Yep. Check this.
Who is an NRI?
A Non Resident Indian (NRI) as per India’s Foreign Exchange Management Act 1999
(FEMA), is an Indian citizen or Foreign National of Indian Origin resident outside
India for purposes of employment, carrying on business or vocation in circumstances
as would indicate an intention to stay outside India for an indefinite period.An
individual will also be considered NRI if his stay in India is less than 182 days during
the preceding financial year.
But then that is the first time you become an NRI, after becoming one, is that a pre-requisite for every year or else it might be revoked ?
@nithin Yep, I know…Still it’s atleast not totally impossible…there doesn’t seem to be any other option at all
My plan is to make enough money (min 20 cr) to be able to start an category 3 Alternative investment fund(hedge fund), thereafter I can legally trade foreign leveraged trading from within India
Yep the criteria applies every year…while it may not be automatically revoked, the onus is still on you to be honest while reporting such things to your tax accountant
I think we can only open an account with SEBI regulated broker…is webull a member of sebi?
So how you are able to swing trade…are you able to short stocks?
Do you have a cash account or margin account on webull?
I am finding a way to trade us stocks on margin from very long time…
I talked to a stock CFD broker named F1 trade (suretrader rebranded) they are located in st. Vincent and greenlined…they accept cryptocurrency deposits…but withdrawals are only through wire transferrs…i also talked to some offshore formation agents for this purpose…
Still people don’t get it?
PDT only applies to margin account not cash account,
You can do as many trades as possible with cash account considering the fact that your cash is settled
SEBI regulated you say lol, lots of investors use TD ameritrade and other big US brokers for investment, so I think there is nothing wrong is choosing one without SEBI.
I don’t short even though I can because that requires margin account and my account is cash account, I just want to go all legal and don’t wanna mess with RBI.
So even if I withdraw I’ll pay taxes as short term investments.
Thats true…never mess with rules…
It seems offshore setup is the only possible way…
If anyone have tried this route…please guide me…
@nithin sir we have a family business in bangkok, thailand, so i was planning to shift to bangkok
So if i get the business visa i can stay there for one year without any problem,
Will i able to trade in US derivatives ? From bangkok, thailand , and what rules should i follow for trading in india?
Yeah I guess it should be okay.
If you say had $10k worth of stocks and you sold it on a monday and used the sale proceeds to buy more stock before the settlement of funds which takes 2 days (so either on Monday or Tuesday(BTST)), it is a margin trade and not a cash trade. The broker is funding the money to buy as what you have sold the money is yet to hit your account. And do more of that and it qualifies you as a pattern day trader. The question asked was around BTST trades.
PDT does not apply to cash account even if you buy stocks with unsettled cash, so buying something with unsettled cash (using cash account) does not violate anything making sure you’ve enough unsettled cash to buy a certain stock (i.e you’re paying with your own account balance although it didn’t hit your account yet because it’s unsettled)…here’s the thing that applies to a cash account which is called GFV which I guess you know already. if you sell the stock you bought with unsettled cash before it is settled that triggers GFV which may restrict your account for 90 days or so just like PDT or it’ll lock the amount you sold for some days(this happened to me once with webull).
Conclusion:
PDT applies to margin account(only margin account requires $25k min if they’re operating from USA):
PDT (if balance under $25K, does not apply for above $25k) can only daytrade thrice a week, doing more than that can restrict account temporarily.
GFV applies to a cash account when you sell a stock using unsettled cash.
**
If you buy something using unsettled cash that does not mean PDT has been applied to you because PDT only lets you trade thrice a week which is not true when it comes to a cash account.
**
If you need more clarification I would be happy to help, because I have been in the US market from Long time.
Cheers, will message here if required.
So daytrading can be done thrice a week with Webulls
Without any regulatory worries
Am i correct sirji
No daytrading is a grey area, ON the RBI LRS circular they mentioned nothing about daytrading other than investing, it’s like there are no rules for daytrading set by RBI, I’m staying away from it currently.
If nithin or his team gets approval for daytrading in the foreign market specifically for their new upcoming international platform, Then it’ll be legal to do daytrading.
Please read through one of my blog post that answers all the questions
Any account that executes four round-trip orders within five business days shows a pattern of day trading. A round trip occurs when you buy and sell (or sell short and buy to cover) the same stock or options position during the same trading day. If you have been flagged as a pattern day trader, you will need at least $25,000 in total account value at the start of the day or you will have to wait 90 days before you can day trade
TD Ameritrade & IB are the best brokers for Non Resident Aliens (non us citizens)
https://www.tdameritrade.com/why-td-ameritrade/contact-us/top-faqs.page
suppose you were NRI for just one year and have all your funds in foreign bank accounts ,
After you come back to india , I presume one can still use the same funds abroad for trading ( as there are no restrictions on the money earned aborad ) , and can repatriate the profits back to india as profits on investments abroad .
what to you say ?
Yeah. But you lose the NRI status if you are a resident for more than 180 days.
Hi @nithin,
Wanted to Ask you this question, From 2014 i am on Foreign based assignments, from Indian MNC Companies, such as KEC and L&T and also worked with Japanese companies in Either GULF and South Africa Region.
Currently holding an position at abroad project in SA. (i have been on & off India for a month a so in between every two year except a long break of 09 months in 2018)
But now Starting from March 2020, i have started trading into NSE-NFO Market.
Was Thinking about ITR Implication in India ! (since i am paying tax in local resident country, If by any means India will ask for ITR due to the fact that i trade now, what would be the way ?? Really have no clarity)
Also so since i reside in many countries (Min:2 years in a country), I do not have a stable permanent account anywhere (Except India), so is there any way i can trade in USA Derivative Markets.
Sorry for the long post.