What types of accounts are permitted to be maintained by NRI for Trading?

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

An NRI is required to maintain an NRI Trading Account,NRI Demat Account, and an NRI Bank Account to trade and invest in Indian stock markets. In addition to this, an NRI needs a PIS approval from RBI to trade on a repatriation basis. With recent changes in RBI rules, the PIS approval to trade on a non-repatriation basis has been waived off.

The NRI accounts are further classified as Non-Resident External (NRE) account or Non-Resident Ordinary (NRO) accounts based on the repatriability. An NRI is required to open an NRE to trade with repatriation benefits and NRO account to trade without repatriation benefits.

In addition to the above, an NRI is required to open an account with the custodian to trade in derivatives. However, if the broker is providing the clearing services to the NRI clients, an NRI is not required to open a separate custodian account. The broker/custodian can apply for the custodial participant (CP Code) required for F&O trading.

Summary of accounts required for NRI Trading:

Investment Type	Accounts (repatriation basis)	Accounts (non-repatriation basis)
Equity	NRE PIS Bank account NRE PIS Trading Account NRE PIS Demat Account	NRO PIS/Non-PIS Bank account NRO PIS/Non-PIS Trading Account NRO PIS/Non-PIS Demat Account
Derivatives	N.A. *Not permitted to trade on repatriation basis	NRO Non-PIS Bank account NRO Non-PIS Trading Account NRO Non-PIS Demat Account CP Code
Mutual Funds	NRE Bank account NRE Trading Account NRE Demat Account	NRO Bank account NRO Trading Account NRO Demat Account

What types of accounts are permitted to be maintained by NRI for Trading?

Comments

Find more questions on this topic