Earning through Investment made in Global Market

  • 9 November 2016 | 1273 Views | By Mint2Save
Global Market

Thanks to the modern tools and avenues that have made the world so little that every corner of the world seems in the palm. The whole world  appears a single home or market to most of us these days.

This is a fact that each one is a seller and buyer, both in one or the other manner and, fundamentally this is the basis of symbiosis i.e. the pattern of life, showing the essential mutual dependency of each one on the other.

Now, both the above mentioned facts are amalgamated for discussing or expressing the method of making earnings through investment made by an Indian investor in the international market or in other words, global markets. The mode of making investment is almost the same i.e. through purchase and sale  of shares, bonds or investing mutual funds and so on. As stated earlier, considering the whole world as one single market will help an investor to expose, develop and let their leverages inherent strengths through greater and larger fields exposed for diversified business. For example, for commodities Latin America, for services Asian region and for highly diversified economy the United States can be compounded  to enjoy a bigger and diversified market for earning through global market, especially, for investors from emerging regions like India and others from BRICS(comprising a highly promising developing economies), all having specific industries out performing each other.

The retail investor can carry out investment in global market through demat account, only. For, this at least following procedure:-

  1. Opening a trading account with an authentically authorized Indian broken house facilitating investment in shares of some foreign companies having shares listed in the respective country`s stock exchange
  2. The broker must have a tie-up with a foreign brokering house licensed to act as an intermediary and execute trades on your behalf in the respective country`s market as the Indian broker shall perform the task of an introducing intermediary between investor and foreign broking house.
  3. The broker would assist in  opening of  the account and completion of all formalities essential per the laws of the related country (like K.Y.C. etc. of the respective country.)
  4. Following the registration, aftermath requirement is furnishing the bank account details of the foreign broker to whom the funds are to be transferred by the investor for carrying out trading and contact details of the account executive who will take full care in case of assistance needed.
  5. Now, the investor is supposed to furnish forms A2 to his banking house for remittance of funds as the foreign broker shall accept funds from the investor`s bank account only and obligatory reject any third party fund transfer.Nor, the foreign banker shall accept the banker`s cheque/drafts or cash.
  6. The trading account portal shall get activated once the account is opened and the foreign broker receives funds.
  7. The investor shall be facilitated by allotment of log-in Id. and password facilitating immediate access to foreign broker`s trading platform and enjoy trading through purchase and sale of shares of the companies listed in the respective country`s stock exchange.

Since the international/ global appears more tough and risky while compared to normal marketing within the periphery of the nation, the global marketing could not become popular amongst the common investors. The matter becomes more complicated if Currency, tax pattern/treatment and lack of research etc., are taken into considerations.

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