Investment by indian residents in overseas securities

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 On a reading of the various RBI circulars on this subject it would appear that an Indian citizen/resident can freely without prior RBI permission invest in stocks and bonds abroad, up to an amount of 200,000 USD annually.
If my understanding is correct, then
1. Can a CA, banker /stock broker or a financial professional provide administrative
services to the investor and get paid for such services from the mutual fund or Investment advisory firm located overseas? The services provided are ministerial, bookkeeping and interpretative in nature and does not involve sale of or investment advisory in nature, which services may require registration with SEBI.

2. Is the investment advisory firm, which is duly registered in the overseas country be required to register with SEBI or RBI or any other governmental agency? The portfolio management firm overseas has no authority over the invested funds (in the custody of the broker) other than invest the funds under a contract with the overseas investor. This is no different that the arrangement with an investor of the country where the investment advisory firm is registered.

3. The broker/banker or CA in India is not an Agent or Representative of the overseas advisory firm. He/she receives a consolidated statement of activities from the overseas broker directly if permitted by the investor. In such an event could he be paid by the overseas advisory firm or should he/she charge the investor a fee for services?

Thank you in advance.

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2011 Issue resloved

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