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.

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.

How An International Lawyer Can Help You To Resolve Disputes

The development of international relations between citizens and legal entities is taking new shape every month. The volumes of trade and flows of capital and human resources are constantly growing. Nevertheless, despite favorable growth, problems do emerge which makes it difficult for the involved parties to conduct their operations as usual.

If you have the presence of property/business in the territory of another or several states and are involved in international disputes (which falls under foreign jurisdictions), then you can seek legal assistance from an international lawyer. He/she can solve your disputes/problems legally and help you to perform your business, financial and other types of activities smoothly. Have a look at some ways how an international lawyer can help you: