Fortune Wealth Management Company India (P) Ltd has signed a pact with Federal Bank for providing Portfolio Investment Services (PIS) to non-resident Indians (NRIs).
“This agreement would enable the bank’s NRI clients to invest in Indian equity market on repatriable and non-repatriable basis, without losing the NRI status of their savings,” said Jose C Abraham, Managing Director, Fortune Wealth Management Co.
The major distinguishing feature of PIS (which operates under licence from RBI) is that the amount invested retains its NRI status. The money invested by NRIs can be repatriated abroad whenever they sell their holdings after paying the applicable tax, said Abraham, and added that only delivery transactions are allowed under PIS. Trading in futures or stock jobbing (that is buying and selling of securities with the intent of generating quick profits) in cash market segment is not allowed. Assistance for tax payment will be provided by the bank.