Re: [nukkad] Earnings in savings scheme

["indian rediff" <>]

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Aryaji,

I waited awhile to see if anyone would jump on this one.

I presume you mean 'non-resident alien' where you said 'non-alien resident'. - because any person born in America is a non-alien, ans long as s/he resides in the US s/he can be classified as a resident :-)

OTOH, a 'non-resident alien' is anyone that was NOT born in the US (alien) and lives abroad (which is the remainder of the 5.7 billion people on this planet).

There are no restrictions imposed on aliens owning stock in the US. You can open an account with a brokerage or have it as an offshore account (presuming you are rich enough to have that). From a tax perspective, it is infinitely better to have an offshore account. Also, make sure that this entity with whom you have an account provides you with custody services. Once these formalities are completed, it is a fairly simple matter to open a non-discretionary account with any brokerage simply for the purposes of trading and have standing instructions that all settlement will be done by your custodian. 

You would be best advised to talk to a tax consultant as regards the tax situation etc. Since I am not such an expert, my advice is worth what you are paying for it :-)

In the 80's the Japanese used to hold lots of US securities including US obligations such as the Treasury Bills, Notes and Bonds. Even today, he Japanese hold so many US Treasury obligations, that there is the perennial fear that the Japanese could dump them and force the bond market to crash. Fortunately the Japanese get more in interest in US $ than they would in Japanese Yen. Hence the market is still stable.

Hoep this was interesting.

----- Original Message -----
From: "aryaone" 
Date: Mon, 29 Apr 2002 18:07:21 -0700
Re: This is off the subject and the US market did not do well lately, but
Re: can a non-citizen, non-alien resident invest in US stock market?

-- 


Indian (Sai)

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