Transferring investments to India.

[canadaswarup]

Well , this may be a basic question answered a million times before but I can't seem to find the answer on the new board. Please pardon a newbie..:emembarrassed:

I'am relocating to Chennai this October after being 8 years in Toronto,Canada and the question regards to the shares of U.S companies I own.

Question 1: Can I legally own U.S company shares as an Indian resident?

If the answer is Yes

Question 2: How do I transfer the shares to an Indian brokerage without actually selling them here. Can I get the actual share certificates , take them when I move and register them with an Indian brokerage? Or is it more complicated than that?

I'am holding these shares as long term investments. I just want to make sure that I can sell them when I want to and any dividends reach me.

[KRV]

Yes, you can hold US stocks even after you return to India as long as you acquired them while you were abroad (which you did).

Why do you need to transfer the shares to Indian brokerage? You should be able to hold them in your current brokerage and just give them a change of address to your Chennai address (many brokerages support foreign address).

From chennai, you should be able to log in just like you do now into your current brokerage and buy/sell shares.

[NRIInvestor2006]

Indian Brokerage houses are not registered with foriegn exchanges and hence can't hold stock certificates that trade on foriegn exchanges.

There is no problem to keep your current account as is and just change the address as the above post suggests.

If you can elaborate on wht prompts you to think along those lines that might help.

Question 2: How do I transfer the shares to an Indian brokerage without actually selling them here. Can I get the actual share certificates , take them when I move and register them with an Indian brokerage? Or is it more complicated than that?

I'am holding these shares as long term investments. I just want to make sure that I can sell them when I want to and any dividends reach me.

[canadaswarup]

Thanks guys , I do NOT want to retain my accounts with my current brokerage (E-Trade Canada) for two reasons..

1. I'am getting a ruling which declares myself as a non-resident of Canada for tax purposes. Having my investment in E-Trade Canada can create problems in that regard.

2. I'am retiring to work in an engineering college in a suburb of Chennai. I don't foresee any trips to Canada for the next 24 years. My experience with brokerages in North America makes me believe that if you have your assets with them you should be prepared to make a visit here if something gets screwed up. I cannot afford to spend $$$$ and make a trip here just because somebody in E-Trade screws up.

(Believe me , I'am NOT exaggerating! I have a stock in my E-Trade account which I bought in 2005 and am unable to sell because the $#%$$# software thinks that I don't own it. 20 phone calls , average time 30 minutes each with dumb reps hasn't helped)

After I return to India can I deal with somebody closeer to home? At least in a close timezone?

[RRK]

Indian brokerage accounts allow you to hold only stocks that trades in BSE and NSE. Foreign company stocks can not be traded in Indian exchanges and thus Indian brokerages wont hold them.

you have two options. Sell all the stocks and close your account, if you dont want to manage them from overseas (India).
OR
open US based brokerage accounts and check whether you can transfer your shares to US based brokerage account. ( something that let you sleep comfortably)

If you are pissed off with Canada based brokerages, be ready to handle indian brokerages. Customer service and Indian account policies will drive you nuts. It is not for faint hearted.

[B_Krishnakumar]

Hello,
Does the same answer apply to mutual funds too? For example, if I am
holding mutual funds in 401k/IRA accounts, can I still keep them there
after returning to India?

Thanks,
-kumar

[ggrajan]

Thanks guys , I do NOT want to retain my accounts with my current brokerage (E-Trade Canada) for two reasons..

1. I'am getting a ruling which declares myself as a non-resident of Canada for tax purposes. Having my investment in E-Trade Canada can create problems in that regard.

2. I'am retiring to work in an engineering college in a suburb of Chennai. I don't foresee any trips to Canada for the next 24 years. My experience with brokerages in North America makes me believe that if you have your assets with them you should be prepared to make a visit here if something gets screwed up. I cannot afford to spend $$$$ and make a trip here just because somebody in E-Trade screws up.

(Believe me , I'am NOT exaggerating! I have a stock in my E-Trade account which I bought in 2005 and am unable to sell because the $#%$$# software thinks that I don't own it. 20 phone calls , average time 30 minutes each with dumb reps hasn't helped)

After I return to India can I deal with somebody closeer to home? At least in a close timezone?

Hi, I understand your frustruation with e*trade. I go through the same with them. I had ESPP and Bank a/c with them. I closed bank a/c due to their huge maintenance charge; Etrade closed both a/c, and I am unable to access my ESPP. So many calls, written request... but those @#$@#$$#%$# etrade service is frustrating.

[ggrajan]

Hi, I understand your frustruation with e*trade. I go through the same with them. I had ESPP and Bank a/c with them. I closed bank a/c due to their huge maintenance charge; Etrade closed both a/c, and I am unable to access my ESPP. So many calls, written request... but those @#$@#$$#%$# etrade service is frustrating.

Dear Financial/legal gurus:
I am etrade customer. When I closed the regular bank a/c with them two years back, they closed my ESPP a/c accidentally. Now, I am not able to access the ESPP a/c throug online. They are asking the joint a/c holder (my wife) to sign and send the form to activate it. But Joint a/c was not part of espp account. However, I did get the joint a/c holder sign and sent it two weeks back, they are still not activating it. I am not able to exercise my ESPP online though they agree to do it over phone.

There was X number of shares outstanding and they closed it without any access for two years. I have talked to them so many times this year and mailed the a/c form with joint holder two weeks back and still not activated for online access. I am wondering if I can file law suit against them.
Is there any legal advantage on my side to file case against etrade?

Thanks in advance.

[RRK]

If you dont like their service, why stick to them ?

why not transfer the shares out of their account to another brokerage ?
It is not necessary for you to sell your ESPP shares only through E-Trade..