Comment on CDSL introduces PIN-based pre-authorisation for selling stocks

NRI commented on 28 May 2020, 03:21 PM

In case you do not understand ( although you must, as, you are the broker and it is your responsibility to be aware of and inform your customers of latest regulatory guidelines which apply to their accounts). Here I make it easy for you, in case I am wrong, you can inform me. 1. There is no such thing as NRI Account or NRI Bank account or NRI trading account. NRI is a person not a bank account. e.g. If an Australian opens a bank account in India, the account is not called an Australian Bank Account. 2. The bank accounts opened by NRIs are called NRO and NRE bank accounts 3. The trading account linked to NRO bank account is just any other trading account linked to resident Indian bank account, except for deduction of tax in advance. 4. I am not aware of any other restriction applicable to NRO bank linked trading accounts. Restrictions apply only to NRE linked PIS trading accounts. Here is how you you exploit this situation.You and many other brokers, by hook or crook, by using confusing language, make customers open both NRO and NRE account and then charge and operate both accounts as if they were PIS accounts. Many brokers lead customers to open upto 4 accounts when customer just could have done everything from one NRO plus trading account and if wanted to repatriate his money, could just use service of any CA for one tenth cost of opening an maintaining multiple accounts and paying charges to you and banks. But These practices of course makes you lot of money at the expense of NRI customers. IF YOU DID ALL THIS HONESTLY e.g. you charged NRI higher fees, you opened their multiple accounts, then it would be ok, but you and other brokers misinform NRI customers into doing this by various tricks e.g. you write , IT IS REQUIRED FOR NRIS, without qualifying required by whom? You or the RBI? That is wrong and illegal.

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