree to comply with all statutory formalities under the PIS scheme from time to time. We confirm that as on date, we do not hold PIS PERMISSION on repatriable basis with any other bank.
I/We hereby agree:
• To open the NRE PIS Savings account with designated branch to acquire equity instruments of a listed Indian company on repatriation basis, on a recognized stock exchange in India. The transactions related to this NRE PIS Savings account will be routed only through designated branches.
• I/We agree that if the PIS account/PIS Permission is transferred from any other bank to HDFC Bank, then I/We shall furnish a “No Objection Certificate” from my/our present banker along with a holding statement (having details of scrip name, date of purchase, cost of purchase, quantity) as specified by HDFC Bank along with a latest copy of the demat Statement of securities.
• That the NRE PIS accounts and PIS PERMISSION will be held with only one bank at any given point in time.
• The NRE PIS account will not be used to route any other transactions besides transactions related to the purchase and sale of Equity instruments. Any other transaction will be routed through the regular NRE savings account held with the bank.
• To submit the complete details of all shares held by me which was purchased from the Primary market as a non-resident on repatriation basis in the formats as specified by the bank.
• To do only delivery-based transactions and not indulge in speculative transactions. To purchase and sell shares of an Indian company, through registered broker on a recognized stock exchange.
• To place purchase orders only if the Bank can earmark sufficient balance covering the purchase consideration of securities and other applicable charges in client's Bank account.
• To report to the Bank all transactions done directly through stockbrokers on T+0 OR T+1 after trading, by submitting original broker contract notes to PIS designated branch only where PIS account is maintained. Details like, PIS Permission number, PIS account, demat Account (DP and Client ID), purchase payments (cheque no, date of cheque, gross amount of purchase) will be mentioned on purchase contract note and sale contract note. • I/We agree that my stock broker will share all the buy and sell trades on our behalf on daily basis to the bank and bank’s empaneled vendor tax consultant for further reporting into the PIS ledger.
• Payments for shares/ receipts from the broker on account of sale of shares will be made against the amounts specified on the bills and no adjustment of purchases against sale transactions will be done even if various sale and purchase transactions are doing during the same period.
• To deposit all payment instruments (cheque/DD etc.) received from a stockbroker on account of sale of securities for crediting in appropriate account along with complete details like PIS Permission number, PIS account, Trade date and the bills at PIS designated branch where PIS account is maintained.
• The purchase of equity shares/convertible debentures in each company with repatriation benefits shall not exceed 5 % (or as prescribed by Reserve Bank of India from time to time) of the paid-up capital of the company, subject to an overall ceiling of 10 % (or as prescribed by Reserve Bank of India from time to time) All consequences of failure in such compliance, including any losses arising out of reversal of transactions shall be to our account.
• The bank will recover its fees /charges applicable for PIS by the debit to the NRE savings (non-PIS) account held.
• To allow the bank to compute the capital gains tax on sale transaction done to respective stock brokers. The bank will deduct the capital gain tax as application on each transaction and the sale proceeds net of tax will be credited to the designated NRE PIS savings bank account within 48 working hours after receipt of clear funds from broking firm.
• The sale made will be adjusted on First in First Out basis (FIFO) at the PIS permission number level (for e.g. if a customer has multiple demat accounts or multiple NRE PIS Saving account under one PIS permission number ) - FIFO will be applied across them while calculating capital gains for the purpose of calculating capital gains .If any pledged shares are updated in the NRE PIS ledger then the same will also be considered for computation of capital gain as a part of FIFO basis.
• I / We will file the Form FC-TRS through my authorized Dealer (Bank) on sale of equity shares (acquired under FDI/ESOP) on stock market floor.
• HDFC Bank will only monitor the accumulated capital gains for each PIS trade reported to the Bank for the purpose of levying surcharge as per the slab. TDS rate will be charged accordingly while crediting the sale payout into NRE PIS Savings Account / NRE Savings Account.
• I confirm to open the additional NRE PIS Saving bank account by giving me extension to my existing NRE PIS permission number held under my PAN to deal with other stock brokers with common PIS ledger maintained at bank for computation of capital gain tax under one PAN for multiple brokers trades.
• I/We agree that my stock broker share all the buy and sell trades on our behalf to on daily basis to bank and bank’s empanelled vendor tax consultant for further reporting into the NRE PIS ledger maintained in my name.
• Capital gains tax will be calculated without the indexation method and will not be adjusted on exchange rates
• The bank will not undertake any monitoring and follow up of corporate actions associated with any holdings of the account holder & also will not undertake any follow up for deliveries of any shares purchased.
• To ensure before placing / conveying Sale orders that I/We actually hold free shares (shares pending demat or locked /pledge are not free shares).
• Shares purchased in the primary market, shares under corporate action are not to be considered under the PIS scheme. Therefore, any sales proceeds pertaining to NON PIS Scheme will be credited directly into your NON -PIS account. However, in case the sale contract consists of PIS as well non PIS shares, then the sale proceeds will be credited to PIS account only.
• In case of a delay or default in providing details pertaining to shares within the prescribed time, I/we shall be solely responsible for the following consequences:
(a) Any impact on FIFO method of capital gains computation for such transactions and/or subsequent transactions (b) Any delay in credit to my PIS/Savings Bank account.
• I/We agree to adhere to the RBI/ NSDL/ CDSL guidelines and restrictions on purchase of shares (Banned / Caution/ Breach/ Red Flag) and shall refer RBI /NSDL/ CDSL website before dealing on recognized stock exchange.
• I/We shall not purchase Breached/ Red flag scrips that are prohibited by RBI. In case of default, I/We shall arrange to sell the same immediately and losses and applicable charges, if any, on account of such transactions will be borne by me/us and I/we shall be responsible for legal consequences, if any. Further, the First in First out (FIFO) method of Capital Gain computation shall be affected and accordingly Tax shall be deducted at source.
• I/We shall intimate the bank about any change in the status of security holdings on account of Corporate Actions or otherwise (IPO/FPO, Rights, Buy Back, ESOP, Inheritance, Gift, off-market transactions etc.) to facilitate proper reporting under NRE to RBI and Capital Gain computations as per the Income Tax Act, 1961.
• As an NRI /PIO, under PIS facility I/we will not invest in any Prohibited sectors as per FEMA guidelines updated time to time.
• In case I wish to avail of DTAA benefit; I will submit the required documents in the beginning of every financial year.
• Any changes such as a change in the residential status/name/address/email ID/telephone numbers/Contact person etc. in any of my Accounts shall be intimated to the Bank Immediately. The Bank shall comply with instructions and procedures as laid down by Regulatory Authorities for PIS from time to time. I /We shall indemnify and hold harmless the Bank against any direct losses costs or claims which Bank might incur/suffer as a result under PIS. I/We specifically agree to hold the Bank harmless from any and all claims and agree that the Bank shall not be liable for any loss, actual or perceived, caused directly or indirectly by equipment failure, communication line failure, system failure, Internet failure, securities failure on the Internet, unauthorized access or any other problem technological or otherwise, that might prevent the client from executing or the Bank from executing an order or other conditions beyond Bank's control.
Below mentioned are HDFC Bank PIS Fees/Charges where in Broking/Trading Account is held with Stock Brokers other than HDFC Securities Ltd.
Sr. No. | Fee Heads | Fees (in INR) | 1 | PIS approval issuance fee (onetime fee) | 1000 | 2 | Annual account maintenance fee | 1000 | 3 | PIS Reporting Charges |
|
| Purchase | 100 per contract | Sale | 100 per contract | Purchase / Sale on same contract | 200 per contract | 4 | Processing of sale proceeds purchased through Secondary market under PIS - Transaction Fees |
|
| Transaction value up to Rs 50000
| 100 | Transaction value between Rs 50000 to 300000
| 250 | Transaction value above Rs 300000
| 500 | 5 | Processing of sale proceeds purchased through Primary market as a resident / non-resident / inherited (by a customer registered for PIS) |
|
| Transaction value up to Rs 50000
| 200 | Transaction value between Rs 50000 to 300000
| 400 | Transaction value above Rs 300000
| 600 |
FEE SCHEDULE FOR PORTFOLIO INVESTMENT SCHEME – NRI CUSTOMERS
a. Charges/ service standards are subject to revision at the Bank's sole discretion and as informed by circulars sent by ordinary post
b. Account Maintenance fees are non-refundable and levied on a financial year basis.
c. Fees for issuing approvals and annual account maintenance fee will be debited annually, while the fees for processing the sale proceeds will be debited each time the transaction is processed.
d. All fees will be debited to the designated savings account.
e. The above charges are independent of the Demat account charges and the brokers fees.
* Plus, service tax /GST as applicable
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2) NRO Securities Account –(NON-REPATRIATION)
As per the Foreign Exchange Management Act (Transfer or Issue of Security by a person Resident outside India) (Amendments) regulations 2016, I/we would like to purchase and sale securities on non-repatriation basis.
I/We hereby agree:
• To open the NRO Special Securities Saving account with designated branch to acquire securities or units in secondary market on non-repatriation basis. The transactions related to this NRO Special Securities Saving account will be routed only through designated branches.
• To submit the complete details of all shares held by me which were purchased during resident tenure or were acquired from primary / secondary market as a non-resident on non-repatriable basis, in the formats as specified by the Bank.
• To do only delivery-based transactions and not indulge in speculative transactions. To purchase and sell shares of an Indian company, through registered broker on a recognized stock exchange or outside it.
• To make payment as per purchase value of contract note from the NRO Special Securities Saving account/NRO saving account.
• To share the details with the Bank of all purchase and sale transactions done made directly through stockbrokers or outside on T+0 OR T+1 after trading, by submitting original broker contract note/documentary evidence to designated branch only where the NRO Special Securities Saving account is maintained.
• Details like, Unique reference number allotted by the bank, NRO Special Securities Saving account number to be mentioned on purchase/sale contract note.
• I/We agree that my stock broker shares all the buy and sell trades on our behalf to on daily basis to bank and bank’s empanelled vendor tax consultant for further reporting into the NRO ledger maintained in my name.
• Payments for shares/receipts from the broker on account of sale of shares will be made against the amounts specified on the bills and no adjustment of purchases against sale transactions will be done even if various sale and purchase transactions have been done during the same period.
• To allow the Bank to calculate the Capital Gains Tax on transactions done through respective stock broker. The bank will deduct capital gains tax as applicable on each transaction and the sale proceeds net of tax will be credited to NRO Special Securities Saving account within 48 working hours after receipt of clear funds from broking firm.
• I/We confirm that all investment made by me/us in securities through any mode/other bank will be confirmed and updated to Bank for computing capital gain tax on sale of such securities. The computation of tax will be done without indexation benefit.
• The sale made will be adjusted on First in First Out basis (FIFO) at the Unique reference level (for e.g.: if a customer has multiple demat accounts or multiple NRO Special Securities Saving account under one Unique ref. no.) - FIFO will be applied across them while calculating capital gains for the purpose of calculating capital gains .If any pledged shares are updated in the ledger then the same will also be considered for computation of capital gain as a part of FIFO basis.
• To deposit all payment instruments (Cheque/DD etc.) received from a stockbroker on account of sale of securities, for crediting in special NRO account along with complete details and the bills for trades executed on non-repatriation basis at designated branch where the NRO Special Securities Saving account is maintained.
• I/We confirm that any sale proceeds that are credited to NRO account will be net of applicable taxes only. In case any sale proceeds credited directly to this account, I/We will be paying applicable taxes separately at my end. I/We shall indemnify and hold harmless the Bank against direct losses, costs or claims which Bank might incur/suffer as a result under this facility.
• Sales proceeds (net of applicable taxes) of securities or units acquired under this schedule shall be credited only to NRO Special Securities Saving account irrespective of the type of account from which considerations for acquisition were paid and sell of primary shares, Bonus shares, Rights shares acquired will also be credited to NRO Special Securities Saving account after deducting applicable capital gain tax.
• The bank will recover its fees /charges applicable for this facility by debiting the NRO Special Securities Saving/NRO Saving bank account.
• The Bank will be able to set off losses against capital gains for financial year on equity shares only. The bank will update purchase and sale contract notes details on FIFO basis and compute capital gain tax (without indexation method) accordingly, even if trades have been executed through multiple brokers.
• Capital gains tax will be calculated without the indexation method and will not be adjusted on exchange rates.
• The bank will not undertake any monitoring and follow up of corporate actions associated with any holdings of the account holder & also will not undertake any follow up for deliveries of any shares purchased.
• To ensure that before placing / conveying sale orders I/We actually hold free shares (shares pending for demat or locked /pledge are not free shares).
• In case of a delay or default in providing details pertaining to shares within the prescribed time, I/we shall be solely responsible for the following consequences:
• Any impact on FIFO method of capital gains computation for such transactions and/or subsequent transactions
• Any delay in credit to my NRO Savings/ NRO Special Securities Saving bank account.
• As an NRI /PIO, I/We will not make any investment under this schedule, in equity shares, convertible preference shares, convertible debentures, warrants or units of a Nidhi company or a company engaged in agricultural/plantation activities or real estate business or construction of farm houses or dealing in Transfer of development rights as amended from time to time or any restricted sector, as declared by Govt of India/RBI from time to time.
• I/We will follow guidelines/directives given by various government agencies on time to time.
• In case I/We wish to avail of DTAA benefit, I/We will submit the required documents in the beginning of every financial year.
• I/We shall immediately inform the Bank about any change in any of my accounts such as change in residential status/name/address/email ID/telephone number/contact person etc.
• I confirm to open the additional NRO Special Securities Saving bank account by giving me extension to my existing Unique reference number held under my PAN to deal with other stock brokers with common ledger maintained at bank for computation of capital gain tax under one PAN for multiple brokers trades.
The Bank shall comply with instructions and procedures as laid down by Regulatory Authorities from time to time. I /We shall indemnify and hold harmless the Bank against any direct losses costs or claims which Bank might incur/suffer as a result of this facility.
I/We specifically agree to hold the Bank harmless from any/all claims and agree that the Bank shall not be liable for any loss, actual or perceived, caused directly or indirectly by equipment failure, communication line failure, system failure, Internet failure, securities failure on the Internet, unauthorized access or any other problem technological or otherwise, that might prevent the client from executing or the Bank from executing an order or other conditions beyond Bank's control.
Below mentioned are HDFC Bank PIS Fees/Charges where in Broking/Trading Account is held with Stock Brokers other than HDFC Securities Ltd.
FEE SCHEDULE FOR INVESTMENT IN SHARES ON NON-REPATRIATION BASIS:
Sr. No. | Fee Heads | Fees (in INR) | 1 | NRO Securities Ledger creation charges (onetime fee) | 1000 | 2 | Annual Ledger maintenance fee | 1000 | 3 | Updation of Ledger: |
|
| Purchase transaction per trade date
| 100 | Sale transaction per trade date
| 100 | Purchase / Sale on same contract
| 200 | 4 | Processing of sale proceeds purchased through secondary market -Transaction Fees: |
|
| Transaction value up to Rs 50000
| 100 | Transaction value between Rs 50000 to 300000
| 250 | Transaction value above Rs 300000
| 500 | 5 | Processing of sale proceeds purchased through Primary market - Transaction Fees: |
|
| Transaction value up to Rs 50000
| 200 | Transaction value between Rs 50000 to 300000
| 400 | Transaction value above Rs 300000
| 600
|
a. Charges/service standards are subject to revision at the Bank's sole discretion and as informed by circulars sent by ordinary post
b. Account Maintenance fees are non-refundable and levied on a financial year basis.
c. Fees for issuing NRO security ledger creation and annual account maintenance fee will be debited annually, while the fees for processing the sale proceeds will be debited each time the transaction is processed.
d. All fees will be debited from either from the NRO savings or Special NRO Savings account.
e. The above charges are independent of the demat account charges and the brokers fees.
* Plus, service tax /GST as applicable
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