Why Long-Term Investing Beats Market Timing

Type of Authorised Dealer (AD)

An AD Category-I is a bank specifically authorised by the RBI to deal in forex and foreign securities. For providing greater reach, the RBI grants licenses to certain entities by authorising them as AD Category-II or Category-III or Full-fledged Money Changers to undertake a range of non-trade current account transactions. All transactions undertaken by a Resident that do not alter his assets or liabilities, including contingent liabilities, outside India are current account transactions. List of activities handled by different categories is available on www.fedai.org.in.

ROI, PIO and NRI

The Act uses these nomenclatures rather loosely. For clarity, we shall stick to the following nomenclature throughout —

• 'ROI' is a person Resident Outside India. Obviously, such a person may be a rank foreigner, PIO or NRI.
• 'NRI' is an Indian citizen (Indian Passport) who is not Resident.
• 'PIO' is a foreign citizen (Foreign passport) of Indian origin.
• Since most of the rules, regulations, provisions, etc., are common for both NRIs and PIOs, for the purpose of this book, NRI would include PIO, unless otherwise separately mentioned.