How to Service NRI Investor

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Loren Merritt
6 years ago
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1 AKHILESH GURURANI How to Service NRI Investor HABSG Consulting, Dehradun

2 This book is distributed free to the participants of the NRI workshop conducted by Akhilesh Gururani. This workshop is part of series of 8 workshops titled Converting defined segment of potential clients into Investors Akhilesh Gururani / Knowledge Consulting and Training Division HABSG Consulting, Dehradun i

3 Chapter 8 Investing in DSP BlackRock Schemes Frequently Asked Questions How can an NRI invest in DSP BlackRock Mutual Fund? An NRI choosing to invest in DSP BlackRock Mutual Fund currently cannot make the investment in foreign currencies. He needs to give a Rupee cheque or rupee draft from his NRE, NRO, and NRSR bank account in India. He may also send a Rupee cheque from abroad payable in a bank in India. However for an NRI to invest it is mandatory that he maintains a bank account in India. To know completely on 'How to fill up form', click here Once an NRI investor has invested and has an existing folio number, he may transact by filling-up the Common Transaction form and submitting the same to any of the Official Points of Acceptance of Transactions, along with the cheque or the bank draft in case of additional purchase. DSP Black Rock Mutual Fund has also introduced the 'Online Transacting' facility on website: You can experience the world of online convenience at a click and avail the following benefits: Get a portfolio one view across all your folios, Online Transact: Purchase, Switch, Redeem and more.., Generate account statements, track past transactions, update your personal details. 47

4 What address should be mentioned on the application form? Can NRI mention a local address for all communication? The application form of DSP BlackRock Mutual Fund has a provision for local address, but in case the NRI / FII, overseas address is mandatory. To receive communication at an Indian address, NRIs should separately communicate Indian address and their folio to the Mutual Fund. Can I get my account statements and other communication on ? Yes. You get communication instead of the physical communication on a host of information namely: Account & portfolio statement after every transaction New scheme launches Services information Dividend information Just click here to download the form and submit the same to us at our office in your city or at the nearest CAMS centre. If you already have your id registered in the folio, Click Here to opt for the delivery option. What is the mode of payment for Repatriation and Non-Repatriation Basis? NRIs/ PIOs can invest in units of the schemes on a fully repatriable basis or on a nonrepatriable basis where the principal is non-repatriable, but the income distributions are repatriable. Repatriable Basis: Payments for the purchase of the units may be made by way of Indian Rupee drafts purchased abroad, or by way of cheques drawn on the NRE/FCNR Account of the investor, payable at the city where the application form is accepted by any of our Official Points of Acceptance of Transactions. In case of DDs from FCNR, a certificate from bankers is necessary confirming that funds are from FCNR account and are repatriable. Non-Repatriable Basis: Payments for the purchase of the units may be made by way of Indian Rupee drafts purchased abroad, or by way of cheques/demand drafts drawn on the NRE/FCNR/NRO/NRSR/NRNR account of the investor, payable at the city where the application form is accepted by any of our Official Points of Acceptance of Transactions. 48

5 FII Investors: FIIs may pay for their subscription amounts by way of Indian Rupee drafts purchased abroad, or out of funds held in Foreign Currency Account or Non-resident Rupee Account maintained in a designated branch of an authorised dealer. The Indian Rupee drafts/cheques should be made payable at a city where the application is accepted by any of our Official Points of Acceptance of Transactions. The cheque or the DD should be payable or drawn on which location? The cheque or the DD should be payable or drawn on location where the application is submitted and accepted, viz. the Official Points of Acceptance of Transactions of DSP BlackRock Mutual Fund. Will DSP BlackRock Mutual Fund accept an NRI application with an overseas bank account detail? No. Overseas bank account details are not accepted as the payment is in Indian Rupees by way of cheque / direct credits. For an application for investment when will the NRI be allotted units? If an application is received before the specified cut off time on any business day, the allocation of units will be at the NAV of the business day adjusted for any entry load, if any, as per the provisions of the Scheme Information Document of the relevant scheme. All applications received after the prescribed time will be treated as having been received on the next business day and the units allotted accordingly. In case of liquid schemes, allotment will be based on utilisation of funds. Is there any load charged on switching? Yes. Applicable exit load will be charged in the switch-out scheme How does an NRI redeem his funds? Incase a NRI investor wishes to redeem from any of the open ended schemes of DSP BlackRock Mutual Fund; he can do so on any business day. The transaction slip can be downloaded from our website or detached from the end of the account statement. The Application can be submitted at any of our Official points of acceptance of transactions. 49

6 In case the investor has a PIN, he may request for redemption by calling the toll free no (for callers outside India please call on: ). For investors who have opted for online transacting facility, can do so through the same. The redemption proceeds will be directly credited to investor s bank account or despatched to the investor's registered address depending on the Bank mandate. How will the redemption proceeds be paid? The redemption proceeds are paid via any of the following modes depending on the investor's bank, completeness & accuracy of the bank details provided by the investor & his location: Direct Credit through RTGS/ NEFT: Redemption proceeds are directly credited to the investor's bank account wherein we have complete core banking account number of the investor, he has provided his IFSC code to us and that particular bank and branch has been enabled for RTGS/ NEFT. To have your complete bank details updated with us and to avail of this feature, click here right away. Cheques: In cases other than RTGS/NEFT wherein we do not have complete bank details, payable at par cheques are sent to the investors by CAMS, Chennai. Redemption proceeds and /or income distribution (if any) will be payable in Indian Rupees only. The scheme will not be liable for any loss on account of exchange fluctuations, while converting the rupee amount in any other currency. How can the Redemption Proceeds be repatriated? Depending on whether the investment was done from a NRE / FCNR account and/or a NRO / NRSR account the principal amount along with any capital appreciation may or may not be repatriated. Investments made on a Repatriable basis : The investments shall carry the right of repatriation of capital invested and capital appreciation so long as the investor continues to be a resident outside India. In the case of an FII, the designated branch of the authorised dealer may allow remittance of net sale / maturity proceeds (after payment of taxes) or credit the amount to the foreign 50

7 currency or Non Resident rupee account of the FII maintained in accordance with the approval granted to it by the RBI. In any other case, where the investment is made out of inward remittance or from funds held in NRE account of the investor, the maturity proceeds may be credited to the NRE account of the NRI maintained with the authorised dealer in India. Investments made on a Non-Repatriable Basis : Where the investment is made on a non-repatriable basis, the maturity proceeds may be credited to the NRO / NRSR account by the investor with an authorised dealer in India. Similarly, the investments in units purchased in rupees while the investor was resident of India and becomes non-resident subsequently will not qualify for repatriation of repurchase proceeds of units. The entire income distribution on investment will however qualify for full repatriation. Is the Income / Dividend on mutual fund Units repatriable? The entire income distribution on investment will qualify for full repatriation provided the member continues to be a non-resident, in terms of [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000]. Does DSP BlackRock Mutual Fund currently do a transfer to his overseas account? No. Investors need to contact their Authorised dealers for the same. Can a NRI investor appoint a Power of Attorney (PoA) who shall sign on behalf of him for his investments? Yes. In a Mutual Fund the POA has the authority to invest on behalf of the investor and sign documents for initial & additional purchases as well as request for redeeming units from the investor s folio. The NRI can give a PoA to any resident Indian who may sign on behalf of him and make the investment and transact further. While applying for purchase of units the POA holder needs to submit the original POA or a duly notarised copy should be submitted. The Power of attorney should contain the signature of both the NRI Investor and the POA holder. Only when the POA is registered, the 51

8 POA holder has the right to transact on behalf of the NRI investor and his signature will be verified before and for processing any transaction / request. Is nomination by NRIs allowed in the schemes of DSP BlackRock Mutual Fund? Yes. Can a resident Indian have a NRI as nominee? Yes. An NRI can be a nominee subject to the RBI Exchange Control Regulations from time to time. Can an NRI have a joint account in a scheme of DSP BlackRock Mutual Fund with a resident Indian? Yes. An NRI investor can have a joint holder with a resident Indian or a Non-resident Indian in a scheme of DSP BlackRock Mutual Fund. How does an NRI get updated on the performance of the schemes? As any other investor, the NRI investor can visit the website and receive all information on performance, portfolio, and returns of all schemes of DSP BlackRock Mutual Fund. He may receive daily NAVs of the schemes of DSP BlackRock Mutual Fund over by subscribing to the facility on the website. Apart from the website the investor may also gather information as well as comparison with other Mutual Fund schemes on some of the financial websites. 52

Mutual Fund Snapshot

Mutual Fund Snapshot Procedures - Transaction Related How can one invest in a mutual fund? (Fresh Purchase) After deciding on the type of scheme, the investor will have to fill in the Application form,