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POSTED BY ON June 8, 2012 12:27 pm COMMENTS (9)
Hi
I was an NRI some months back and now my status is Indian Resident…
I have 5 monthly SIP’S running from my NRO account ….
I will have to change the status in my account and automically my Nro account will change…
My SIP’S will be affected by this…
So what should I do…I mean what is the correct procedure ..do I have to go to the bank first or AMC’S First..
And how to coordinate between the banks and Amc’s so that my SIP’s are not effected..
What r those procedures and in which sequence should I take them…pls explain step by step..
Thanks..
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Dear Sir,
First step you will have take is to change your account status from NRO to normal saving account and than you will have to approach each fund house in which you are holding funds with requisite documents it may very bit according to fund house and change your status from NRI to individual.Please remember you will have to change your KYC status also from NRI to individual.
Normally documents required by fund house for change of status it may vary
1. Request letter from NRI to individual
2. Change of Bank form ( With cancelled cheque of old and new bank )
3. Attach any valid identity proof
Thanks for sharing that Aditya
Dear BanyaFA and Ashal
Thanks a lot for ur advise…
BanyanFA I m returning from United Arab Emirates (U.A.E) ,Dubai
what advise would u give for a person returning from Dubai…
Regards
Samad
Dear Banyansa Thanks very much for ur meticulous reply..
Any other advise or tips…
Regrds
Samad
Samad
I would need further details of which country are your returning from. You need to be very careful of your tax status in your respective country !
Regards
BanyanFA
Dear Samad, please read my reply in addition to what dear BanyanFA has already discussed. Instead of contacting each of your AMC for updation of RI status, contact the registrar of your respective MFs CMAS or Karvy as the case may be & all of your folios with that registrar ‘ll be updated for RI status. this ‘ll save both, Time & Energy.
Thanks
Ashal
Hi Ashal,
Just a query as I am not aware of it. My understanding is that even if you approach Karvy / CAMS, the number of forms which would need to be filled shall be exactly the same. Yes, I agree the headache to visit each AMC would be reduced, but the form filling exercise may be the same.
Regards
BanyanFA
Dear BanyanFA, I’m also not sure but after the recent guidelines for consolidated account statement, it may be possible to update the RI status in one shot at the office of registrar. Even if it’s multiple forms for each of AMC, this is worth of money.
Thanks
Ashal
Samad,
I specialise in NRI matters and have done this for a few clients. The steps to follow are :
1. Go to the bank first and get your NRO account changed from NRO to resident account status.
2. Take a confirmation letter from bank mentioning that your bank status has now changed from NRO to Resident account
3. Take a copy of that letter to each of the Mutual Fund house who would then convert each of your folio from Non Resident to Resident status.
4. Your SIPs hence remain unaffected.
If your bank account number gets changed (depends upon the respective bank’s policies), then you would have to do the following :
1. Take a confirmation letter from bank stating that your bank status as NRO has been changed to Resident. Your new account number is xxxx
2. Visit your MF office and for each SIP, submit a Stop form for your SIP.
3. Submit a copy of bank confirmation stating your new status (this would change your MF’s folio from Non Resident to Resident).
4. Submit a fresh SIP form with new bank details.
Please do not end up redeeming your mutual funds and then reinvesting them as residents. This would attract exit loads and capital gain taxation (both in India and your respective foreign country).
Regards
BanyanFA