A road map for investment in indian capital market through portfolio management service

Reserve Bank of India (RBI) permits an NRI to invest in Indian capital market.

A permission is to be obtained from the RBI before investing. This permission is obtained through a designated bank where the NRI investor has the NRE/NRO ? PIS account. Investments can be done either on repatriate basis or on non-repatriate basis or both.

A NRI can invest in Portfolio Management Service (PMS) of AMJ Stocks under Portfolio Investment Scheme (PIS) of Axis bank Ltd.

Agreement with AMJ Stocks

The investor has to sign an agreement with AMJ Stocks to open a Portfolio Management Service with them. AMJ Stocks wil manage the investors fund as per the agreed scheme and al the reports regarding the investments are made available by AMJ Stocks through their web site. The clients are given login ID and password to access the web site.

Over and above the agreement with AMJ Stocks the folowing accounts are to be opened by the investor.

  1. An NRE/NRO bank account with any branch of Axis Bank Ltd.
  2. A PIS account with Axis Bank branch at Rajaji Road,Kochi.
  3. (This wil be done by Axis Bank free of cost for any NRE /NRO account holder)
  4. A Depository account with JRG Securities Ltd
  5. A Trading account with JRG Securities Ltd

1. An NRE/NRO bank account with Axis Bank Ltd.

The investor has to open a NRE account if he requires his investments to be repatriated and an NRO account if he does not want the repatriation facility. AMJ STOCKS can assist in opening these accounts with Axis bank Ltd.

2. PIS Account

The NRE Bank Account with RBI permission is caled PIS Account. Axis Bank wil provide this facility at free of cost to any NRE/NRO account holder on request.

3. A Depository account with JRG Securities Ltd

The investor has to open a demat account with JRG Securities Ltd in NRE status. The shares purchased wil be kept in this demat account in the name of the investor.

4. A Trading account with JRG Securities Ltd

This account is to be opened with JRG Securities Ltd and a Unique Identification Number (UIN) is generated in the name of the investor. Al market transactions are done through this UIN.This account is linked with the demat account of the investor. Contract notes for al transactions done under this account are delivered to PIS account in Axis Bank with 24 hours of transaction.

Buying of Share

AMJ Stocks wil place the buy order with JRG Securities Ltd after confirming the balance in the PIS account with Axis Bank Ltd. Payment for the shares bought wil be made by the bank directly to JRG on presentation of the contract note. The shares bought wil be credited into the DP account of the investor with on the fourth working day after the trade.

Selling of Shares

AMJ Stocks electronicaly places the sel order to JRG Securities and the contact note is delivered to the PIS account with Axis bank. The net sales value wil be credited to the PIS account on the fourth working day after the sales transaction.

PAN Number

PAN Stands for Permanent Account Number issued by Income Tax Department. PAN Card is essential for share market operations and al other financial transactions even if the investor has no tax payment liability in India. If the investor does not have a PAN, AMJ Stocks can assist you to procure the same.

Tax Aspects

All profits made from secondary market trades come under the purview of the Prevailing Income tax laws under two categories.

Long Term Capital Gains

Profits realized from shares that are held for more than one year are long term capital gains and are tax free.

Short Term Capital Gains

Profits realized within a period of less than one year wil attract short term capital gains tax @ 15% (Plus Surcharge) which wil be deducted at source by Axis Bank. Tax is calculated and deducted for each transaction. In other words, the profits made in one transaction cannot be set off against the loss made in another. You can, however, file your tax returns at the end of the year and claim refunds if any.


Currently, all dividends are tax-free in the hands of the investor.

Documents Required

The following agreement and applications duly filled in and signed to be handed over to AMJ Stocks

  1. PMS Agreement with AMJ Stocks
  2. Trading Account application
  3. Depository Account opening form
  4. PAN Application (if not already held by the investor)

The following documents are to be handed over along with the above applications.

  1. Six passport size colour photograph of the investor
  2. Copy of PAN card
  3. Copy of passport with Visa page
  4. Overseas Address proof
  5. Indian Address proof
  6. Bank Statement
  7. One Canceled Cheque Leaf


Core management team with more than 3 decades of experience
Owns a strong Research & Analysis wing
Fully online integrated processes and reporting
Multiple Investment Schemes

need guidance
on stock
market ?

Please give your email address and phone number, and we will get back to you within 24 hours.