Products 1.Who and what is the Investment Planning Consultant? IPC - is the one point contact to all your investment needs from Navia . He will help you plan your goals, show you how to make them come true, be there with you all along the way. He will collate for you all the expert advice you need so you don't need to go to several people. He is backed by a focused research team and a committed customer services team to serve you better. Your IPC, will be your trusted partner throughout, right from the time you first walk into Navia . 2.What are the retail products & services offered by Navia ? Navia Markets Ltd. offers the following products & services Equity - Online Trading & Offline Trading (through branch network) & Derivative Trading IPO Subscription Mutual Fund Schemes Fixed Income Securities Insurance For more details contact the Investment Planning Consultant at your nearest branch or write us at clientservice@naviamarkets.com 3.Will Navia help me invest in tax efficient products ? Your tax consultants / CA's advise will help us to precisely formulate a plan that will give you the most efficient combination of products. We will help you plan your investments such that you get a portfolio of tax efficient products. 4. What do I do to become a member/avail of services and products at Navia ? How do I register? To become a member at Navia all that you have to do is walk into the nearest branch, speak to the Investment Planning Consultant, fill up a registration form and submit the relevant documentation. You will also be requested to fill up the customer agreement form to enable you to execute trades at the Stock exchange at a later stage. 5. Do I have to pay a fee to become a registered customer? Yes, depending on what products/services you wish to register for. Following is the break-up Equity - online trading (Resident) : Rs.750/- Equity – online trading (NRI) : Rs.2500/- Equity - offline trading : Rs.550 Derivative trading : Rs.250 Mutual Fund : Nil Insurance : Nil 6.What is the documentation that I need to provide for becoming a registered customer? Registration form Customer Agreement , PAN Number Address proof (ration card / passport / driving license) Bank & DP Details Signed photograph Payment of minimum margin money of Rs.750/ in case of Online clients. 7.Will Navia help me dematerialize/ rematerialize my shares? Yes, Navia through its DP Services , will help you to dematerialize /rematerialize your shares. 8.Do I have to pay for the Research Report? The standard research reports are available to customers free of cost. However specific advice / research reports are offered at minimal service charges. 9.What is margin money? Margin money is like a security deposit that you pay - which we hold until a deal is complete and all monies are settled. 10.Will Navia handle all my problems arising with the exchanges? Yes, Navia will take care of any issues that arise with the exchanges on its customers behalf e.g. short deliveries, bad deliveries etc. All you have to do is call our Client Service Department or email clientservice@naviamarkets.com. 11.Whom should I call if I need information on Navia? You can call on any of our staff at your local branch. You can locate the nearest branch by clicking on the menu “Contact Us”. 12.Who should I speak with at the branches? You can speak to your local Investment Planning Consultant, Branch Manager or any of our sales and service staff. Click here for contact details. Services 1.Where can I contact if I have a query regarding my Navia Trading Account? You can contact your nearest Navia branch. You can write to clienservice@naviamarkets.com 2. Whom can I call / contact if I have a Trade online login issue? You can contact the customer service personnel at your nearest Navia branch You can write to clientservices@naviamarkets.com 3. How long will it take to open an account? If all documentation submitted by you is in order, you shall receive your welcome kit providing you all details on your account in 3 business days. 4.How long will it take to modify details of my trading account (such as: change in address, name, etc.) The communication confirming the change in details of your trading account is sent in 48 hours of receiving the request at our end 5.Can I transfer my existing Navia trading account from one city to another or would I have to open a new account? You have permanently moved to another city and would like to transfer your Trading Account to our branch at your new location. You need not open a fresh account at the new location. All you need to do is visit the local branch and fill in a Transfer Request form. Your Account shall be transferred and communication regarding the same shall be received in 7 business days. 6.What is the procedure involved in case I wish to close my Navia trading account? In case you wish to close your Navia Trading account you can inform us regarding the same. All outstanding receipts / payments are cleared. A letter informing closure of account will be sent within 3 business days 7.Can I access my Navia trading account at multiple locations? Yes , you can access your Navia trading account across the network of Navia branches. Please ensure to keep your Investment Planning Consultant informed of your plans. You may contact your local Navia branch. 8.What services do I as a member have on the website? If you have registered on our website, the following services are available to you at no cost.You can track your MF & Equity portfolio online with our Portfolio Manager. You can ask for Stock Alerts on your e-mail id. We offer the Price Alerts, Time Alerts and Portfolio Alerts.You can also customize the Ticker to display the prices of select scrips. 9.What privileges / services do I as a registered client of Navia enjoy? If you have registered with Navia for an trading account (either offline or online), the following services are made available to you on our website. You can access your Statements online and view your contract notes and bill ledger. You can access our online Investment Advisory service and get professional advice on your portfolio and future investment plans from our panel of investment advisors. 10.How does Navia keep me updated on the Markets? The Services Desk at Navia sends a daily morning calls to all the e-mail addresses of clients available with us. This e-newsletter gives the Post Market Review, Flavour of the Week and links to other reports and updates available on the website. We also send mailers to keep you informed of the new products and services launched by us. Incase you wish to receive these mailers on your e-mail id, please Register now. NRI 1. Who is a Non-Resident Indian [NRI]? Non- Resident Indian [NRI] means a 'person resident outside India' who is a citizen of India or is a 'person of Indian origin'. 2.Who is a 'person resident outside India'? Under the Foreign Exchange Management Act, 1999 [FEMA], a person who is NOT a 'person resident in India', as defined under Section 2 (v) of the Act is considered as a 'person resident outside India'. The most important change in definition [since FERA 1973] is that the citizenship of a person no longer has a bearing in determination of residential status. 3.What is OCB? Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include-overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of atleast 60% by individuals of Indian nationality or origin resident outside India as also overseas trusts in which atleast 60% of the beneficial interest is irrevocable held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be atleast 60%. 4.Are OCBs required to produce any certificate regarding ownership / beneficial interest in them by NRI's ? Yes. In order to establish that the ownership/beneficial interest in any OCB held by NRIs is not less than 60%, the concerned body/ trust is required to furnish a certificate from an overseas auditor/chartered accountant/certified public accountant in form OAC where the ownership/ beneficial interest is directly held by NRIs. and in form OAC 1 where it is held indirectly by NRIs and further that such ownership interest is actually held by them and not in the capacity as nominees. 5.Does an NRI need any RBI permission to open a demat account? Yes, permission is required from RBI to open a demat account for investment purposes. However, RBI permission is not required if demat account is opened for dematerialising shares acquired in Primary market either through IPO or ESOP. 6.Where can an NRI/PIO open a demat account? NRI/PIO can open a demat account with any Depository Participant [DP] of NSDL. The NRI/PIO needs to mention the type ['NRI' as compared to 'Resident'] and the sub-type ['Repatriable' or 'Non-Repatriable'] in the account opening form collected from the DP. 7.If NRI/PIO desires to make investments under different schemes, can he hold all such securities in a single demat account? No. Securities received against investments under 'Foreign Direct Investment scheme (FDI)', 'Portfolio Investment scheme (PIS)' and 'Scheme for Investment' on non - repatriation basis have to be credited into separate demat accounts. Investment under PIS could be on repatriation or non - repatriation basis. Investment under FDI scheme is on repatriation basis. 8.Does an NRI require RBI permission for dematerialiation / rematerialisation of securities? No special permission is required. Holding securities in demat only constitutes change in form and does not need any special permission. However, only those physical securities which already have the status as NR - Repatriable / NR- Non-Repatriable can be dematerialised in the corresponding Depository Accounts 9.Can securities purchased under repatriable and non-repatriable category be held in a single demat account? No. An NRI must open separate demat accounts for holding 'repatriable' and 'non-repatriable' securities. 10.In case a person who is resident in India becomes a non-resident, will he/she be required to change the status of his/her holding from Resident to Non-Resident? As per section 6(5) of FEMA, NRI can continue to hold the securities which he/she had purchased as a resident Indian, even after he/she has become a non resident Indian, on a non-repatriable basis. In case a non-resident Indian becomes a resident in India, will he/she be required to change the status of his/her holding from Non-Resident to Resident? Yes. It is the responsibility of the NRI to inform the change of status to the designated authorised dealer branch, through which the investor had made the investments in Portfolio Investment Scheme and the DP with whom he/she has opened the demat account. Subsequently, a new demat account in the resident status will have to be opened, securities should be transferred from the NRI demat account to resident account and then close the NRI demat account. 11.Can NRIs invest in shares, debentures and units of mutual funds in India? NRIs are permitted to make direct investments in shares/ debentures of Indian companies/ units of mutual fund. They are also permitted to make portfolio investments i.e. purchase of share / debentures of Indian Companies through stock exchange. These facilities are granted both on repatriation and non-repatriation basis. 12.Can an NRI purchase securities by subscribing to public issue? What are the permissions/approvals required? Yes. The issuing company is required to issue shares to NRI on the basis of specific or general permission from GoI/RBI. Therefore, individual NRI need not obtain any permission. 13.Does an NRI require any permission to receive bonus/rights shares? No. 14.What is Portfolio Investment Scheme? Under this scheme, NRIs are permitted to acquire shares/debentures of Indian companies or units of domestic Mutual Funds through the stock exchange(s) in India. 15.What is Portfolio Investment Scheme? Under this scheme, NRIs are permitted to acquire shares/debentures of Indian companies or units of domestic Mutual Funds through the stock exchange(s) in India. Investment can be made both on repatriation or non-repatriation basis. For making investment on repatriation basis, it will be necessary to make payments by way of inward remittance or by debit to the NRE / FCNR account of the NRI / PIO. Investment on non-repatriation basis can also be made by way of inward remittance or by debit to the NRE / FCNR / NRO accounts. The sale proceeds of the repatriable investments can be credited to the NRE / NRO accounts of the NRI / PIO at the option of the investor, whereas the sale proceeds of non-repatriable investment can be credited only to NRO accounts. The sale of shares will be subject to payment of applicable taxes. 16.What is the procedure for making applications for Portfolio Investment Scheme? The application is to be submitted to a designated branch of an authorised dealer in India in the prescribed form. No permission is required from RBI. Reserve Authorised dealer issues general permission for a period of five years, which can be renewed further by designated branch, concerned for a period of five years at a time. 17.What is a designated branch? Reserve Bank has authorised a few branches of each authorised dealer to conduct the business under Portfolio Investment Scheme on behalf of NRIs. These branches are the main branches of major commercial banks. NRIs will have to route their applications through any of the designated authorised dealer branches who have authorisation from Reserve Bank. 18.Whether NRI can apply through more than one designated branch authorised dealer? No. NRI can select only one authorised dealer branch for the purpose of investment under Portfolio Investment Scheme and route the transactions through the branch designated by the authorised dealer 19.Can an NRI purchase or sell shares or convertible debentures on a stock exchange in India on repatriation or non-repatriation basis under portfolio investment scheme? NRIs / PIOs can purchase / sell shares / convertible debentures of Indian companies on Stock Exchanges under the Portfolio Investment Scheme. The rules relating to this scheme are as given below: Shares purchased under PIS on Stock Exchange shall be sold on stock exchanges only. Prior approval of RBI is required if such shares are proposed to be transferred either by way of gift or under private arrangement to a non-resident/ resident. These trades can be done only through a registered broker on a recognised stock exchange NRI shall designate a branch of an authorised dealer and route all his/her transactions through this branch of the authorised dealer NRI takes delivery of the shares purchased and gives delivery of shares sold. NRI shall abide by the directions given by RBI/SEBI or such authority if the transaction results in the breach of ceilings stipulated for NRI holding in the company/scheme. The sale of shares will be subject to payment of applicable taxes An NRI or a PIO can purchase shares up to 5% of the paid up capital of an Indian company. All NRIs / PIOs (also the OCBs who had purchased shares under the earlier scheme) taken together cannot purchase more than 10% of the paid up value of the company. (This limit can be increased by an Indian company to 24% by passing a General Body resolution) 20.Can an NRI nominate or be nominated in depository account? Whether such nominee can be person resident in India? Yes. 21.What are the tax obligations applicable to NRIs? Income on investments (capital gains) forming part of sales proceeds is subject to Capital Gains tax. The rate of tax depends upon the period of holding. Currently the tax rate applicable for short-term capital gains is 10% and long-term its NIL. 22.What is "Tax Deduction at Source (TDS)" on capital gains arising out of sale of holdings by NRIs? As per Indian tax laws, all the capital gains arising out of sale transactions are subject to tax. In the case of NRIs, the capital gain arising out of sale transaction is subject to deduction of tax at source (TDS) i.e. at the time of crediting the sale proceeds to the respective NRE/NRO account by the concerned bank branch. Accordingly, the concerned bank shall determine the tax liability and tax will be deducted at source. The concerned bank, which has deducted tax at source, shall issue a certificate in this regard. 23.Is TDS deductible if the sale proceeds are credited to NRO Bank account? No TDS is deductible if the sale proceeds are credited to NRO Bank account. However TDS is applicable for sale shares bought through the PIS Account. 24.What is 'Double Taxation Avoidance Treaty'? India has entered into Double Taxation Avoidance Treaties with certain countries under which NRIs who are residing in any of these countries, are liable to pay income tax at the rate applicable in India or in the country where they are residing, which ever is lower. 25.How can NRIs, residing in any of these countries, take benefit of 'Double Tax Avoidance Treaty'? To avail benefit of lower rates of tax as per double taxation avoidance treaty entered in by India, NRIs need to submit the Residency Certificate issued by Tax Authorities of the country of his residence. These documents should be submitted to the designated bank branch at the time of opening the bank account or subsequently. New TDS rate shall be applied only after the acceptance of the Residency Certificate by the designated bank.