Non-Resident Indians (NRIs) are permitted to invest in the Indian stock market through the Portfolio Investment Scheme (PIS), primarily operating in the secondary market.

To invest in the Indian stock market as an NRI, follow these steps:

• Open a bank account with an approved designated bank branch.
• Obtain approval from the designated bank for investment in the Indian Stock Market under the Portfolio Investment Scheme (PIS). Kotak Mahindra Bank is one of the designated branches for issuing RBI Approval, known as PIS.
• Open a Demat Account with a Depository Participant.
• Open a Trading account with a SEBI-registered broker to execute trades on your behalf on the Exchange.

Kotak Securities offers the convenience of accessing all these facilities under one roof, ensuring a seamless and integrated investment experience for its clients. Simply fill out the necessary details in the provided form to get started.

It's important for NRIs to be aware of specific trading restrictions and tax implications in the Indian stock market:

• Intraday Trading Restriction: NRIs are not allowed to engage in intraday trading. This means that Daily Square Off (closing open positions within the same trading day) is not permitted for NRI clients. All trades must be executed on a delivery basis.
• Mandatory Delivery Basis Trading: Clients can trade only on a delivery basis, meaning they must take delivery of the shares when buying and provide delivery when selling.
• Reporting Transactions: All contract notes for either buy or sell transactions must be reported to the Authorized Dealer (PIS Banker) within 24 hours of the transactions. This reporting is typically handled by the broker, such as Kotak Securities Ltd.
• Taxation on Sale Transactions: Every sale transaction will be credited to the client's bank account net of tax. This means that capital gains for each sale transaction will be calculated by a Chartered Accountant (CA). As per current laws:

For long-term capital gains, the tax rate is 10.30% on gains exceeding ₹1 lakh.

For short-term capital gains, the tax rate is 15.45%.

These rules and regulations ensure that NRI clients comply with Indian financial laws while participating in the stock market.

As an NRI (Non-Resident Indian), it's important to understand the investment limits in Indian companies under the Portfolio Investment Scheme (PIS):

1. Individual NRI Investment Ceiling: An NRI can invest up to a maximum of 5% of the aggregate paid-up capital of an Indian company. This includes both equity and preference capital or the aggregate paid-up value of each series of convertible debentures. The ceiling encompasses both repatriation and non-repatriation investments under the PIS.
2. Aggregate NRI Investment Ceiling: There's an overall cap of 10% on the paid-up equity share capital of the company or the paid-up value of each series of convertible debentures for all NRIs and Overseas Corporate Bodies (OCBs) collectively. However, this overall limit can be increased if the company passes a special resolution in its general body meeting.
3. Monitoring of Investment Limits: Individual NRI holdings are monitored by the respective designated bank branches. The Reserve Bank of India (RBI) monitors the aggregate NRI holdings.
4. Restriction Mechanism: When the aggregate NRI holding reaches or is close to the prescribed maximum ceiling, the RBI places the concerned stock under a Restrict List/Watch List. This list is updated and published by the RBI periodically.
5. Sector-Specific Ceilings and Restrictions: Different sectors have varying investment ceilings for NRIs. If the ceiling is breached, the RBI blocks the stock for NRI trading. These stocks are reopened for trading once the NRI holding percentage falls below the set limit.

NRIs must stay informed about these regulations and monitor their investments accordingly to ensure compliance with RBI guidelines.

The Reserve Bank of India (RBI) actively monitors the investment positions of NRIs (Non-Resident Indians) and FIIs (Foreign Institutional Investors) in listed Indian companies. This process is conducted in collaboration with designated banks and is reviewed daily to ensure compliance with regulatory limits. Here's how the monitoring and restriction process works:

1. Monitoring Investment Limits: The RBI keeps track of the total holdings of NRIs/FIIs in each listed Indian company. This is done through reports submitted by the designated banks.
2. Approaching Sectoral Cap Notification: When the cumulative investment of NRIs/FIIs in a particular company is about to reach the sectoral cap (usually 2 percent below the limit), the RBI issues a caution list notification. This is communicated to all the designated branches of designated banks. The notification indicates that any further purchase of shares in that specific company will require prior approval from the RBI.
3. Reaching the Investment Ceiling: If the investment by NRIs/FIIs reaches the overall ceiling, sectoral cap, or the statutory limit set for the company, the RBI will place that company in the Ban List.
4. Implications of the Ban List: Once a company is included in the Ban List, NRIs are prohibited from purchasing shares of that company under the Portfolio Investment Scheme.
5. Access to Information: The RBI maintains and regularly updates the list of companies that are on the caution and ban lists. This information is crucial for NRIs and FIIs to make informed investment decisions and is available on the RBI’s website at http://www.rbi.org.in/scripts/BS_FiiUSer.aspx.

NRIs and FIIs should regularly check these lists to ensure their investments comply with the current RBI guidelines and avoid any inadvertent breaches of the investment limits.

Say for example, If an Non-Resident Indian (NRI) exceeds the permissible limit for purchasing shares of SBI (State Bank of India), any such additional purchase would be considered invalid. In such cases, the NRI would be required to dispose of the excess shares immediately. It's important to note that any resulting financial loss would be borne solely by the NRI.

Yes, NRI can trade in ETFs.

For Equity ETFs the tax rates applicable same as Equities, and "gold-etf" type="page" href="/gold-etf" data-runtime-url="/gold-etf">GOLD ETFs.

Non-Resident Indians (NRIs) are generally permitted to participate in Initial Public Offerings (IPOs), subject to the guidelines outlined in the offer documents of each IPO. These documents provide essential details regarding the eligibility criteria and procedures for NRIs interested in investing in the IPO.

An Initial Public Offering (IPO) occurs when an unlisted company introduces either new securities or offers its existing securities for sale, or both, to the public for the first time. This process facilitates the listing and subsequent trading of the issuer's securities on the Stock Exchanges.

The Initial Public Offerings (IPOs) of the following financial instruments are available at www.kotaksecurities.com:

• Equity shares
• Non-convertible debentures
• Bonds

Investors can explore these offerings and consider participating in them through the Kotak Securities platform.

Issues can be categorized based on their pricing methods into either Fixed Price Issues or Book Built Issues.

• Fixed Price Issue: This occurs when the issuer determines the issue price in advance and specifies it in the Offer Document. This predetermined price is what is known as a 'Fixed Price Issue.'
• Book Built Issue: In contrast, a 'Book Built Issue' refers to a process where the issue price is not predetermined but rather determined based on the demand received from prospective investors at various price levels. This method allows the market demand to dictate the final price of the issue."

These definitions help investors understand the different approaches companies might take when issuing new securities.

The price band in an Initial Public Offering (IPO) is a range within which investors are allowed to place their bids. This band has a minimum (floor price) and a maximum (cap price), and the difference between these two extremes cannot exceed 20%. It's important to note that the price band is subject to revision. In the event of such a revision, the bidding period will be extended by an additional three days. However, even with this extension, the total bidding period is not allowed to surpass thirteen days."

This explanation provides potential investors with a clear understanding of the price band mechanism and its implications on the bidding process in IPOs.

A 'Bid-lot' represents a set number of shares that an investor must apply for in an Initial Public Offering (IPO). This number varies with each issue and is predetermined by the company. The minimum lot size, which is specified in the application form, dictates the smallest number of shares an investor can apply for. For instance, in the IPO of XYZ Co., the minimum bid lot is 10 shares, with bid-lot multiples of 10, and a price band of 100-120. This means a retail investor must apply for at least 10 shares. Any application for additional shares must be in multiples of 10, such as 20, 30, 40, and so on.

In a Book Built Issue, the final price of the offer is determined based on the demand received at various price levels. The Issuer Company, in consultation with the Book Running Lead Managers (BRLMs), analyzes this demand to decide on the final price. The price that is ultimately established through this process is referred to as the 'discovered price'

You have the flexibility to modify or revise the quantity or price in your bid for an online order, except during certain specific periods. Changes cannot be made once the order has been sent for processing, and modification, revision, or cancellation is not permitted after the cut-off time.

You have the option to cancel your bid for an online order at any time, provided it is done before the cut-off time designated for modifications, revisions, or cancellations.

A Syndicate Member or Broker is a recognized member of the Stock Exchange, to whom investors are required to submit their IPO bid or application forms. Upon receiving these bids, the Syndicate Member/Broker is responsible for uploading them onto the stock exchange's electronic book. It's important to note that only bids uploaded into this electronic book are considered for allotment.

Once the bid is uploaded, the Syndicate Member/Broker forwards the bid along with the payment (usually in the form of a cheque) to the designated bankers. In the case of online applications, the Syndicate Member/Broker generates an electronic application form. This form, accompanied by proof of payment for the bid amount, is then submitted to the registrar of the IPO.

After accepting and processing your IPO bid, the syndicate member will provide you with a counterfoil. This counterfoil, which is marked with the syndicate member's signature, date, and official stamp, serves as a confirmation. You should retain this document as it stands as sufficient proof that your bids have been acknowledged and accepted by the trading or syndicate member for uploading onto the exchange's terminal.

IInvestors are broadly classified into the following categories:

• Retail Individual Investor (RIIs): A retail individual investor is defined as an investor who applies or bids for securities for a value of up to Rs. 2,00,000.
• Non-Institutional Investors (NIIs): Non-Institutional Investors, including individuals and corporate entities, are investors who apply or bid for securities for a value exceeding Rs. 2,00,000.
• Qualified Institutional Buyers (QIBs): QIBs are institutional investors such as banks, financial institutions, mutual funds, insurance companies, etc., who are deemed to possess the expertise and financial capability to participate in large-scale investments in securities.

At www.kotaksecurities.com, only Retail IPO bids are accepted. According to SEBI (Securities and Exchange Board of India) regulations, any Non-retail bid must be submitted through the ASBA (Application Supported by Blocked Amount) mode. This procedure involves placing the bid with registered Self Certified Syndicate Banks (SCSBs), where the bid amount is blocked in the investor's bank account until the allotment is finalised.

If you have any queries regarding the IPO process, you can reach out to the compliance officer of the issuer or SEBI. Their contact details are usually provided on the cover page of the company's prospectus. Additionally, if you are a Kotak Securities customer, you can contact our customer service team at 30305757 or email us at service.securities@kotak.com for assistance with your IPO-related inquiries.

Under current regulations, newly issued shares must be listed on a stock exchange within 12 working days following the closure of the issue. Working backwards from this deadline, it implies that essential processes such as the allotment of shares, uploading these shares into investors' accounts, and the issuance of refunds, must all be completed within 10 working days from the issue's closing date.

According to current norms, newly issued shares must be listed on a stock exchange no later than the 12th working day following the closure of the issue. Consequently, working backward from this deadline, critical tasks such as the allotment of shares, uploading these shares into investors' accounts, and processing of refunds must all be completed within 10 working days from the date the issue closes.

You can begin trading your newly issued shares once they are officially listed on the stock exchange, or after confirming that the allotted shares have been credited to your NRI Demat Account. It's important to note that as per current regulations, you are not permitted to conduct any off-market transfers from your account until the shares are listed.

An IPO, or Initial Public Offering, is an offer for subscription made by a company whose shares are not yet listed on any stock exchange for trading. On the other hand, an FPO, or Follow-on Public Offering, is an offer made by a company that is already listed on a stock exchange to issue additional securities. For investors considering an investment in a listed company, they have the option to either buy shares directly from the market or subscribe to the new offer made by the company.

A retail investor has the flexibility to bid at any price within the specified price band during an IPO, or they can choose to bid at the 'cut-off price.' Opting for the cut-off price means that the investor agrees to pay the final price determined at the end of the book-building process, whatever it may be. When applying at the cut-off, investors must initially pay the amount based on the highest price in the price band. If the final discovered price is lower than this highest price, the excess amount paid is then refunded to the investor. It's important to note that the cut-off option is available exclusively to Retail Investors and to the Employees of the issuing company who are applying under the Employee Category.

The combination of the Depository Participant ID (DP-ID) and the Client ID serves as the definitive identification for an applicant in an IPO. The NRI Demat account number provided in the electronic bid file is critical, as it is used for both the crediting of allotted shares and the remittance of refunds. The Registrar, responsible for processing applications, relies solely on the bid file for validation. In the absence of alternate verification methods, entering an incorrect but valid Demat account number can lead to the misallocation of shares or erroneous refunds. Therefore, it is imperative to ensure that the Demat Account Number is accurately stated in the IPO application form.

According to SEBI (Securities and Exchange Board of India) guidelines, it is mandatory for all applicants to provide their Permanent Account Number (PAN) when applying for any public issue. Applications that either lack a PAN or include an invalid PAN are subject to rejection. Investors are advised to ensure that their Depository Participant (DP) account is updated with the correct PAN details. This step is crucial for the seamless processing of your application.

A Registrar to an Issue is an entity registered with SEBI (Securities and Exchange Board of India) and is qualified to manage IPO processes. The Registrar's primary responsibility is to electronically process all applications, ensuring that the allotment of shares is conducted by the rules set out in the prospectus. Post-IPO, the Registrar is tasked with updating the electronic credit of shares to successful applicants, overseeing the dispatch or electronic uploading of refunds, and addressing any investor-related queries. Typically, the Registrar's engagement with the company extends beyond the IPO, as they often continue to serve as the company's Registrar and Transfer Agent.

The Registrar's involvement in an IPO can be categorized into three distinct phases:

1. Pre-IPO Phase: During this initial stage, the Registrar undertakes all preparatory tasks necessary for the IPO. This includes providing instructions to escrow and ASBA bankers regarding the procedures to be followed and the strict timelines they must adhere to.
2. Post-IPO Closure but Pre-Listing Phase: In this critical phase, the Registrar receives the Final BID file from the stock exchanges and carries out a thorough validation. They coordinate with bankers to confirm the receipt of final collection certificates, account for any returned cheques, and note any withdrawals. The Registrar also identifies and addresses any technical defects. After considering all rejections, and withdrawals, and reconciling bank receipts with the Final Bid file, the Registrar, in collaboration with the Book Running Lead Managers (BRLMs) and the Issuer, prepares the basis of allotment. This basis of allotment is then submitted to the Stock Exchange for approval. Following approval, the Registrar executes the allotment of shares, ensures the accurate preparation of electronic files for the credit of shares and refunds, and oversees the timely completion of all processes, including the printing and dispatch of allotment advice and refunds.
3. Post-Allotment / Listing Phase: In the final phase, the Registrar focuses on addressing any investor complaints and works diligently towards their speedy resolution.

Throughout these phases, the Registrar plays a crucial role in ensuring that the IPO process is conducted efficiently, transparently, and in compliance with regulatory guidelines.

In a book-built issue, the status of bidding is readily accessible on the websites of BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). This information is presented on a consolidated basis and includes investor category-wise data. Once the bidding process concludes and the price is determined, a public advertisement is published. This advertisement, among other details, includes the final price and a table showing the number of securities and the corresponding amount payable by an investor, based on the determined price.

Contrastingly, in a fixed price issue, the availability of such information follows a different timeline. Details about the issue are not immediately available during the bidding process. Instead, they are disclosed through a public advertisement issued within 10 days after the dispatch of the allotment certificates and refund orders. This advertisement is released after the closure of the issue, providing investors with comprehensive details about the outcome.

To fund your Mutual Funds or IPO investments, transfer funds to your designated ledger account using the money transfer link available at www.kotaksecurities.com. The acceptable sources for fund transfers include:

Bank Account: You can directly transfer funds from your bank account to your Mutual Funds/IPO ledger account.

Equity Account: Additionally, NRI clients have the flexibility to transfer funds between their Saving Bank account and Mutual Funds ledger account, and vice versa.

This streamlined process ensures easy and efficient management of your investments in Mutual Funds and IPOs.

To engage in online trading as an NRI with Kotak Securities Ltd, you need to ensure the following:

• NRI Trading Account: You must have an active online NRI trading account with Kotak Securities Ltd.
• Linked Demat Account: Your NRI Demat account should be linked to your trading account at kotaksecurities.com. This linkage is crucial for seamless transaction processing.
• Sufficient Funds: Ensure that there are adequate funds in your Mutual Funds/IPO ledger account with www.kotaksecurities.com. Adequate funding is necessary to facilitate smooth transactions in your chosen investment avenues.

By meeting these requirements, you'll be set to efficiently manage and execute your trading activities with Kotak Securities

To verify the allotment of shares from an IPO, simply check your NRI Demat account that is linked to your Kotak Securities online NRI trading account. The allotment status will be updated on the date of the IPO order execution. This allows you to promptly view the details of any shares allocated to you through the IPO process.

In the event of a refund from an IPO, the process is straightforward if your bank account details are up-to-date. On the date of allotment, refunds are directly credited by the IPO registrar to the bank account linked to your NRI Demat account. This seamless process occurs only if the MICR number of your bank account is accurately updated in your Demat account. In cases where the MICR number is not updated or is incorrect, you will receive your refund through a physical warrant. This warrant is dispatched via post or courier by the IPO registrar.

A mutual fund is an investment vehicle designed to pool funds from multiple investors. These collective funds are then invested in a diverse range of securities, aligning with the objectives outlined in the mutual fund's offer document. When investors contribute to a mutual fund, they receive units that represent their share of holdings in the fund. These investors are commonly referred to as unit holders.

One of the key benefits of mutual funds is diversification. By spreading investments across various industries and sectors, mutual funds mitigate the risks associated with investing in individual securities. The profits or losses from these investments are proportionally distributed among the unit holders, based on the amount they have invested.

Mutual funds offer a variety of schemes, each with its unique investment objectives to cater to the differing needs and risk profiles of investors. These schemes are periodically launched, providing investors with a range of options to choose from.

It's important to note that a mutual fund in India must be registered with the Securities and Exchange Board of India (SEBI), the regulatory authority overseeing the securities market. This registration is crucial as it ensures the fund operates within the regulatory framework established to protect the interests of investors.

Asset Management Company (AMC) is a company that invests its clients' pooled fund into securities that matches its declared financial objectives. Asset management companies provide investors with more diversification and investing options than they would have by themselves.

The Net Asset Value is the cumulative market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending on the type of scheme."

Qualified and experienced professionals manage Mutual Funds. Generally, investors, by themselves, may have reasonable capability, but to assess a financial instrument, a professional analytical approach is required in addition to access to research and information, time and methodology to make sound investment decisions.

Since Mutual Funds make investments in a number of stocks, the resultant diversification reduces risk. They provide the small investors with an opportunity to invest in a larger basket of securities.

The investor is spared the time and effort of tracking investments, collecting income, etc. from various issuers, etc.

It is possible to invest in small amounts as and when the investor has surplus funds to invest.

Mutual Funds are well regulated & governed by SEBI (Mutual Funds) Regulations, 1996 thereby ensuring transparency of investments.

In case of open-ended funds, the investment is very liquid as it can be redeemed at any time with the fund, unlike direct investment in stocks/bonds.

Mutual Funds unlike fixed deposit, Bonds and other Government securities do not provide guarantee of returns. Their returns are directly related to the performance of the underlying asset in which they invest like shares, debentures etc which are known for the risk associated with them. The unit value may vary with the performance of the company, and companies may default in payment of interest/principal on their debentures/bonds/deposits. In addition to these, changes in macro level policies & regulations may also affect sectors in Indian economy thereby affecting mutual fund performance.

Schemes according to Maturity Period

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Interval Funds / Scheme

These funds combine the features of both open-ended and close-ended funds wherein the fund is close-ended for the first couple of years and open-ended thereafter. Some funds allow fresh subscriptions and redemption at fixed times every year (say every six months) in order to reduce the administrative aspects of daily entry or exit, yet providing reasonable liquidity

Schemes according to Investment Objective

Growth / Equity Funds

The aim of growth funds is to provide capital appreciation over medium to long- term periods. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

Income / Debt Funds

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Balanced Fund

The aim of balanced funds is to provide both growth and regular income. As such, schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less as compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Gilt Fund

These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as in the case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known in technical terms as a "tracking error". Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

Mutual funds cannot increase the load beyond the level mentioned in the offer document. Any change in the load will be applicable only to prospective investments and not to the original investments. In case of imposition of fresh loads or increase in existing loads, the mutual funds are required to amend their offer documents so that the new investors are aware of loads at the time of investments.

• Birla Sun life Mutual fund
• Deutsche Mutual fund
• DSP Blackrock Mutual fund
• Fidelity Mutual fund
• FORTIS Mutual fund
• Franklin Templeton Mutual fund
• HDFC Mutual fund
• HSBC Mutual fund
• ICICI Prudential Mutual fund
• IDBI Principle Mutual fund
• IDFC Mutual fund
• ING Vysya Mutual fund
• JM Mutual fund
• Kotak Mahindra Mutual fund
• L&T Mutual fund
• LIC Mutual fund
• Reliance Mutual fund
• Religare Mutual Fund
• SBI Mutual fund
• Sundaram BNP Paribas Mutual fund
• Tata Mutual fund

Mutual funds transaction types are bifurcated in two categories i.e. Commercial transaction and Non-commercial transactions.

Commercial transactions offered at kotaksecurities.com are following:

• Purchase / Additional Purchase
• Redemption
• Switch
• Systematic Investment Plan
• Systematic Transfer Plan

Non-Commercial transactions offered at kotaksecurities.com are following: Such transactions comprises of the requests for change in client's profile in AMC records for instance:

• Offline to Online portfolio conversion
• Nomination Request
• Bank updation

Some schemes like ETFs are compulsorily allotted in demat mode. Hence to transact in such a scheme you need to have a NRI Demat account linked to your NRI trading account.

For allotment in online mode there is no need for a Demat account.

As per recent developments in the industry, units of all mutual funds schemes can be allotted in both the modes i.e. Physical as well as in Demat. Also, the depositories have allowed the DPs to facilitate holding of mutual funds in NRI demat account. Currently kotaksecurities.com facilitates the transaction of online mode of allotment only.

• Ease of tracking status & periodical variations in mutual funds
• Efficient & Speedy
• Avoid issuing of cheques & paper work every time you invest
• Ensures privacy of your investments Invest at your convenience through call & trade.

Buy- Choose from over 3000 schemes representing more than 21 AMCs for the purchase of mutual funds units. Track- You can view your transaction status in addition to portfolio monitoring & monthly MIS on your mutual funds portfolio.

Redeem- You can redeem your mutual fund units anytime & exit/reinvest as the case may be.

Transfer- www.kotaksecurities.com enables you to transfer the funds directly from your bank account to MF ledger & also receive mutual funds proceeds directly into your bank account.

SIP- Enjoy the benefit of investing in SIPs by receiving regular updates on your SIP installments, due dates & value-added features every now & then.

Kotak Securities as a distributor does not levy any charges or fees for the investments in any mutual funds schemes online.

Yes, non-resident Indians can also invest in mutual funds. Necessary details in this respect are given in the offer documents of the schemes.

NRIs can invest in Mutual funds through both NRE and NRO route. Funds invested through NRE are easily repatriable.

An abridged offer document, which contains very useful information, is required to be given to the prospective investor by the mutual fund. The application form for subscription to a scheme is an integral part of the offer document. SEBI has prescribed minimum disclosures in the offer document. An investor, before investing in a scheme, should carefully read the offer document. Due care must be given to portions relating to main features of the scheme, risk factors, initial issue expenses and recurring expenses to be charged to the scheme, entry or exit loads, sponsor's track record, educational qualification and work experience of key personnel including fund managers, performance of other schemes launched by the mutual fund in the past, pending litigations and penalties imposed, etc.

Mutual funds are required to dispatch certificates or statements of accounts within six weeks from the date of closure of the initial subscription of the scheme. In case of close-ended schemes, the investors would get either a demat account statement or unit certificates as these are traded in the stock exchanges. In case of open-ended schemes, a statement of account is issued by the mutual fund within 30 days from the date of closure of initial public offer of the scheme. The procedure of repurchase is mentioned in the offer document.

A mutual fund is required to dispatch to the unit holders the dividend warrants within 30 days of the declaration of the dividend and the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase request made by the unit holder.

You can view mutual funds portfolio tracker available in the mutual funds section of www.kotaksecurities.com. It displays cost of your holding, the current value of holding, realised gain/loss, unrealised gain/loss, IRR (Internal rate of returns), etc.

In case of winding up of a scheme, the mutual funds pay a sum based on prevailing NAV after adjustment of expenses. Unit holders are entitled to receive a report on winding up from the mutual funds which gives all the necessary details.

Being an NRI, mutual fund units can only be bought in NON-PINS account.

Yes. The tax applicable is called as STT i.e. Security transaction tax which is 0.25%. STT is applicable only in case of redemption of equity linked schemes. Normal tax rates apply in case of Debt Mutual funds. In case of NRI's Tax is deducted at source by the AMC.

Switch means an option to the customer to switch all or part of their investments in a scheme/plan/option of the fund to another scheme/plan/option of the same fund which is available for investment at that time, subject to the terms and conditions of the offer document of the respective schemes. The switch will be made by redeeming existing units and re investing the redemption proceeds in another scheme/plan/option at the applicable redemption price and purchase price respectively for the scheme(s)/, plan(s)/, option(s).

Systematic Investment Plan (SIP) means an option available with the Customer for investing, at a specified frequency, in a specified Scheme of the Fund, a fixed amount of Rupees for purchasing additional units at the applicable NAV on a specified date, assuming that the provisions of the Offer document of the respective scheme shall always be applicable for SIP transactions.

Systematic Transfer Plan (STP) means an option available with the customer who holds Units to transfer a pre determined amount or a variable amount subject to deduction of tax, if any, at a specified frequency, from a specified Scheme of the fund to another specific scheme of the fund at a specified period at a specified frequency at the applicable NAV on a specified date, assuming that the provisions of the offer document of the respective Schemes shall always be applicable for STP transactions.

Auto-Debit feature enables automatic transfer of funds from your Kotak Mahindra Bank Account to MF Ledger before the due date of SIP & ensures timely investment in mutual fund SIPs with no defaults.

No. Prior to the implementation of the SEBI guideline, an entry load was charged on all Mutual fund purchases. As per the new guidelines issued by SEBI, with effect from August 1, 2009, entry load will not be charged on purchases in existing mutual fund schemes or on schemes launched thereafter. However, any investment made by you in an NFO which was launched prior to August 1, 2009 will continue to attract entry load and other charges as specified in the offer document.

Exit load is not a standard charge; it varies from scheme to scheme depending upon the type & objective of the scheme. Exit load is calculated as a percentage of NAV & normally varies between 0.25% to 2% of the redemption value. The funds which do not charge exit loads are known as 'No Load Funds' .

Redemption price is the price received on selling units of open-ended scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV. The redemption price will be lower than the NAV in case the fund levies an exit load.

Repurchase price is the price at which a close-ended scheme repurchases its units. If the fund does not levy an exit load, the repurchase price will be same as the NAV. The repurchase price will be lower than the NAV in case the fund levies an exit load.

It can be done by placing an online request through www.kotaksecurities.com > Mutual Funds > Offline to Online.

Yes

Yes. There is an online facility to place nomination request.