What is Vested.io?
Vested is an SEC-registered investment adviser in the United States.
The registration of an investment adviser does not imply any specific level of ability or training, nor does it reflect the Commission’s endorsement of the firm. Vested Finance Inc. only does business in places where it is lawfully registered, or where it is excluded or exempted from registration. A copy of Vested Finance Inc.’s most recent written disclosure brochure, which outlines Vested Finance Inc.’s business practises, is accessible on the SEC’s website at: www.adviserinfo.sec.gov.
Security of Vested
To enhance the security of our platform and protect your information, Vested employs 256-bit encryption and Secure Sockets Layer (SSL). To help prevent unwanted access, we also use cutting-edge login mechanisms, automatic logouts, and ID verification.
Legality of Vested
Vested adheres to the criteria of the RBI’s Liberalized Remittance Scheme (LRS). The LRS, which was established by the RBI, is a collection of policies that control the maximum amount and purpose of remittance. Under the LRS, an Indian resident can send up to USD $250,000 abroad each year without obtaining RBI approval. The LRS has made it easier for Indian people to study abroad, travel, and invest abroad.
The latest recent regulations can be found on the RBI’s website. Please check article 6(iii) for relevant LRS regulations governing stock investments.
What is the process of fractional investing?
You can invest in full or fractional shares on the Vested platform. When you make a complete share investment, our broker partner (DriveWealth) will route your orders to market centres on an Agency basis. When investing in fractional shares, our broker partner will fulfil the order on a Principal basis from its own account at the National Best Bid or Offer (NBBO). DriveWealth cannot add a margin to the pricing because it is NBBO. So, if the market price of one Amazon share is $1,000 and you buy 0.1 share, you will pay $100 for the 0.1 share. Any orders for whole or fractional shares will be handled in both ways, as Agent and Principal.
Is it possible for Indian investors to invest in the US?
The Reserve Bank of India (RBI) enables an Indian resident to invest up to USD $250,000 per year in international markets under the Liberalised Remittance Scheme (LRS).
Taxation
There are two sorts of taxation events available to Vested users:
(1) Taxation on capital gains: This profit will be taxed in India. You will not be taxed in the United States. The sum of taxes paid in India is determined on the length of time you retain the investment. The long-term capital gain threshold is 24 months, and the tax rate is 20% with indexation benefit. Short-term capital gain is defined as less than 24 months and is taxed according to your income tax bracket.
(2) Dividend taxes: Dividends, unlike investment profits, will be taxed at a fixed rate of 25% in the United States. Fortunately, the United States and India have a Double Taxation Avoidance Agreement (DTAA), which allows taxpayers to deduct income tax paid in the United States. The 25% tax you already paid in the United States is available as a Foreign Tax Credit and can be used to offset the income tax you owe in India.
Documents required to open an account
You will need to provide proof of identification as well as proof of address. Please keep in mind that all bills and statements must be within the last three months and must bear your name. The entire procedure is paperless and takes only a few minutes to complete.
In case of a shut down of Vested, what happens?
If such a situation occurs, your assets are held by a third-party custodian, and Vested will never touch or hold any of your money. If Vested goes out of business, you will still have access to all of your cash and assets because we will set up direct DriveWealth access for you to continue buying and selling stocks. Your SIPC insurance kicks in if both Vested and DriveWealth go down for any reason. SIPC (Securities Investor Protection Corporation) insures each Vested brokerage account up to $500,000. This includes a cash payment of $250,000.00.
