FAQ

Deca NRI Services

NFO new fund offerings Should I invest? -No, Not unless there is exceptional value on offer, which is seldom the case. Besides most of the NFO's do not meet our quality criteria
Fixed deposit's Are they safe? follow Bail-in, FSDR policy
Ancillary charges extra: File reopening fee to reopen lapsed service cards. Resubmission charge. Assessment charge. Follow-up and collection of clients bank statements for ITR filing. Change of bank account, Change of contact details (email & mobile), Tax status change (res to NRO / NRE or vice versa), Add / Change of nominee, Remove / add joint holder to the folio all, Change in portfolio (reshuffling), Change of advisory nil, Provide online access (Trading, Mutual funds) one time. Courier overseas / India, Stamp paper as per actual which will be intimated to client from time to time, Reimbursement of medical bills
Reactivation / Re-KYC - Govt regulations, dated Feb 10, 2020 have mandated that all Trading and Demat accounts be active and operational. Accounts which are inactive for more than 12 months will be flagged as ’Inactive’ in UCC database. We offer clients a pre-drafted email to request reactivation, there is no charge for this. However, many email requests are rejected and system calls for re-KYC, which will entail additional documents and charges a) Provide requested documents along with fresh monthly SSIP or ITR filing fee. Deca will bear the costs for reinstating account. No reactivation charges hereafter as trading a/c will always be kept active or b) Provide requested documents along with 2,350Rs reinstating, re-KYC, re-documentation charge
Disputes / litigation - In the event of a dispute between client and the custodian / principal, we regret that due to legal limitations Deca cannot comment on the matter. Client has following 2 choices a) negotiate settlement by themselves b) or in difficult cases assign case to third party legal counsel, with preset terms as follows i) authorization letter ii) earnest refundable deposit 5,000Rs or 10% of the disputed sum, whichever is higher iii) Full deposit refunded if client is not at fault and if client undertakes not to answer / deal directly / discuss with counter party while matter is handled by counsel
F&O Covered puts: Say you are having money and wish to acquire a stock. The stocks current market price (CMP) is say 100Rs but you wish to buy for 95Rs. You will need to sell a Put at a strike price (SP) 95Rs and collect a small premium of say 1Rs. At contract closing if the stock is below 95Rs you will have to take delivery at 95Rs and will get to keep the the 1 Rs premium. If the stock closes above 95Rs you get to keep the 1Rs premium and the contract closes and you can repeat the process again until the stock falls below 95Rs all while collecting a steady premium income every month. Such trades require a margin deposit which can be in the form of Shares / Funds.
How to participate - a) New client - Start a token SIP or SSIP for 10,000pm (min). You will receive monthly reports, stocks / funds will be picked / sold using information gleaned from our sources. b) Existing client - The fresh SIP or SSIP you start will be separate from your existing holdings and transactions, so that existing holding and your own transactions wont be disturbed.
My overseas company provides me with health cover. Why would I need fresh health cover in India? - It is highly advantageous as NRI's will not face the risk of being rejected for cover in case they have a pre-existing disease when they finally arrive to settle in India. If you develop diabetes, coronary or renal problems you may not get coverage from Indian health insurers or it will be 2-3 times the price.
Why is it advisable NOT to make any claims for first 5 years? - Every year without a claim, the coverage amount increases. After 5 years, the premium will still be the same but the cover will be much larger. This is highly advantageous, especially to NRI's as they can pay for their Indian health cover while they are still overseas but when they come to settle in India after 5-10 years the coverage would have increased significantly.
Rejected Trades & Contract notes - Bank's sometimes refuse to credit certain sale proceeds to clients NRE PIS a/c when it is unclear when the shares were bought or at what rate. This usually happens in the case of shares transferred in, bonus shares, dematted shares etc. Two options available are a) submit original hardcopy documentation along with 1,150rs processing charge and wait for bank to credit to NRE PIS b) ask that proceeds be credited to NRO instead, by return email. For this option there is no documentation, delay or charges. (Note: Client may utilize option to convert this and other accumulated NRO funds to NRE at some later date)
Closing or Transfer-out of trading and demat a/c - Clients are requested to attend meeting to discuss a) tax implication (if liquidating) b) NRE/NRO implications if transferring out from NRE demat c) review and settle pending demat and trading debits. Closure will be effected not earlier than 15days but not later than 30days after the meeting and/or receipt of all documents such as DIS slips etc. Applicable documentation charges.
F&O Portfolio Insurance - When you buy a car for 10 lakh you insure it against accident / theft to avoid loss. In the same way one can insure equity portfolio (Stock and Mutual funds) too from large collapse in the market. For example if you have a portfolio worth 10 Lakh, you can buy insurance (i.e. nifty Put options, for less than 0.30% monthly) to protect your portfolio partially from major falls. Check Calculation
What we do not do - a) We do not comment on clients own preferences / wishes / ideas / selections / modifications that fall outside our predefined parameters. b) We do not offer research report for free or even against payment. Our internal research notices are strictly confidential and for in-house use only. c) We do not comment on third party research / comments / claims / reviews / opinions / reports / calculations. We are fully aware of gimmicks such as Risk-o-meters, Star ratings, Haldane method, Crisil Rankings, Risk level 1 to 3, Indexation, TV experts etc. Most of these are 'paid for', and often used by RM / Agents to scare or manipulate clients. d) We do not provide 'Trading or Investment Tips'. We do not alert clients who have decided themselves on a stock / fund when there is a adverse change. e) We do not provide tips, issue buy or sell calls or comment on any particular stock or fund. What we do: We however deal with several Fund houses, PMS managers, Fund managers and most of all deal with several top investors on a day to day basis. From this we gain insight into the inner workings and methods and incorporate the same into the SIP and SSIP system for our clients
Financial adviser, what to look for? - Find a financial adviser who is in the same position / same organisation for at least 10 years and who has protected and grown his/her clients money through at least 2 complete market boom and bust cycles. Pay attention to their expertise and integrity. The same question asked differently
Kickbacks - We do not offer or take kickbacks
Modification of Terms - If you request a change or discount kindly provide copy of competing offer / quotation. Office will decide thereafter.
Statements and Online access - a) An email has been sent to you containing your designated email and password, see sample snapshot below. Please check Inbox as well as junk folder for this email, see sample below b) Click on https://arunanjaliwealthmagicin.wealthmagic.in/ and enter the designated email and password c) Once you have logged in you can independently obtain - Portfolio valuation, Gain/Loss, Rate of return, check Nominee, Gain/Loss statement for IT filing purpose etc. d) Should you require help / assistance in using the WealthMagic Online system we offer a FREE one on one 30minute training session at 12.30-1pm or 1-1.30pm IST Monday to Friday. During the 30minute session you will be shown how to use the various features of the software / statement e) From Jun 1, 2022, manual statements will be available on request basis and will be chargeable.
SSIP vs SIP - Ideal horizon SSIP 50 years (working lifetime), Min length 7 years. For horizons less than 7 years SIP is better. SSIP returns usually overtake SIP after 2-3 years thanks in part due to the Booster system.
F&O Covered calls: Say you are having stocks and are very happy with the growth but are now at a point where you are willing to sell and book profit. The stocks current market price (CMP) is say 100Rs but you wish to sell for 105Rs. You will need to sell a Call at a strike price (SP) 105Rs and collect a small premium of say 1Rs. At contract closing if the stock is above 105Rs you will have to give delivery at 105Rs and will get to keep the the 1 Rs premium. If the stock closes below 105Rs you get to keep the 1Rs premium and the contract closes and you can repeat the process again until the stock rises above 105Rs all while collecting a steady premium income every month. Such trades require a margin deposit which can be in the form of Shares / Funds.
Foreign Nationals, - Foreign nationals can invest via a Rupee denominated bank account under the Foreign Portfolio Investor (FPI) scheme. .
Is it wise to choose only the highest performing funds at time of investment? -Most people intuitively feel secure knowing that their funds are the highest performing. However we have noticed that many good funds go through a slow patch for 2-3 years at a time (eg: HDFC Top 200 between 2011-2013) only to bounce back spectacularly later. Therefore, it is not wise to select funds solely on percentage performance basis. What is more important than the performance percentage is the quality of management / assets and other parameters that we verify before we certify a fund fit for investment
How many funds to hold? - The largest mutual fund with 30,000cr portfolio has 80% of its investment in just 9 stock. Now you decide what is best for you
RIght time / price to buy - Whatever you decide you will be right at one time and wrong at another point of time. As they say, even a broken watch shows the correct time 2 times a day. There is no right time to buy / sell. What is important is the system of regular investing and regular balancing, using SIP and SSIP
RIght time to buy under SSIP - We have already tested data from the last 20 years, date of purchase makes no difference. Let say a SIP / SSIP is executed on the 25th, the next day the market falls. We are often asked why couldn't the purchase have been done on the 26th instead at lower cost? Didn't you know? Couldn't you wait a day more? Let us assume we buy on 26th, what happens then if the market falls further on the 27th or 28th? So which is the right time / price to buy? It is impossible to time the market but using Booster and Profit booking system built into the SSIP system, one can profit greatly
Parameters: Clients can select date of the SIP / SSIP. We offer 5, 15 and 25th. Clients can also select Foundation Stocks (max 5 upto 3 crore) and Booster percentage (min 25%). Above preferences can be changed once a year, more frequent changes will require approval from management and expensive changes in Software.
Credit: Credit facility may be offered to accounts in good standing, subject to management approval
Shares and F&O Statements and Online access - To check portfolio holdings with valuation, Gain/Loss, DP and Trading Ledgers, check Nominee, Contract notes, Gain/Loss statement for IT filing purpose etc. a) Tradeweb (SRE) software click here b) BO Plus (PhillipCapital) please click here. Note: Statements are usually available upto 1-2 years prior. If you need older statements they may need to be recovered from archives at additional cost. Just like a new car, once you have obtained a new account, we conduct a 30min onboarding session where you will be shown a) the live trading terminal b) how to use the various features of the software / statement c) clients view on stock d) buying and selling ideas e) Monthly SSIP f) futures & Options g) Tax planning h) Tax profit booking
No Documents / Unclear prima facie value - If a) you do not have or do not want to share any documents that establish ownership and value or b) if you have documents but the prima facie recoverable value seems to be nil / unclear but you still wish to double check in the System / Company / RTA if there is some Value (Shares, pending dividends etc) to recover then there will be a charge of Rs 1,500 per folio/person/company payable in advance for the investigation. On receipt of payment and authorisation letter we will check System / Company / RTA and provide you with a detailed report on recoverable value. If this is acceptable to you please inform our office to issue you a formal quotation with payment link. On completion of investigation client can decide whether or not to go in for recovery. Recovery charges extra.
Credentials: Walk-in clients sometimes ask - How can one tell if Deca is genuine? Kindly click on the flagcounter at the top of the relevant webpage and check the number of visitors in the past. Scroll down to view comments left by clients. Deca / Arunanjali has been in business since 1994 (2005 UAE), see About us, check out our work, clients on Facebook or Instagram. You are also welcome to visit our office / facilities personally, Contact us.
TAT (turn around time) w.r.t. Companies, RTA's and IEPF? Usually companies and RTA's have the obligation for a 30 day TAT on each service request and IEPF too has a 60 day TAT from the sate of companies Verification email but both TAT's are never adhered to
How long does IEPF take to credit back shares to demat account? It can 6 months or sometimes even 2 years depending on the company, RTA and IEPF respectively. IEPF is a govt. of India institution under the Ministry of corporate affairs (MCA) and is still in its early formative phase. There are still many teething troubles with IEPF eg: they introduced a new application form and suddenly started rejecting retrospectively applications made on their previous form. The management and staff are continually changing, phone lines unanswered, emails no response
Safety of document and submissions? Deca follows audited procedures while making / receiving submissions, especially of original documents. Documents once submitted are accountable and proof of delivery ensures that senders rights are fully protected. There is no reason to worry about original documents submitted. Other than original documents, some other statutory documents (specimen signature sheets etc) may have to be couriered too and may not be possible to accept via email. RTA & postal authorization letters are standard format approved by statutory bodies. All share certificates, dividend warrants etc are always in name in holder to safeguard holder. Hardcopy documents are always directed to / from our office to ensure speed, safety and accuracy of work. We only lend our address to work contracted to us.
Liaise with IEPF? Due to our long and reputable association with many companies and RTA's we have acquired contacts within IEPF too to help expedite our work. Clients can rest assured that we also have an internal tracking system that raises alerts periodically so that the matter is followed up with Co./ IEPF without delay on part of Deca
GST extra on charges mentioned above
Internal emails / contacts: emails to / from statutory bodies & contacts, strictly cannot be shared, forwarded or contents divulged to any other person.