Can NRI buy IPO in India?

Yes. NRIs can invest in Indian IPO, NCD and Bonds. NRI IPO and Mutual Fund investment are permitted through the NRE as well as NRO Bank accounts. US & Canada clients can only invest if the company mentions in their IPO prospectus.

Some banks like ICICI Bank have started issuing UPI to NRIs as well. This makes it easy for NRI clients to apply for IPOs. Other banks should follow suit.

NRIs do not need any special approvals from RBI to buy or sell IPO shares. The IPO investment-related bank transactions are done through Non-PIS saving bank account. They are not reported to RBI.

Investing in IPO in India is online and easy if you have an NRI 3-in-1 account with a bank.

If you have your demat account with a broker who doesn't offer 3-in-1 account (i.e. Zerodha, Sharekhan, 5Paisa, ProStocks), you can still apply in IPO using the net banking facility of the bank where you have your Non-PIS Saving Bank Account.

Note:

• The Red Herring Prospectus of the issuer company provides the detail of NRI eligibility to invest in IPO.
• Few banks like ICICI do not offer online IPO to NRI customers.