r2i forum

My apologies if this a FAQ -- I searched the forum for info related to this topic, but couldn't find it.

Since US NRIs are not allowed to trade online, what is the recommended way of trading Indian stocks & mutual funds? Seems like there are two options --- first one being the option of trading stocks & MFs "offline"; second one being the option of opening an account in the name of a close relative & trading in that account?

Are there any other options? What are the pros & cons of each of these options? What is the recommended approach?

Search for

http://www.r2iclubforums.com/clubvb/showthread.php?t=1809&highlight=demat

:)

Thanks for your response. The search yielded many postings & it's still confusing after reading all of them.

Is there a web-page/posting that outlines the available options for US-NRIs to start trading in the Indian stock market? If not, would anyone be kind enough to summarize the info?

Thanks in advance.

I just got back from a visit to ICICI bank. They told me that US-based NRI's cannot invest in mutual funds and/or individual stocks, and were tying to convince me into buying ULIP as that's "the only option". This doesn't sound right to me. How is everyone else investing in India?

Is the only option to transfer/gift $$$ to someone in India, and have someone trade on my behalf? What are the disadvantages of this approach?

I don't understand why US based NRIs can't trade online while I can trade online through icicidirect website. ICICI bank here in Bahrain facilitated my trading account.

I don't know the exact details, but I'm told that the current laws don't allows US-based NRI to trade in the Indian stock/mutual fund market. In fact, brokers like ICICIDirect don't let US-based NRI's open an account.

ICICI would love to have $$ investments from US based NRIs but the current US law prohibits them.

The best way to trade india stocks is may be buy ETF. You trade them like stocks and still benefit in dollars. Check out Ishares, SSgafunds, Powershares

Yes, that is the conclusion I came to as well (ahalyaa).
IPN/MINDX are my top favorites so far. Check out some of my more recent posts in http://www.r2iclubforums.com/clubvb/showthread.php?t=1476&page=2

I am not sure why we cannot invest in mutual funds, I am using PruICICI tracker and we discussed this several times, the only Issue I am aware of when we encash that investment which I am not planning to do in near future.