Category: FAQ

Frequently Asked Questions

Why do NRIs/FPIs pay more?

Regulatory gotchas

The Reserve Bank of India (RBI) publishes a list of securities that are off-limits for NRIs and FPIs. This list can be found here.

As you can tell, the process is very unstructured and adhoc. The execution risk (the risk of buying a security that is off-limits) rests on the broker (StockViz). We have attempted to quantify that risk in terms of higher fees.

Operational friction

Typically, there are 3 parties to a transaction: the client, StockViz and Composite Investments. Composite provides margin, client executes trades through StockViz and the pay-in goes directly to Composite.

However, with NRIs, there is an additional party: the bank that manages the NRI’s PIS account. Here, Composite has to present the contract note to the bank, who will then transfer money from the client’s account to Composite. If there were any transactions that were deemed “off-limits” by the RBI, StockViz will only get to know about it at this stage. Also, with the additional cog in the wheel, there is an element of payment risk that we have attempted to quantify in terms of higher fees.

Account opening charges

All documents provided by the NRI/FPI needs to be notarized in India. These docs typically run into 20-30 pages. Plus, the account opening docs need to be couriered to the prospective client. We have quantified these charges in our upfront account opening fee of Rs. 5000/-


Transferring Your Holdings to Your New Account

To bring your existing holdings over to your new account, you will need to execute what is called an “Off Market Transfer.” This will be initiated by you, with your old broker.

  1. Obtain a copy of your Client Master Record (CMR) from Composite Investments (signed and sealed.)
  2. Attach the CMR to the demat account “close and transfer” form of your old broker.
  3. Submit these to your old broker along with your self-attested PAN card.

Once you submit the request for transfer to your old broker, it typically takes about two weeks before your positions are reflected in your new account.

How Do I Transfer Money To My Trading Account?

Composite Investments Account

Funds have to be transferred from the same account on which the account opening cheque was drawn.

For online transfer to Composite Investments:

Name of the Bank: HDFC BANK LIMITED
Account Name: Composite Investments Private Limited
Account Number : 00090340000207
IFSC Code : HDFC0000009
Account Type : Current Account
Name of the Branch : Kasturba Road, Bangalore