Best returns for NRI investors in 2007

In 2007, where can NRIs get the best returns for their investments in stocks? The quick answer is, in the BRIC (Brazil, Russia, India and China) countries - away from the traditional markets of the US, Britain, Japan and Europe that offer more security but lower returns.

Since money flows instantly to obtain the best returns, the entire telecom-linked globe is one investment market today. So bankers and financial advisors keep tracking every economy for best investment returns. Some developing economies such as Hong Kong, Singapore and Mexico also offer healthy returns. In this scenario, 25 million NRIs living in over 110 countries have to be alert where their funds can get the top returns.

"Another major factor for NRIs is the exchange rate," said Sanjay Durgan, a certified financial planner and CEO of AbunDanze. "NRIs have to take (note of) the exchange rates of the country from where they are investing and the country in which they are investing. The gains from the stocks can be increased or wiped out by currency movements.

"Finally, does the NRI investor have the time to research the markets and the stocks he should be investing in?" asks Durgan, who specialises in mutual fund investments for NRIs. "It takes training, time and patience to research the market and NRIs are very busy people and cannot devote this much time daily. So a practical solution is not to take 'the direct route' by investing in stocks but 'the indirect route' and go for mutual funds where professionals manage your investment."

Then the million-dollar question: where to invest? Why not the other BRIC countries?
"Of course yes, if there is a fund giving access to these markets. The Indian story is a familiar story, something the NRIs can relate to. Today, NRIs are proud of India and want to be a part of this success story."And NRIs want to invest in this growth and cannot be left out of this exciting action and also reap good returns in 2007.

Source: hindustantimes.com/

Investments by Non-residents in General Purchase of Shares and Securities by Non-residents

Introduction

10.1 (i) Foreign investment in India is subject to policy guidelines framed by the Government of India from time to time in accordance with its Industrial Policy. In terms of the Industrial Policy announced by the Government of India on 24th July 1991 followed by subsequent guidelines issued by them, foreign equity up to 50%/51%/74%, as the case may be, is permitted by Reserve Bank under the Automatic Route in specified industries/services sector.

Applications, which do not conform to the parameters of the Automatic Route, are required to be made to the Secretariat for Industrial Assistance (SIA), Ministry of Industry, Government of India, and New Delhi.

Foreign Institutional Investors are permitted to invest in all securities in primary and secondary markets in India as per guidelines issued by Ministry of Finance, Government of India, New Delhi.

(ii) A wide range of facilities for making investments in India in shares and securities,
Bank deposits, company deposits, etc. is available to individuals of Indian nationality or origin resident outside India (NRIs) and overseas corporate bodies predominantly owned by such persons (OCBs). They are subject to different rules and investments both with repatriation and non-repatriation benefits are permitted under various schemes.

(iii) Foreign investment in India is also subject to regulation through the various provisions of FERA 1973. However, Government under approves once foreign investment its foreign investment and industrial policy, requisite approvals under FERA 1973 are granted by Reserve Bank in pursuance of the Government approval/guidelines.

While the relative provisions of FERA 1973 have been explained in Part 'A', detailed regulations governing investments and certain ancillary matters such as remittance of dividend, royalty and technical know-how fee, sale/transfer of shares, repatriation of capital, etc. are given in Part 'B'.

The various schemes for investment by NRIs/OCBs and other matters relating to loans, overdrafts and guarantees to non-residents have been explained in Parts 'C' and 'D' respectively.

Source:http://www.hindustantimes.com/

Party is over, NRIs flying back

"The 'winter homes' for NRIs have been an important factor in driving up the real estate prices, since real estate developers create luxury condominiums and villas with all 'foreign' facilities and style and then sell them at premium prices. Even the locals who can afford it want to upgrade their lifestyles and pay the steep prices. New housing estates have American names like Vermont, Palm Springs, Santa Monica, Key West and Norwood, among others. They come with lush green landscape, health club, clubhouse, nursery, shopping arcade, temple and round-the-clock water, power and security. One developer has gone so far as to announce a new project near Mumbai called - what else? - New York City! "

It's time to head back home for NRIs who came to India to enjoy the festive season. Now that Pongal, Uttarayan -, Lohri and Makar Sankranti are all over, NRIs are reconfirming their seats to get back. With Navratri in mid-October, NRIs start planning their India trips for Diwali and the New Year and return at the latest by mid- or end-January.

For those living in Canada, eastern and central US, Britain and Europe, this is the time of freezing winter while India has sunny weather - warm in southern India, cool in central India and cold in northern India. But even the chilly north has eight hours of sunshine almost every day while in Britain and Europe one may not see the sun for weeks during this period.

"So Punjabi NRIs prefer to spend their winters in India, sunning it out and enjoying the good life."

Source: rxpgnews.com/

NRIs dont need Bank Loans for Ventures

Loans is a word that does not exist in the dictionary of many businessmen in four districts of the states, which are flush with NRI remittances.

When a majority of businessmen in Kutch, Anand, Kheda and Navsari need money for a venture, they do not head for banks looking for loans. Rather, they dig their own pockets. And no amount of promotional activities by banks which have to ensure that atleast 60 percent of their deposits are dispersed as loans, has helped to improve the dismal credit deposit (CD) ratio of below 30 percent in these districts. Otherwise the CD ratio of the commercial banks in the state hovers around 65 percent.

Gujarat has more than 8 lakh NRI accounts with total NRI deposits for Rs 17,486 crore. NRI deposit worth Rs 8,390.15 crore is distributed by these for districts.

While these districts have the maximum number of NRGs, two Dangs and Porbander, have a low CD ratio of 25 percent, due to poor business activity.

According to the latest review report of the State Level Bankers' Committee, CD ratio ratio of commercial banks in Kutch, Anand, Kheda and Navsari is 22.78 percent, 24.85 percent, 27.30 percent and 17.92 percent respectively, says Dena Bank GM, Purshotam Kumar.

ICICI Bank's senior general manager; international retail product group, Anup Bagchi says remittances from NRIs make a higher contribution to the country's forex reserve of $160 billion than FII and FDI. And, Gujarat receives one of the highest remittances. However, RBI has asked all banks to set up their credit activities in these districts in order to improve the CD ratio.


//Source: indiapost.com/

To Protect Gulf NRI Workers...

A new push is under way to protect the interests of Indian workers in the Gulf, it was declared yesterday.

Concrete steps will follow the global conference of overseas
Indians, held in New Delhi earlier this month, said Indian Ambassador
Balkrishna Shetty.

"It was a great experience to attend the three-day event, especially the session on the Gulf on the first day," he said.

Overseas Indian Affairs Minister Vayalar Ravi and Minister of State
for External Affairs E Ahmed spoke at the session, which was attended
by Indian community and business leaders in the Gulf.

Mr Shetty, who also spoke at the session, pointed out the efforts
made by the Indian Embassy in attending to the problems of expatriate
Indian workers.

"All the leaders have a clear understanding of the specific nature
of the problems faced by Indians in the Gulf, including the acute staff
shortage at Indian missions here," he noted.

"We were happy to learn that the government is taking serious steps to address the problems."

Mr Ravi talked about the proposed amendments to the Indian
Emigration Act, which will go a long way in making recruitment of
Indian workers in the Gulf more smooth, orderly and humane, said Mr
Shetty.

"Unlike previous years, the Indian government attached special
significance to this session, as it deals with issues concerning the
4.5 million strong expatriate Indians living in the Gulf," he noted.

Indians living around the world showed keen interest in taking part in their country's development process, said Mr Shetty.

"They also welcomed a declaration from Prime Minister Dr Manmohan
Singh on the establishment of a University for Persons of Indian
Origin," he added.

The three-day event was organised by the Ministry of Overseas Indian
Affairs in partnership with the Confederation of Indian Industry. This
year's theme was Rooting for the Roots: Meeting India's Development
Challenges.

The forum is the annual flagship event of the ministry and it aims
to connect more than 25m overseas Indians and bring the expertise and
knowledge of Indian community abroad to India .

Dr Singh opened the conference and President Dr A P J Abdul Kalam addressed the closing session.

SOURCE-www.gulf-daily-news.com

PNB hikes interest on fixed deposits

The Punjab National Bank (PNB) has hiked interest rates on fixed deposits under different maturity periods with effect from December 26, 2006, PNB zonal manager S P Singh said.

The interest rates are as follows: Eight percent for five years and above; 7.50 percent for one year to less than three years; Seven percent for 180 days to less than one year.

For bulk deposits, PNB offers eight percent interest for deposits of Rs 15 lakh to Rs 5 crore for periods of one year to less than two years. For deposits over Rs 5 crore, the bank offers higher rates of interest depending on the size and period of deposits.

For NRI deposits, the PNB is offering 6.33 percent for NRE deposits for one year. FCNR deposits in US dollars gets 5.33 percent, in GBP - 5.58 percent, Euro - 4.02 percent, CAD - 4.24 percent and AUD - 6.62 percent for a year. PNB offers housing loans at 9 percent for five years repayment, 9.25 percent for 10 years and 9.50 percent for 20 years.

//Source: newindpress.com

National Bank of Dubai teams up with India's HDFC Bank to offer non-resident Indian (NRI) services

National Bank of Dubai today announced its partnership with HDFC Bank, one of India's premier banks to help conduct their banking transactions in UAE and in India, in a seamless and cost-efficient manner.

Under the umbrella brand of NBD-HDFC Bank NRI Services, the partnership will offer a series of banking products and services such as joint account facilities, remittances, wealth management solutions, preferential pricing on home loans in India and others.

As part of the joint proposition, NRI customers will be able to sign up for the NBD-HDFC Bank NRI Value Account, featuring an NBD Value Account in the UAE and an HDFC Bank NRE / NRO Account in India.

The accounts will offer a host of benefits and features in the UAE such as interest, insurance, a free credit card, roadside assistance, medical access and value offers. Additionally, customers will get international gold debit cards at a preferential fee, payable at par chequing, investment advisory services, online mutual funds purchase and discounted safe deposit lockers, in India. Customers would be able to apply for opening both accounts at the same time by either visiting specified NBD branches or requesting a bank staff to visit them at home or office when convenient

Additionally, customers will be entitled to carry out cash withdrawals and enquiries on ATMs of NBD and HDFC Bank free of charge on accounts held in UAE and India. This will be a key benefit to NRI equity funds held in any account, whether in the UAE or in India, will be freely accessible at no extra cost to the customers. HDFC Bank has 1323 ATMs in 228 cities in India while NBD has over 150 ATMs in the UAE.

The arrangement will also offer customers the convenience of free telex transfers for remitting funds, from the customer's NBD Value account held with NBD to his or her account with HDFC Bank in India. Customers will be able to log on to NBD Online or walk into any NBD branch to request for a telex transfer.

In addition to the above, NRI customers will also be able to avail comprehensive wealth management solutions including investment products and insurance, with advisory services to help them choose the right NRI investment strategy to suit their personal financial profiles and needs. They will also be able to avail preferential pricing and home loan services for purchase of a dream house back home in India, apart from a variety of other banking products such as credit cards, personal loans, and auto loans, both in the UAE and India.

'An integral part of NBD's strategy is to provide value added products, seamless convenience and superior service to our customers,' stated Douglas Dowie, CEO, National Bank of Dubai. 'Our partnership with a leading institution like HDFC Bank will enable us to offer Indians in the UAE, one bank for both their worlds.' 'Through this alliance with NBD, we are looking to jointly provide Indian customers in the UAE the convenience of one - stop financial services,' said Aditya Puri, Managing Director, HDFC Bank. 'With growing interest in investment opportunities in India, we believe NRIs in the UAE will benefit from the hassle-free and cost effective platform that this partnership provides.'

//Source:http://www.ameinfo.com/