YES, under the Liberalized Remittance Scheme (LRS), the Reserve Bank of India (RBI) allows an Indian resident to invest up to USD $250,000 per year in overseas markets. The LRS has made it easier for Indian residents to study abroad, travel, and make investments in other countries.
For the most up to date regulations regarding the LRS please visit https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10192&Mode=0 (Reserve Bank of India - Notifications (rbi.org.in) . Please see article 6(iii) for specific LRS regulations regarding investments in equity
PAN card, an image of your PAN card, and
Proof of address (You can use Aadhar card, your utility bill, mobile phone bill, bank, or credit card statement. Note: All bills and statements must be within the last 3 months and must have your name on it).
The whole process is paperless and can be completed in minutes.
Instituted by the RBI, the LRS is a set of policies that governs the maximum amount and purposes of remittance. Under the LRS, an individual can annually send up to USD $250,000 abroad without seeking approval from the RBI. The LRS has made it easier for Indian residents to study abroad, travel, and make investments in other countries.
For the most up to date regulations regarding the LRS please visit here (Reserve Bank of India - Notifications (rbi.org.in)). Please see article 6(iii) for specific LRS regulations regarding investments in equity
Our brokerage partner, DriveWealth, is a member of the Securities Investor Protection Corporation ("SIPC") which currently protects the securities in your account up to $500,000 Minimum Investment Requirement.
On the Stockal platform you can invest in either full or fractional shares. When your investment is in full shares, our broker partner (DriveWealth) will route the orders to market centers on an Agency basis. When the investment is fractional shares, our broker partner will satisfy the order from its own account, on a Principal basis, at the National Best Bid or Offer (NBBO).
NBBO means that DriveWealth cannot add margin to the price. So, if the market price of 1 share of Amazon is $1000, and you purchase 0.1 share of Amazon, you will pay $100 for the 0.1 share. Any orders for both full or fractional shares will be executed via both methods, part as Agent and part as Principal.
There is NO MINIMUM Investment at Stockal.
For our users there are two types of taxation events:
Taxes on investment gains: You will be taxed in India for this gain. You will not be taxed in the US. The amount of taxes you have to pay in India depends on how long you hold the investment.
24 months is the long-term capital gain threshold and the tax rate is 20% with indexation benefit. Below 24 months is short-term capital gain and is taxed according to your income tax slab
Taxes on dividends: Unlike investment gain, dividends will be taxed in the US at a flat rate of 25%. Fortunately, the US and India have a Double Taxation Avoidance Agreement (DTAA), which allows taxpayers to offset income tax already paid in the US. The 25% tax you already paid in the US is made available as Foreign Tax Credit and can be used to offset your income tax payable in India.