tumblr visit counter

Investing in India

Unfortunately, it is not possible for Australian Companies such as our SMSF to invest in directly in India as per Indian Government restrictions.

If you are  trustees of  a SMSF,  you will need to be the  Overseas Citizens of India who are allowed to make such investments.

You need to have Indian Tax Identifier numbers – PAN (equivalent of Australian TFN) and Non Resident External Bank accounts.

For example, if you would like to invest in Mutual Funds in India, you need to make sure the following:

-These mutual fund are regulated by SEBI (Securities and Exchange Board of India) – https://www.sebi.gov.in/

-Purchase and sale of units in these mutual funds will be done online using digital broking platforms such as Kuvera – https://kuvera.in/

-An example mutual fund is – https://amc.ppfas.com/.  This fund holds shares listed in Indian and USA Stock exchanges.

-Purchase and hold the mutual fund units in the name of both Individual Trustees of the SMSF and make a declaration of Trust giving absolute authority to the SMSF.

The above scenario is similar to purchasing real estate in India.

Any profits will be taxable in India. All after tax profit and invested capital can be freely repatriated back to Australia. You need to be confident in meeting all investing and tax obligations in India for such investments from your SMSF. In India, separate bank accounts and portfolio accounts will be maintained in the names of the trustees to easily track and account for all SMSF investments.

Again, the declaration of trust is all important.

The advice provided in this website is general advice only. Please seek professional advice before acting on any advice on this website.

Enquiry Now

Enquiry Now