Sell Fidelity US stocks and do Inward remittance

[CC-Muncher]

I have some US stocks in my company-linked Fidelity account. They are going to vest in the coming months and I want to be prepared to sell and encash them as soon as they vest.
I went through this informative thread and knew that IOB offers the best rate.
If required, I am ready to open a new bank account to save on charges.

Although, I need guidance and want to learn from your experiences about the whole process and experience of selling US stocks from the Fidelity account and transferring it to an Indian bank account. My end goal is to cut down on charges as much as possible.

P.S. I am a newbie and don't know any jargon on remittances. Please go easy on me 🙂

Update:
- Which intermediary to choose for facilitating inward remittances?
I found this list of correspondent banks for HDFC Bank. Do this intermediary charge? if yes which one charges minimal? ( J P MORGAN CHASE BANK - seems to be a good option)

Update: 22 May 2023
I got my inward remittance to IOB and here are the details:

Fidelity --> IOB (No intermediary bank added)

The amount transferred - 100 USD (Indicative figure)
Transfer fee 0 at Fidelity
Credited Rs. 8032

After 4 working days:

On the date of credit, the IOB rate - Rs. 82.54 (Market rate was 82.79)
Expected 82.54*100 = 8254
Difference = 8254-8032 = Rs. 222

Charges Breakup
COmmision/Fixed charge -> Rs. 177 (150 fixed charge x 1.18 GST)
GST from govt on currency conversion - Rs. 45

Different GST Rates from govt on currency conversion ->
Up to 1L -> 0.18% of ACE with a minimum of Rs. 45
1L to 10L -> 180 + 0.09% of (ACE - 1,00,000)
Above 10L -> 990 + 0.018% of (ACE - 10,00,000)

(Thanks @FatReaper for charges breakup)

 

[CC-Muncher]

Being using IOB from a long time, their rates are good and best in the market.

Can you shed some lights on charges ?

 

[xxScriptzxx]

Can you shed some lights on charges ?

Charges are standard (processing fees etc). Their forex rates are best in market. I have done inward remittance in hdfc (hdfc gives 5/6 paise less based on corporate)and iob both, but iob beats everyone.

You can also refer this chart, https://forex.geekdevs.com/USD

 

[xxScriptzxx]

My remittance with IOB was completed today. Rates were quite amazing ~20p lower than today's price, considering Axis offered 1.2-1.5INR lower rates including the fees. Great experience so far.

Did IOB report to income tax ? Can you check your AIS. Hdfc reports all forex transactions above a certain limit to income tax

 

[CC-Muncher]

Charges are standard (processing fees etc). Their forex rates are best in market. I have done inward remittance in hdfc (hdfc gives 5/6 paise less based on corporate)and iob both, but iob beats everyone.

You can also refer this chart, https://forex.geekdevs.com/USD

I checked with HDFC customer care and they told about below charges:
Conversion charges - 1000 +gst (Above 10k rs)
Service tax - 0.018% of total amount
Also, they did not entertain any negotiation on USD-INR rate.

@xxScriptzxx Are there any other charges that you are aware of?

 

[0xfallup]

can someone clearly state what are the charges implied IOB ..can u give me a number

 

[Dragon_slayer]

Did IOB report to income tax ? Can you check your AIS. Hdfc reports all forex transactions above a certain limit to income tax

I didn't check. But does it matter? I mean, we are going to report it at the end of the year anyways when we file taxes.

 

[xxScriptzxx]

I checked with HDFC customer care and they told about below charges:
Conversion charges - 1000 +gst (Above 10k rs)
Service tax - 0.018% of total amount
Also, they did not entertain any negotiation on USD-INR rate.

@xxScriptzxx Are there any other charges that you are aware of?

Negotiation is based on corporate tie up with hdfc for forex rates. Conversion charges / service tax for iob can be seen here , https://www.iob.in/upload/CEDocuments/ScheduleofChargeswef10022020.pdf.

 

[xxScriptzxx]

I didn't check. But does it matter? I mean, we are going to report it at the end of the year anyways when we file taxes.

Some corporates pay taxes before stock gets vested and leave it upon the employee to pay the difference when the stock actual vest. To fix this, IT has started asking banks to report, some do and some dont. IOB has never done till now, i am not sure of the current situation

 

[xxScriptzxx]

can someone clearly state what are the charges implied IOB ..can u give me a number

You can check the same here, https://www.iob.in/upload/CEDocuments/ScheduleofChargeswef10022020.pdf

 

[VijayflyRaven]

Not exactly sure about the time, but I think not more than 2-3 days

Did they contact you to get purpose code/ reason? How was that experience?

ICICI sends automated link where I enter purpose code (once a year) and amount gets transferred in few hours. At least will iob call us after make the transfer?

 

[Dragon_slayer]

Did they contact you to get purpose code/ reason? How was that experience?

ICICI sends automated link where I enter purpose code (once a year) and amount gets transferred in few hours. At least will iob call us after make the transfer?

It got credited directly. No ques asked.

But I want to add, that I met the remittance guy at branch and explained my case to him, maybe he took care of it. IDK.

 

[beingmohit]

Charges are standard (processing fees etc). Their forex rates are best in market. I have done inward remittance in hdfc (hdfc gives 5/6 paise less based on corporate)and iob both, but iob beats everyone.

You can also refer this chart, https://forex.geekdevs.com/USD

I wish the dev added a tracker for PNB too. Any idea about their rates?

 

[CC-Muncher]

I wish the dev added a tracker for PNB too. Any idea about their rates?

Every bank has there own site for forex rates.
here is the link for PNB https://www.pnbindia.in/downloadprocess.aspx?fid=A+rrvZeJc+PIaxfEqVTIQQ==

 

[rohitpgarg]

Is it possible to transfer money from US stocks directly to platform like groww/indmoney?

 

[CC-Muncher]

Is it possible to transfer money from US stocks directly to platform like groww/indmoney?

I've seen people transfer to non-financial institutions like Wise (earlier Transferwise), and PayPal.
Not sure about grow/indmoney vested etc.

 

[akashasnani]

Charges are standard (processing fees etc). Their forex rates are best in market. I have done inward remittance in hdfc (hdfc gives 5/6 paise less based on corporate)and iob both, but iob beats everyone.

You can also refer this chart, https://forex.geekdevs.com/USD

if possible also add rates of wise

 

[CC-Muncher]

FYI @yaathran @sleepysurya @Harry1 @Dragon_slayer @787 @dmittal - I have updated the post with a sample transaction With IOB.

Very good experience with IOB.

 

[0xfallup]

FYI @yaathran @@sleepysurya @Harry1 @Dragon_slayer @787 @dmittal - I have updated the post with a sample transaction With IOB.

Very good experience with IOB.

Can u specify charges

 

[CC-Muncher]

Can u specify charges

Already mentioned the charges break up, which part you want to be simplified?

 

[0xfallup]

Already mentioned the charges break up, which part you want to be simplified?

just for example , how much u remitted and how much u got