investment / repatriation - contradictory information received from banks..

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park
Posts: 2
Joined: Mon Mar 21, 2011 2:44 am

investment / repatriation - contradictory information received from banks..

Post by park »

Friends,
Great forum, very interesting read..
I have been researching a simple question for about a month, and have received several contradictory information from various Banks (ICICI, HDFC from their websites or offices in India). Here is my situation:--
I am an NRI living in the USA. My family has worked with a financial portfolio manager in India who invests our money and has historically given us good returns. Now, How do I send money from USA to him for investment for about 2 yr timeframe, and how can I repatriate it back to the US ? Which bank accounts do I need ?
Some banks said it just cannot be done as you are not buying MF's or stocks directly, and others said money cannot be repatriated back..
I am sure some of you may know the answer to this who can help me..
Thank you much.
Desi
Posts: 11421
Joined: Tue Dec 19, 2006 9:12 pm

investment / repatriation - contradictory information received from banks..

Post by Desi »

park;376781Friends,
Great forum, very interesting read..
I have been researching a simple question for about a month, and have received several contradictory information from various Banks (ICICI, HDFC from their websites or offices in India). Here is my situation:--
I am an NRI living in the USA. My family has worked with a financial portfolio manager in India who invests our money and has historically given us good returns. Now, How do I send money from USA to him for investment for about 2 yr timeframe, and how can I repatriate it back to the US ? Which bank accounts do I need ?
Some banks said it just cannot be done as you are not buying MF's or stocks directly, and others said money cannot be repatriated back..
I am sure some of you may know the answer to this who can help me..
Thank you much.


Have you perused thru some threads in finance, Indian finance sections? Have you used the Google search box above in this forum to type in key words and search? There is a lot of information that is already discussed, a little search would help.
park
Posts: 2
Joined: Mon Mar 21, 2011 2:44 am

investment / repatriation - contradictory information received from banks..

Post by park »

Thanks for the reply.
Yes I have researched this item to death, and there is no clear answer.. I was told that The conventional route of "NRE - to - NRO - to planner - and repatriate back" will not work, as the ICICI and HDFC told me the gains would not be able to repatriate as you are not buying MFs or stocks directly. They even said i cannot even buy individual stocks with the intent to repatriate the (principal + profits).
The only way I think may work is I transfer money to my parents as a gift, they invest it, pay the taxes on the gains as if it were their income, and then wire transfer the money (principal + gains) back to me using western union etc. , or bring the money in cash ($10,000 max per individual)with me to US. -- This process seems kind of unethical.
The problem is that I want to do everything in my name, legally, paying taxes in india + US (if reqd), but I dont see any easy way to do this...repatriation from NRO, per ICICI and HDFC is not easy / possible for stock market investments.
please advise if i am missing something.
cmk786
Posts: 410
Joined: Tue Feb 16, 2010 2:48 am

investment / repatriation - contradictory information received from banks..

Post by cmk786 »

I have seen this topic is been discussed already in several posts but I am not sure how far it works because I never tried it myself. When the time comes for me to repatriate. I will try one of means discussed in several of the threads under this topic wich says like this.
CONVERT RUPEES TO US $$$$$

1. For repatriation of funds, you are required to follow the procedures which are briefly mentioned herein.
.01 Submit an application in prescribed form.
.02 Submit necessary form A-2.
.03 Submit Chartered Accountant's Certificate in prescribed form.
.04 Provide necessary documents pertaining to sale and purchase of properties.
2. Sale proceeds will be repatriable, subject to the purchase being made as per provisions laid down under the Foreign Exchange Regulation Act, 1973 (FERA) or Foreign Exchange Management Act, 1999 (FEMA).
3. Banks are authorized to repatriate the funds and you do not need any approval of Reserve Bank of India or any other Authority.
4. As for experience , as professional advisors, our Firm is availing repatriation facility quite often and the same is granted in normal course , quite easily.

Best Wishes,
RAJESH H DHRUVA
If this won't work than me, my wife, son and daughter-in-law bring $10k each + I buy 24 carrot gold. This way I can bring around $100k on each trip. I hope this means of converting rs to $$ will work and leagal. My philosopy is earning/saving money is the very hard part and once we have the wealth than leagally converting to which ever form we want is not impossible may be a bit hard.
krivan1
Posts: 108
Joined: Mon Feb 08, 2010 12:43 pm

investment / repatriation - contradictory information received from banks..

Post by krivan1 »

This is what I had done recently. I opened account with Funds India and bought MFs from the amount in the HDFC NRE account. When I sold the MFs, the money with profit was credited into the NRE account. The bank had no problem for repatriation as long as the money is there in NRE account. Looks like this process is established for equity & MF investments in India. Not sure for land & gold purchase repatriation.
As long as you make sure the funds flows out and comes into NRE account, I presume repatriation becomes easy. But if we go through NRO, am not sure how it works. I have no idea about repatriation if the funds has to be transferred to resident for investment and back & forth.
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