Federal Bank launches portfolio investment scheme for NRIs

Kerala-based Federal Bank today launched its Portfolio Investment (PIS) Scheme for NRIs in tie up with Geojit BNP Paribas Financial Services Ltd, offering "hassle free" facilities for investments in stock market.

The bank, which has been authorised by RBI to administer the scheme, was the first among the traditional private sector banks to offer the facility, its Managing Director and CEO M Venugopalan said.

As per RBI rules, investments by NRIs in Indian share market were permitted under PIS of a bank only, he said.

Under the scheme, NRIs could investment in shares with or without repatriation benefits, he said, adding they need to open separate PIS accounts with the bank for repatriation and non-repatriation benefits.

The trading account would be opened with Geojit BNP Paribas Financial Services Limited. DP account may be opened with Federal bank/Geojit BNP Paribas Financial Services Limited. NRIs need to only issue orders for purchase/sale of shares and the remaining procedures will be handled by the bank and Geojit, he said.

Federal Bank has over six lakh NRI clients and has a representative office in Abu Dhabi and Relationship Managers in other Gulf countries.

Geojit BNP Paribas Financial Services Managing Director and CEO C J George said with the two organisations operating together, NRIs could execute transactions in the stock market with maximum convenience.

Geojit BNP Paribas Financial Services has offices in UAE, Bahrain and Saudi Arabia.