How can I invest in Indian stock market?

Question

I am in USA. What is best way to invest in stock market in India from USA? What is impact of my TAX filing in USA which I earn from India?

Answer 1

The easiest way would be to invest in American Depositary Receipts (ADRs) of Indian companies traded in the U.S.; there are quite a few, including Infosys (NasdaqGS:INFY), Satyam (NYSE:SAY), Tata Motors (NYSE:TTM), and ICICI Bank (NYSE:IBN). This will provide you with some exposure to India.

If you want to go deeper, you will need to open an account with an Indian brokerage house and transact through them. Alternatively, you can open an account with someone like Auerbach Grayson (www.agco.com), which specializes in selling foreign securities to U.S. investors through partnerships with foreign brokers. Either will involve quite a bit of paperwork and will confuse the hell out of your tax accountant (most of those guys have never done a tax return involving foreign investments).

Speaking of tax returns, your broker (whether in the U.S. or in India) will automatically withhold Indian income taxes from dividends paid by the stocks you hold; you can get a tax credit for them in the U.S., if you know how to do the paperwork. Capital gains are taxed in the U.S. at usual rates, so there is nothing to pay in India and no additional complications in the U.S.

Answer 2

taxes: the taxes are as if you had earned the money investing in U S companies with one exception. Any Indian taxes you pay on your investments are used as credits against your U S taxes, provided you fill out your tax forms correctly.

There are some Indian companies traded in the U S, not a lot but some.

There are two closed end funds that you can buy that invest only in Indian companies--INF and IIF. I believe there is also a mutual fund, but the name slips my mind.

Here is a link to Indian companies traded as ADRs in the U S. Note the ones traded on th U S exchanges only.

http://www.adrbny.com/dr_directory.jsp

I believe there are some that traded on the pink sheets that are not adrs but they are very difficult to find.

If you call the major brokers, you will most likely find one that will purchase you shares directly from the Indian markets. You can check Goldman-Sacs, Merrill Lynch, etc.

Answer 3

The best way to invest in India is to buy the Barclay’s iPath MSCI India Index (Ticker Symbol: INP). INP trades just like a regular stock, but it tracks the movement of the Indian Stock Market. So if the Indian stock markets finishes up 30% on the year, INP will also be up by 30%.

Answer 4

If you are earning from your investments then you should be paying your taxes to the government (whether in india or in usa) as the govt takes taxes to provide better aminities and social securities to the citizens of respective country.

For investing in india you are required to get your trading account opened with any Registered broker associated with National stock exchange (mumbai) or bombay stock exchange (mumbai) who in return would give you the online trading terminal through which you can start your trading or investment activities.

Some of the associated Broking companies are
www.icicidirect.com (icici bank's subsidiary)
www.indiabulls.com
www.motilaloswal.com (motilal oswal)
www.sharekhan.com

and there are lot more which you can find it at www.nseindia.com or www.bseindia.com

on contacting any of the above broking companies then would contact you for getting your a/c activated.

keep enjoying.... trade cautiously

with warm regards

Govindarajan
http://www.bcozindia.com/

Answer 5

You can check the NYSE website and see if they trade the indian companies you are interested in. Many international stocks are traded in US stock exchanges. If you want to trade directly, you would have to find a broker in India. Most large international banks such as Citi and Standard Chartered will have brokerage services in that market.

Answer 6

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Answer 7

The easiest way to buy Indian stocks is through ADRs. Here are my favorite Indian companies that trade in the US as ADRs. I like IBN a lot:

http://www.top10traders.com/ViewPortfolio.aspx?userID=13

This link is from http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks and see how your picks compare to other investors.

Hope this helps.

Answer 8

There are many companies from India trading on the NYSE and NASDAQ.

Answer 9

in line with possibility one million% of the inhabitants of India. in basic terms of venture on my area. there are extremely some human beings international extensive besides the fact that that positioned money into Indian shares. I do as an occasion. in line with possibility one million% of the inhabitants of GB, US, and Germany. in line with possibility.