NRI Investment Guide
How does an NRI invest in SBI Mutual Fund (SBI MF)?
A Common Application Form duly completed along with Rupee cheque or Rupee draft should be submitted / mailed to any of the Official Points of Acceptance of Transactions specified by SBI Mutual Fund (SBI MF). Investors can send their completed application forms with distributors appointed by SBI MF from time to time for onward submission to any of the Investor Service Centres. All cheques/DDs must be drawn in favour of "Name of the Scheme" and crossed "A/c payee" only and payable at the place where the application is submitted at the official point of acceptance.
An NRI choosing to invest in SBI MF currently cannot make the investment in foreign currencies. The NRI investor needs to give a cheque or draft in rupees from his/her NRE, NRO bank account in India. The NRI investor may also send a rupee cheque/draft issued by an exchange house abroad drawn on its correspondent bank in India. However, for an NRI to invest it is mandatory that he/she maintains a bank account in India.
Documents to be attached:
If an NRI investor invests in SBI Mutual Fund Schemes through Rupee draft/Bankers cheque, then any of the following documents should be attached along with the Application Form :
- A Foreign Inward Remittance Certificate (FIRC) or
- Confirmation letter issued by the bank confirming the source of funds or
- A photocopy of the Rupee draft/Bankers cheque
When the investment is made by a Rupee cheque issued out of a NRE/NRO bank account in India, a photocopy of the NRE/NRO cheque should be attached along with the Application Form. Post-dated Rupee cheque will not be accepted. Please ensure that the cheques are correctly dated at the time of submission of the application forms
How can an NRI carry out transactions like additional purchase / redemption / switching?
1st Option - Apply Online
Currently investors can only purchase units of our schemes online with redemption and switching possible only through conventional means.
If you would like to purchase units of our schemes and are a first time visitor to our site please take some time to register with us. Investors who have already registered with us can enter their username and password to transact online.
You would require an Internet Banking account login and pin with banks we have partnered with like SBI, HDFC Bank, IndusInd Bank, IDBI Bank and UTI Bank (more to be added soon). Read the Offer Document, risk factors and disclaimers for the fund. Fill the online application and transfer funds through the banks available, purchase will be recorded and processed as per the cut off time of respective scheme. Print a copy of the submitted online form which will be emailed to you, sign it (all holders as per the form) and mail it to our registrar.
2nd Option - Conventional
Once an account is opened, the NRI investor may transact by filling up the Common Transaction Form or by simply filling the details in the transaction slip attached to the statement of the account or transaction slip downloaded from the website and mailing the same to any of the official points (As mentioned in the application form which may change from time to time) of acceptance of transactions, along with the cheque or the bank draft in case of an additional purchase.
What address should be mentioned on the application form? Can an NRI mention a local address for all communication?
The application form of SBI Mutual Fund has a provision for local address, but the NRI/FII Overseas Address is mandatory. If the local address is also provided, in such cases, the Indian address is registered for the purpose of contact and the foreign as an alternative address. The Statement of Account will reflect the Indian address and the communication will be sent to this address only. However, if the investor wants the foreign address for the purpose of communication, the same can be registered accordingly.
What is the mode of payment for Repatriation and Non-Repatriation Basis?
NRIs can invest in units of the schemes on a fully repatriable basis or a non-repatriable basis where the principal is non-repatriable but the income distributions are repatriable.
- Purchase on Repatriable Basis: You are requested to make the payments by using the cheque from an NRE account or draft from an FCNR account maintained with banks authorized to deal in foreign exchange in India. NRE accounts can be opened in public sector or private sector banks in India. Send your application forms along with the payment at our Investor Service Center at the following address: SBIMF Investors Service Centre, Ilaco House, 2 nd Floor, Sir P.M Road, Fort, Mumbai - 400 001 . On confirmation of the documents sent by you, we will allot the units of the scheme at the NAV based prices prevailing on that day. If the payment is through foreign currency draft, the units will be allotted on the date of realization. Thereafter an account statement will be mailed to you within 5 working days.
- Purchase on Non-Repatriable Basis : P lease use cheque from an NRO account maintained with banks authorized to deal in foreign exchange in India. NRO accounts can be opened in public sector or private sector banks in India. Send your application forms along with the payment at the following address: SBIMF Investors Service Centre, Ilaco House, 2 nd Floor, Sir P.M Road, Fort, Mumbai - 400 001. On confirmation of the documents sent by you, we will allot the units of the scheme at the NAV based prices prevailing on that day. If the payment is through foreign currency draft, the units will be allotted on the date of realization. Thereafter an account statement will be mailed to you within 5 working days.
You are requested to instruct the bank branch through which you plan to make the remittance as to whether you have the NRE/ FCNR/ Special Non-resident Rupee Account to send the necessary FIRCs in original on security paper to the registrars to enable early processing of the application. A copy of these instructions to the bank may also be enclosed along with the application to expedite the follow-up by the registrars.
- FII Investors: FIIs may pay for their subscription amounts by way of Indian rupee drafts purchased abroad or out of the funds held in their Foreign Currency account or Non-Resident Rupee account maintained in a designated branch of an authorized dealer. The Rupee drafts/cheque should be made payable at a city where the application is accepted by any of the SBI MF official points of acceptance of transactions.
The cheque or the DD should be payable or drawn on which location?
The cheque/DD should be payable or drawn on the location where the application is submitted and accepted i.e. at the official points of acceptance of transactions of SBI Mutual Fund.
Will SBI MF accept an NRI application with an overseas bank account detail?
No. Overseas bank account details are not accepted as the payment is in Indian rupees by way of cheque/direct credits.
After an application for investment when will the units be allotted to the NRI?
If an application is received at the official point of acceptance before the specified cut-off time on any business day, the allotment of units at the NAV of the business day shall be applicable, with adjustments for any entry load, if any, as per the provisions of the Offer Document of the relevant scheme. All applications received after the prescribed time will be treated as having been received on the next business day and the units shall be allotted accordingly.
Is there any load charged on switching?
A switch has the effect of redemption (based on the redemption price on the business day of acceptance of switching request) from one scheme/plan/option and the net proceeds will be invested in the other scheme(s) at the prevailing Purchase Price for units as purchase in the other scheme/plan/option to which the switching has been done. However, the differential applicable Entry Load will be payable. (The entry load, of the scheme into which the investor is switching in to will be reduced by Entry and/or Exit Load already paid by the investor in the scheme he/she is switching out from as per the provisions in the Offer Documents of the relevant/respective schemes.)
How does an NRI investor redeem his/her funds?
In order to redeem funds the investor needs to submit the redemption request in original at the nearest official point of acceptance of transactions. All the redemption request forms must contain the investor's folio number, the amount/name of the schemes/unit he/she would like to redeem and should be duly signed by the unit holders on record or their Power Of Attorney (POA) holders. Redemption requests that lack valid signatures will not be accepted.
- Redemption on Repatriable basis: In order to redeem your investments from the scheme partly or fully, fill up the redemption form which is send along with the account statement. Send it to us the following address: SBIMF Investors Service Centre, Ilaco House, 2 nd Floor, Sir P.M Road, Fort, Mumbai - 400 001. We will process your request on the date on which we receive your redemption application at our office. We will send the redemption proceeds (with tax deduction at source) to the bank branch where you have your NRE account. An account statement will be sent to you at your address. You can repatriate the proceeds with the choice of currency from the bank.
- Redemption on Non-Repatriable basis: In order to redeem your investment from the schemes partly or fully, fill up the redemption form which is with the account statement. Send it to us the following address: SBIMF Investors Service Centre, Ilaco House, 2 nd Floor, Sir P.M Road, Fort, Mumbai - 400 001. We will process your request on the date on which we receive your redemption application at our office. We will send the redemption proceeds (with tax deduction at source) at a bank branch where you have your NRO account. An account statement will be sent to you at your address.
Is the Income/Dividend on mutual fund units repatriable?
The entire income/dividend received on investment will qualify for full repatriation provided the member continues to be a Non-Resident Indian in terms of [Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000]
Can a Power of Attorney (POA) holder invest on behalf of the NRI investor?
Yes. In a mutual fund the POA holder has the authority to invest on behalf of the investor and sign documents for initial and additional purchases as well as request for redeeming units from the account. While applying for purchase of units the POA holder needs to submit the original POA or an attested copy duly notarized. The POA should contain the signature of both the NRI investor and the POA holder. Only then the POA is registered and the POA holder has the right to transact on behalf of the NRI investor. The POA holder's signature will be verified before and for processing any transaction/request.
Attestation of the photocopy of the POA can be done by:
- The Notary himself or
- The Branch Manager of the bank where the NRI has his NRE/NRO Bank account. The name and the designation/code of the Bank Manager should be clearly mentioned.
- The Branch Manager of SBI Mutual Fund post verification with the original.
- POA should contain a clause empowering the POA holder to invest in securities on behalf of the NRI. Please note that a POA holder cannot nominate on behalf of the NRI.
Is nomination by NRIs allowed in the schemes of SBI Mutual Fund?
Can a resident Indian have an NRI as nominee?
Yes. An NRI can be a nominee subject to the RBI Exchange Control Regulations from time to time.
Can an NRI have a joint account in a scheme of SBI Mutual Fund with a resident Indian?
Yes. An NRI investor can have a joint holding with a Resident Indian or a Non-Resident Indian in a scheme of SBI Mutual Fund.
How does an NRI get updated on the performance of the schemes?
The NRI investor can log on to www.sbimf.com and request for a customer ID through which he can manage his investments online. Apart from these, the fact sheets are put up on a monthly basis, which contains details like portfolio and performance for a given period.