Tips for NRIs to Invest Funds in Indian Stock Market

Most people are in search of additional avenues besides their regular source of income to augment their earnings and one such option is share trading. It is the general perception that it is very difficult for Non-Resident Indians (NRIs) to invest in stock market but this thinking needs to be changed as with diminishing strength of the rupee, they can tap the Indian stock market for earning money. Let’s take a look at how this can be done.

Non-Resident External (NRE) and Non-Resident Ordinary (NRO) Account Opening

Any person living in the country for less than 182 days in the current financial year and less than 365 days during the previous 4 such years is classified as an NRI and they are required to open either the NRE or NRO account for share trading purposes. The NRE which can be jointly operated with another NRI is totally tax-free while the NRO which can be held with a resident Indian is subject to income, gift and wealth taxes. An NRO account holder can repatriate only $1 million per year including the interest while there are no restrictions for NRE account holders who can repatriate the whole amount.

Portfolio Investment Scheme (PIS) Permission

This is the instrument that RBI has provided for enabling NRIs to invest in the stock market and the process to get this sanction is conducted through the bank chosen for opening the NRE/NRO account. Persons of Indian Origin (PIO) and Overseas Citizens of India (OCI) can also get this permission letter for making investments.

Demat Account Opening

The investor needs to open a demat account with a SEBI registered brokerage firm by furnishing the following documents :

• Document ensuring the NRI status: Indian passport holders need to provide their valid passport and proof of birth in India along with valid Visa (Student/ Work/ Employment or Resident permit).
• Foreign passport holders need to provide their passport displaying place of birth as India. PIOs and OCIs need to give copies of their issued cards. 
• PIS Letter
• PAN Card
• Overseas Address Proof: Foreign Passport/ Driving License/ Bank Statement or Utility Bills not more than two months old
• Bank Account Proof: Cancelled cheque of the NRE/NRO account
• Passport size photographs

This account is linked with the PIS letter issued to the person intending to conduct foreign investment in India.

Trading

One needs to allocate funds from the NRO/NRE account to the PIS account for starting the process of stock market trading. The bank notifies the brokerage firm of the transfer which starts conducting business as per the agreement with them. Whenever a purchase is completed on the client’s behalf the money used is debited from the PIS account and credited to the brokerage firm after it notifies the bank of the buy contract at the end of the day. Similarly, on completing a sale the PIS account is credited with money by the brokerage firm after it has notified the bank of the sale contract at the end of business hours.

Points To Remember

NRIs cannot hold more than 10% of stocks in any Indian listed company besides paying 15% Short-term Capital Gains (STCG) tax on any profits made on stocks sold before one year. However, there is relief with no taxes levied on any long-term gains earned and held for more than a year. Any earnings made in the Futures and Options (F&O) segment are categorized as business income by the Income-tax authorities. Anyone wishing to link both the NRE as well as NRO accounts with the demat trading account needs to get two separate IDs with the brokerage firm. 

Conclusion

NRIs looking to invest in the stock market in India can also appoint a local mandate holder for NRE account operations or give Power of Attorney to a chosen person who can carry out investment and the related paperwork. Any NRI after reading this article must feel confident about investing and earning profits from the Indian stock market.

Must Know About Intellectual Property Laws in India

It is not only that your tangible assets can be stolen, your creativity is equally at risk. A person’s creativity may result in an invention or a work of art. The list may include songs, designs or logos being used for trade, publications or any commercial activity. Such products are called intangible assets and Intellectual Property Laws protect a person’s proprietary rights over such assets.

India has been late in waking up to the hazards of intellectual property thefts and infringements. India as a member of the World Trade Organization (WTO) is under obligation to provide minimum standards of protection as stipulated under the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement. The Government of India approved the National Intellectual Property Rights Policy only in the year 2016 laying the road map for intellectual property protection. In India, intellectual property protection is covered by various laws, namely:

• The Copyright Act, 1957: It protects musical, dramatic ,literary and artistic creations as well as cinema and sound productions. Proprietary software also comes under its ambit
• The Patents Act, 1970: It protects scientific and other inventions.
• The Trade Marks Act, 1999: It protects brand names, logos, any combination of colors and other identifiers which help in distinguishing a brand from other.
• The Designs Act, 2000: This act replacing the old Designs Act, 1911 protects all components of industrial design
• The Geographical Indications Act, 1999: A product which is unique to a particular geographical location enjoys protection under this act. The unique name or any sign associated with the product is called the Geographical Indication (GI).
• The Semiconductor Integrated Circuit Layout Design Act, 2000: It protects the intellectual property rights of a maker’s semiconductor circuit layout design

In addition to these laws, confidential information and trade secrets are protected under common law.

The problem in India does not lie with the laws but in their implementation. Piracy of copyrighted material is rampant. We all have come across instances of copyrighted software usage or have seen cases of exhibition of pirated movies. There is extremely low knowledge about intellectual property rights infringement issues among law enforcement agencies. Most of the time their reaction will be that of surprise that how could a person complain of theft of an intangible asset. The responsibility lies not only with the governments (central & state) but also the people heading law enforcement agencies. Awareness programs about intellectual property can be started to make them aware about the seriousness with which such infringements should be treated.

All this takes place also because of poor awareness about Intellectual Property Laws. It is surprising how not only individuals but also organizations are not conversant with these laws and their infringements. In these times of cut-throat competition, intellectual property rights are not a luxury but a necessity. Big business houses have teams of in-house lawyers but small start-ups also need to get alert and look for required legal assistance.

The biggest deterrent for any individual or start-up while thinking about getting legal help regarding any intellectual property rights issue is the cost. This problem was identified by some investors and they started funding start-ups with the aim of creating good intellectual property portfolios. The government can also take a leaf out of their book and start a programme along these lines for the common man. The idea worth pondering over is that even if hiring a good law firm, well versed in Intellectual Property Laws may mean high costs but the returns may be even higher. Lawyers are trained to read fine print and to spot loopholes in any agreement or documentation. In case of any intellectual property rights abuse issue, they can not only get the legal system to stop it but may also get financial compensation for their clients.   

Endnote

Proprietary rights over one’s creativity is a privilege enjoyed by every citizen. Their breach is a serious offence and one should never hesitate in taking legal help when such rights are abused. Awareness about this issue is rising in our country and there are many intellectual property lawyers in India who can be of help in such cases. Ahlawat & Associates has done a lot of work in increasing awareness about this issue and also worked towards the benefit of individuals and organizations affected by IP theft issues.

5 Tips to Tackle the Property Dispute in Family

People have endeavored trustworthy relationships with their families and relatives to live calm and restful. But arguments and disputes on property and land can make relations tempestuous. Day by day, these disputes in between brothers/sisters and other family members are making a news headline, which creates a bad reputation in the society. Property disputes can acquire issues even when it is being purchased by self or by the parents, and can cause many families to suffer. Hence, dispute resolution needs the maximum attention. Here are some ways how can tackle with family members:

Disputes Over Bequeathed or Inherited Property

The land is automatically moving forward to heirs, apparent or mentioned in a will. It leads to future problems related to the land over the management and ownership of the land. Inheritance could bring along many complications of illegal transfers, possession or even sale by relatives and third parties.

Illegal transfer can happen in any using fake documents or with enactment or impersonation as well as when someone misuses the Power of Attorney.

In such problems, you can take help from other relatives through discourse or consider taking mutual concurrence, and trade or continue the joint possession of the property. If nothing works to resolve the dispute, you can take legal action with the assistance of a property dispute lawyer, who can help you in drawing, selling, negotiating and finalization of the sale and transfer of land.

Problems Over Joint Ownership

Joint ownership or tenancy is kind of a real estate ownership that permits the holders to become heirs, and create it as per requirements. If the joint owner died, the interest will instinctively move to the tenant's heirs. This will sink down the multiple disputes like debt risks, estate planning problems, multiple taxations, and split control etc. Joint Ownership comes in three forms:

1. Right of Survivorship: In this case, from the two owners, if one owner dies, the surviving owner has to show the death record and need to remove the deceased owner's name. Otherwise, they will get nothing.
2. Community Property: In this case, if one spouse dies, with the estate plan supersede state law and community property will be where the spouses want it to go.
3. Tenants in Common: In this case, if two or people are the owner of a property, then each owner hold a percentage of ownership interest in the property. PDL (Property disputes lawyer) helps you to deal with these problems as per laws.

Disputes in Property Division

With the growth of every family member, problems start occurring in routine and family members breakaway and start planning for partition of the land. Those may occur when all the members have the same share in the property. It is also called as Equitable Distribution.

For this issue, those members have to make a mutual agreement and discuss on dispute resolution. If this problem is not managed on your own, you should hire a good, experienced lawyer.

The Dispute Over Purchased Land

In real estate projects, people usually invest to purchase property together that can be shared later on. It creates the matter of discussion in future, and after some time, the matter of dispute over Real Estate Dispute. So, verbal communication does not matter much in such case. Before buying land, it is very critical to ascertain that land is free from any legal dispute, such as Pledged land, Agricultural land, Land notified for Government projects, and claim of legal heirs etc. You should hire the Real Estate lawyer and solve this problem legally.

Take Help of Police If Something Goes Wrong

Family members can get into crime related actions whenever disputes take a serious note. In that awful condition, you must take a legal action and should not keep silence. You should charge a complaint against to the nearest police station. It will assist you to keep calm and stop you further loss of the share of your property. But as per the laws, police can not involve in the property disputes. After the FIR you should hire the expert lawyer and get this problem resolved legally.

Conclusion

Property disputes are more expensive and time-consuming. But it is reliable if you can settle the matter out of the court only if the claimants agree to settle it amicably. But, if nothing goes well, and the problems start taking a different turn, take help of property dispute lawyers. 

How can a Corporate Lawyer Start New Commercial Practice?

Like every other business out there today, the legal market is also staring into the face of change, and like how every type of change brings about a new front, this particular one is bringing a new set of rules to abide by. It is the end- goal of every lawyer to venture into their entrepreneurial spirit and establish themselves with an identity of their own. About 23% of lawyers today aspire to be in charge of their own law firm, within the first 10 years of their practice, quite ambitious! If you are reading this, then it is safe to assume that you are chasing the same cart. So here is the short version- The secret behind a successful corporate commercial practice is to have all the right things in all the right places. That’s it!

If you are starting out as a lawyer opening a new legal firm, follow this comprehensive guide to be the first choice amongst corporate lawyers to hire in India.

1) Know Your Role

Knowing your role is perhaps the most crucial tip you can ever get. Whether you accept it or not, as soon as you open a legal firm, you transition into being a businessman. You will have to start thinking like one. The way of thinking will always be the reason behind your success or your failure. There will always be people who would advise against opening your own law firm. Depend on your determination to show you the right path. Be welcoming towards criticism but phase out the ‘naysayers’.

2) Decide the waters you want to explore

Determining your practice areas should be the next on your list of concerns. Your practice and the stage you stand on in the industry will determine your future. This will give you the focus you will need to set the expectations for your clients as well as for your team of lawyers. Specializing in a specific segment of practice will play a massive role in building a reputation in the market. You don’t want to be a jack of all trades and a master of none. Lastly, determine the level of clients you want to represent. Test your abilities and make a start that is comfortable for you. Do not overpromise and underdeliver.

3) Decide a business model

Since you will be a businessman, you will have to decide upon a business model that your firm will work upon. The business model you decide will shape your organizational hierarchy and your billing schemes. The traditional legal framework has lost much preference and has been taken over by the ‘rocket structure’ business model that focuses on providing value services to clients, while keeping long term goals in mind. Decide what resonates with your aspirations and define a business plan.

4) Decide your calling card and your workplace

Now that the functional aspects have been taken care of, it's time to decide what your firm will be called. It is most common to name your firm after the founders, but you should take the high road on this one if your founders’ names are too complicated of too common. You need to come up with a unique and catch name that floats over the flood of legal firms out there. Ask your friends and family.  They will give you honest suggestions and might come up with a great name for your firm. Choose an office location and manage your licenses and permits. You need to run a legal firm ‘legally’.  Get office supplies, hire people to setup your workplace and start your practice.

5) Market your services

Your law firm needs clients and clients will only hire you as their corporate lawyers in India if you let them know that you’re out there. Market your firm extensively. Get a great looking website with intriguing content. Showcase the benefits you offer and be active in networking. Go where your clients are and get referrals from your clients. That is a great way of displaying your credibility to other potential clients.

Must Know: Rights & Responsibilities of Employers and Employees

Employers are those who hire people for employment and the employees are those who work for the organization they are hired for. When employers and employees work together, they both have some rights and responsibilities pertaining to their health and safety, wages and good opportunities. All employers have the right to hire and terminate the employees according to their performance. Similarly, if an employee isn't getting what he deserves as per the organization's policies, he/she can take action against the employer. However, both should be aware of their actions. Employers can take help of employment law consultant to create equal opportunities for all. Here are some right and responsibilities of employer and employees:

Respect the Responsibilities:

This is the foremost step of every employer and employee that they should respect their responsibilities. If the employee doesn't respect their responsibilities, the employers should take some actions such as issuing the warning letter, firing employee etc. On the other hand, the employer should also be aware of their responsibility such as which kind of steps should be taken for the betterment of work-culture? Both should respect their work.

Safety Conditions:

According to the Indian Labour Law, the workplace should be safe and secure. Both the employer and employee should be aware of the labour law. Every employee must know the safety guideline while working in the organization. Safety guidelines should be provided by the employer as advised by the employment law consultants. For the safety purpose aprons, gloves, sound mufflers, etc, should be available.

Remuneration:

Every employee equally has the right to take fair payments and allowances from the organization. An employer is responsible to pay fairly to the employee and there should not be any discrimination in the payment of the employee.

Equalities on Workplace:

In any organization, both parties are responsible to maintain the equality at their workplace. An employee has the right to know about the aspects of harassment and abuses at the workplace. An employer has the responsibility to mention these terms and conditions at the workplace.

Right to Ask:

An employee has the right to ask anything about the organization from the employer. They have right to know anything that goes in and around in the organization except a couple of things related to finance while working with the company. Employers have the same responsibility to provide a detailed information about their task, duties, and rights at the workplace.

Policies at the workplace:

Organisation always works with some of the policies, which has to be followed by every employee working within its environment. These policies should be created by the employer and must be regulated for the employees. Privacy of such policies has to be maintained by the employees.

Inequality

It is a responsibility of an employee that the workplace is free from any sort of discrimination against gender, harassment, abuse, status, and pay gap. There should be strict policies that need to be adhered by the employees. Resulting in adherence should lead to either termination or any strong action.

Dressing & Activity

Every individual has its own way of dressing. An employer should give the freedom for any employer to dress according to his/her belief and tradition. However, a certain set of policies can be regulated by the employer to ensure no one is violating the work-culture.

Holidays

The employers and employees have the right to access the holidays given to them. No one has the right to tamper with these rights of either the parties. Family, personal, gusted and public holidays are present!

Respect

Every employee working in the environment should be respectful while dealing with other employees of an organization. An employer duty is to ensure that each employee should adhere to basic work ethics. Anyone violating these rules should call for a stringent action.

Entitlement

Important claims needed for the employment position like sick leave, superannuation, compensation and available insurance should be clarified by the employer to employers in any situation. It is the responsibility of the employees to not misuse any of these entitlements.

Proper Rights To Differently Abled

There are people with slight mental health problems who can work brilliantly if given good working conditions in an organization. An employer should have a specific set of rules that should favor people who are differently abled to offer them the chance and equal opportunity to work. As per the Disability Discrimination Act of 1992, any organization should make some adjustments in their policies for disabled employees so as to ensure he/she performs well. Adjustments can be made to working hours, leaves, equipment and facilities.

Preventing Harassment

In an organization, people from different groups work together. According to the Discrimination Act, any sort of verbal or physical abuse should not be tolerated by any employees. Many employers have strict guidelines to enforce this law to ensure everyone is given equal rights and no one is misusing these rights.

End-Note

It is important for employees and employers to understand their roles and responsibilities toward each other. This will ensure a good working culture of any organization. Employers should create policies that can give rights to the employers and employers should adhere to these policies without any negative consent.