Comment on NRI trading on Indian Stock Exchanges

Phani Krishna commented on 05 Oct 2016, 03:50 PM

Thanks a lot for the informative post and also answering all the questions. It helps a lot !

I am trying to open a zerodha NRO trading account but the attestation process seems to be very painful and also expensive. The UK address proof cannot be attested by embassy unless it is attested by the SPO (UK).
The indian embassy will only attest documents originated in India (Passport, PAN card and i think POA)

I am thinking of following Two options:
Option 1:
1) I must be KYC compliant already because I have a resident trading account with Angel and some mutual fund investments done recently (via resident way).
2) I have a resident bank account to fund my trading.
3) I have all required proofs to be submitted for resident account opening (adhar card, pan and passport, last year ITR/bank statements(resident account))
4) Using all documents above, open a resident account online and continue trading. Change it to Non-resident account status when I visit india in a few months (mid-2017) avoiding the hassle of attestation.

Option 2:
1) Get Passport, POA and PAN card attested by Indian embassy in UK.
2) Get UK bank statement (address proof) attested by UK local bank manager (signed as “verified with original”)
3) Get SBI NRO bank statement (contains UK address) attested by Indian Embassy if they do it.
4) Submit all the above documents along with other necessary items and open Non Resident trading account.
5) If i go by option 2, are the documents above sufficient to be considered ? do i need all proofs to be attested by SPO(UK) and then counter attested by Indian Embassy or a simple attestation of UK proof by UK banker and indian proof by indian embassy is sufficient ?

Option 1 is a temporary bypass from the legal hassle, but quick and easy fix for me. If it is possible to meet in person after a few months and convert the account to Non Resident, I feel I should take this approach.

Option 2 on the other hand is a hassle to deal with and I have to liase with many different parties making it a slow process and prone to mistakes. nevertheless, I can take this approach if thats the only way, but would like to simplify it by eliminating SPO(UK) from attestation. Just get UK proof attested by UK banker and Indian proof attested by Indian embassy and submit.

Whichever option I choose, in the end after zerodha account options, I would like to transfer my portfolio from Angel broking to Zerodha. What are the costs involved and process? Is there any attestations required for this purpose again ?

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