Can NRE account be used for trading?

An NRE (Non-Resident External) account itself cannot be used directly for trading in the Indian stock markets. However, it can be linked to a PIS (Portfolio Investment Scheme) account which allows NRIs to invest in Indian equities (Buy and sell shares in the secondary market). Only the purchase and sale of listed shares are permitted.

With an NRE Non PIS account, NRIs can invest in IPOs, pre-IPOs, ESOPs and mutual funds through an NRE account.

An NRE PIS account is specifically meant for NRIs who wish to trade in the Indian equity markets. It operates under the guidelines of the Portfolio Investment Scheme of the RBI. All trades done through NRE PIS account get reported to RBI.