SBI Securities NRI Account Review

State Bank of India (SBI) offers a range of trading and investment services to NRIs through an NRI 3 in 1 account. The account helps NRIs to trade and invest in Equity, Derivatives, Mutual Funds, Depository services, and a variety of Third Party Distribution products.

SBI has 198 foreign offices spread over 35 countries. It also has a correspondent banking relationship with over 402 banks and 24 Exchange companies. SBI also has a dedicated team of Relationship Managers in Middle East countries to serve NRIs in the GCC region.

SBI provides detailed research services for NRIs with information and insights on the market. The reports are prepared by expert analysts after in-depth analysis of the market scenarios, economic events and trends.

For NRIs Residing in the US, UK, Canada and Japan

SBI does offer 3-in-1 account but does not solicit investments from NRIs based in the US, UK, Canada and Japan due to regulatory restrictions. NRIs from these countries need to diligently study regulation for each financial product/service before investing. They should consult their tax advisor regarding statutory reporting requirements or taxation rules before investing in the products.

According to the US Securities Exchange Act, 1934, it's against the law for unregistered foreign brokers to offer services to or solicit residents of the US. These regulations apply to foreign brokers around the world. While this may seem restrictive, the SEC here is only trying to protect the interest of investors based in the US.

SBI NRI 3 in 1 Account

SBI Bank in partnership with its subsidiary SBICAP Securities Ltd (SLL) offers NRIs 3 in 1 account facility. NRIs can open 4 accounts with a single application. It also saves them from hassles like fund transfer from PIS to the trading account, transaction reporting to RBI and facilitates faster trading. The SBI NRI 3-in-1 account includes:

1. NRI Portfolio Investment Scheme (PIS) Account
2. NRI Demat Account
3. NRI Trading Account

1. SBI NRI PIS Account

   SBI helps NRIs in opening and maintenance of PIS saving bank account. This bank account is for NRI customers to trade in the stock market. All transactions from this account are reported to RBI by the bank. Note that only PIS bank account can be used by NRIs to trade in India Stock market.

   SBI also offers Non-PIS NRE & NRO bank accounts to NRIs to cater to their financial and investment needs. These accounts are used for bank transactions which are not required to be reported for RBI.

   Read NRE vs NRO Account to understand the benefits of each account and difference between them.

2. SBI NRI Demat Account

   The NRI Demat account SBI is an online account to hold securities like stocks, IPO shares, Mutual Fund units, and bonds, etc.

3. SBI NRI Trading Account

   The Trading account gives NRIs access to BSE and NSE to trade across stocks, derivatives, and ETFs.

NRI Demat Account by SBI

SBI is a depository participant with CDSL and NSDL. It offers various depository services to NRIs. They can open 2 types of demat accounts:

1. NRE Repatriable Demat Account
2. NRO Non-Repatriable Demat Account

SBI NRI Demat Account Review

1. The SBI Demat Account is the same for residents and non-resident Indians.
2. An NRI has to choose the account subtype as Repatriable or Non-Repatriable.
3. An NRE or NRO bank account has to be linked with the demat account.
4. The dividend or bonus earnings are auto-credited to the linked NRE or NRO bank account.
5. The State Bank of India NRI demat account is a safe way to keep your holdings.
6. It is mandatory to open a demat account to invest in stocks, mutual funds, IPOs, and bonds, etc. in India.
7. The demat account can be opened jointly with another NRI.
8. Online access to demat account

For an in-depth understanding of Demat Accounts For NRIs Opening Process, Rules & Charges, read our article on NRI Demat Accounts.

SBI NRI Trade Process

SBI offers a completely online trading experience to NRI investors. Once your SBI NRI share trading account is opened, the step-by-step SBI NRI trading procedure is as follows:

1. Placing an Order

   Login to any of the online trading software offered by SBI and place a buy/sell order online. The system will check the funds (in case of a buy order) or securities in your demat account (in case of a sell order). If everything is alright then your order will be executed on the exchange.

2. Debit/Credit from Bank & Demat Account

   Depending on whether it is a buy or sell order, your linked NRI bank account will be debited or credited with funds. Similarly, the linked NRI demat account is automatically credited or debited with securities. Please note that for sell orders, the credit of sales proceeds and debit of securities from demat accounts happen in T+2 days with T being the date of transaction.

3. Reporting

   All your trading transactions are automatically reported by SSL to SBI Bank for onward reporting to RBI as per the regulations.

SBI Securities NRI Trading Software Review

SBI offers the same trading platform to NRIs as well as resident Indians.

It offers After Market Orders (AMO) to NRIs to help them a place to buy/sell orders at any time of the day.

SBI offers a range of online trading software and tools:

1. SBISmart.com (Web-based Trading Platform)
2. SBISmart Xpress (Desktop Trading Software)
3. SBISmart Lite (Website Trading at Low Internet Speed)
4. SBISmart Mobile App
5. Call & Trade Facility

SBI Smart Website

SBISmart Mobile App

SBI Securities NRI Account Opening Process

Opening an SBI trading account for NRI is easy. You need to fill the following applications-

1. NRI SB account opening form

   You can fill the form online as well as download the form and fill it.

2. NRI PIS account opening form

   Download the SBI PIS form

3. Demat and Trading Accounts opening form

   Download the application form for trading and demat account.

Please fill following account opening applications, attach required documents and send it to your desired SBI home branch in India.

SBI NRI Documents

• PAN Card
• Passport
• VISA / Resident Permit / OCI / PIO Card
• Foreign Address proof
• Indian Address proof
• Latest SBI NRE / NRO Bank Account statement
• Canceled cheque leaf as MICR proof or SBI bank letter
• Valid TAX Proof
• Photographs (3 each)
• RBI permission *
• General Power *

* These documents will be issued by SBI, NRI branch Mumbai

All the documents (other than RBI permission and general power) needs to be duly attested by anyone of the State Bank of India officials (with their SS number)/ Notary Public/ High Commissioner or Indian Embassy / Consulate General in the country of your residence.

Note:

• You can open both NRO and NRE accounts with SBI. However, you are allowed to link only one of the bank accounts with SBI NRI Trading account.
• Linking your NRE account with the trading account will allow you to trade only in the Equity segment. Linking an NRO account will allow you to trade in both Equity & Derivative segments. You can map both the bank accounts by opening 2 NRI trading accounts.
• NRIs can trade only in equity and equity Futures & Options.
• SBI doesn't offer NRI trading services in intraday, currency, and commodities.

SBI Securities NRI Mutual Fund

SBI offers a convenient and seamless way to purchase and redeem mutual funds units. NRIs can invest in a wide range of mutual funds including Money Market Funds, Debt Funds and Equity Funds. NRIs who don't have a trading account with SBI can also invest in mutual funds.

An NRI can purchase Mutual Funds through Demat mode as well as Physical mode. You can transact in MFs through the exchange as well.

Additionally, SBI also offers the facility to buy and sell mutual fund units through Systematic Investment Plan (SIP) in which an NRI can invest periodically as per their requirement and convenience.

Key Facts about SBI Mutual Funds for NRI

• Mutual funds from all the AMC's are available to invest. i.e. HDFC, UTI, ICICI
• Currently, SBI offers only Equity schemes on its website. For other schemes, the customer has to submit a physical application form.

SBI Securities NRI Trading Account Advantages

1. The largest bank in India with the highest number of branches.
2. Offer 3 in 1 account for convenient online trading
3. Free expert recommendations on trading & investments
4. Assistance from Relationship Managers
5. SBI securities NRI opening fees are lowest among full-service brokers.
6. Mutual fund services are available to NRIs who don't have a trading account.

SBI Securities NRI Trading Account Disadvantages

1. Only Equity-based mutual funds are available for online investment. For other types of Mutual Funds, NRIs can only apply using a physical form.
2. The brokerage rates are higher when compared with discount brokers like Zerodha and Prostocks.
3. Doesn't offer Good-till canceled (GTC) order.

Conclusion

SBI has one of the largest branch networks among Indian banks in the world. This helps NRIs in availing in-person services on their country or city of residence. The brokerage rates charged by the company are competitive among full-service brokers. The 3-in-1 account, online trading, free research and advisory, Mutual Fund, FD and IPO investment make them attractive to most NRIs.

Frequently Asked Questions

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Information on this page was last updated on Wednesday, June 12, 2024