Q&A for How to Buy Indian Stocks

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  • Question
    What do I need to know about buying foreign stocks?
    Marcus Raiyat
    Foreign Exchange Trader
    Marcus Raiyat is a U.K. Foreign Exchange Trader and Instructor and the Founder/CEO of Logikfx. With nearly 10 years of experience, Marcus is well versed in actively trading forex, stocks, and crypto, and specializes in CFD trading, portfolio management, and quantitative analysis. Marcus holds a BS in Mathematics from Aston University. His work at Logikfx led to their nomination as the "Best Forex Education & Training U.K. 2021" by Global Banking and Finance Review.
    Foreign Exchange Trader
    Expert Answer
    Keep in mind that you'll be exposed to the currency exchange rate. If the exchange rate drops by 20% and your stock goes up 20%, it could cancel out so you've made no money at all.
  • Question
    Can foreigners buy Indian stocks?
    Drew Hawkins1
    Community Answer
    Yes, foreigners can absolutely buy Indian stocks. You don't have to be an Indian resident either. The only requirement is that you open an account as a Foreign Portfolio Investor, or a FPI. You'll also need to register for a Permanent Account Number, or PAN card, which will allow tax authorities to track your investments and tax burden and is a requirement if you want to trade on the stock market. If you're just getting started, work with an Indian broker, who can guide you in preparing the necessary documents and help you open additional savings or bank accounts that you'll need in order to trade on the Indian stock market.
  • Question
    Is it a good time to invest in Indian stock market?
    Drew Hawkins1
    Community Answer
    Because India's economy is growing, it is a good time to invest in their stock market. Capital goods stocks and automobile stocks have been consistently on the rise and Indian stocks, in general, are one of the hottest global investments. If you're a foreign investor considering buying Indian stocks, get in touch with a local broker who can guide you through the process and help you file all of the necessary paperwork you'll need to legally trade on the market.
  • Question
    How can I buy shares in India?
    Drew Hawkins1
    Community Answer
    In order to buy shares or stocks on the Indian stock market, you'll need to register for a Permanent Account Number, or PAN card, so you're in compliance with the tax requirements. If you're a foreign investor, you'll need to open an account as a Foreign Portfolio Investor, or a FPI. Your best bet is to contact an Indian broker, who can guide you through the process and help you file the paperwork. They can also help you open a local banking account so you can trade on the market. If you're looking for advice on trading, go with a full-service broker who will help you invest for a fee or percentage of your profits.
  • Question
    Can I invest directly without any broker's help?
    Community Answer
    Brokerage is a licensed business, An individual cannot enter the stock market without an intermediary.
  • Question
    How could I start investing in Indian stock and shares from South Korea (I am Indian)?
    Community Answer
    Open an account in an international brokerage company or an Indian one. The Indian and South Korean stock markets are easily accessible for a person from almost every country with open financial markets.
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