Acceptance of transactions on behalf of Non-Resident Indians (NRIs)

• Notice No: 20120516-21
• Notice Date: 16 May 2012
• Category: Trading
• Segment: Mutual Fund

Mutual Fund Intermediaries are hereby informed that BSE StAR MF platform will shortly start accepting applications for subscription and redemption of mutual fund units from NRI investors. The NRIs can transact through their respective NRE / NRO accounts as applicable.

The resultant change in file structure of Client Master Upload, on account of NRI client registration is given in Annexure I.  MFIs are requested to update the same in their software / back office for processing NRI transaction, before the facility is launched.

As discussed with industry, there are certain conditions that will need to be strictly followed by the MFIs who are desirous of submitting NRI transactions. These are given below:

• It is mandatory for all MFIs / brokers to send a scanned copy of the Foreign Inward Remittance Certificate (FIRC) to the RTA (followed by a physical copy) for each and every subscription order. The necessary details of the contact person at the RTA side will be provided along with the intimation of opening the schemes of an AMC for NRI subscription/redemption.
• AMCs will not credit any redemption in cases where the FIRC certificate is not received irrespective of whether the redemption is received through the stock exchange, DP or in physical mode.
• The AMCs opening their schemes for NRI transactions will be responsible for deducting the Tax Deducted At Source (TDS) on NRI redemption and credit the net proceeds to the exchange clearing house as part of the redemption credits.
• AMCs  shall send the TDS certificate directly to the NRI investor based on the address updated in the folio (we are informed  by AMCs that the investor can avail of the TDS credit based on TDS return electronically submitted by AMCs).
• It has further been clarified that in case of off-market transaction, where the transferee is an NRI, redemptions need to be mandatorily accompanied by an FIRC certificate. Cost of acquisition for purposes of computing TDS by the AMC, shall be assumed as the NAV of the date of the off-market transfer (which is available as part of the transfer file provided by the depositories to RTAs).

In case of any queries / clarifications, please email us at [e-mail] or contact   us at:

Sr. No.	Name of official	Contact numbers
1	Suhel Plasar	22728436
2	Sunny Sureka	22728844

Khushro A. Bulsara                                                        Sunny Sureka

General Manager – Mutual Funds                               Dy. Manager – Mutual Funds

Encl: Annexure I