Are you an NRI and want to invest in Indian Stock Market but don't know how. Don't worry because in this article you will get all the information to begin your journey as NRI Trader. To know about NRI Trading in India, let's go step by step and learn. Who is an NRI? What is NRI trading? Types of Accounts NRI can open? A list of the brokers who offer NRI Trading services in India? What is NRO account? What is NRE Account?
Contact us to open NRI Trading Account with your Name, International Number, Email ID, City and County.
With the recent amendment in FEMA regulation, NRIs with NRO Bank Account can now invest in the equity market like resident individuals. Earlier NRIs were allowed to invest in the equity market through a PIS account only. Now PIS account is required only if you have NRE Bank Account by which you can repatriate (take out the funds out of the country).
NRI with NRO Account can trade in Equity Delivery as a normal resident Indian. You need to open a normal trading and demat account and link it to your NRO Saving Account.
NRI is no longer required to open PIS Bank Account for investment in Indian stock market without repatriation benefits.
Yes, With RBI Circular on 2nd Feb 2017, NRIs access to the exchange traded currency derivatives(ETCD) market to hedge currency risk arising out of their investments in India. With this change NRIs may take positions in the currency futures/exchange traded options market.
For More detail please contact your broker.
NRI or Non Resident Indian is a person residing outside India who is an Indian citizen and holding Indian passport. The purpose of staying outside India for an uncertain time period can be employment, business, education, training etc.
Kotak securities offer all three accounts for NRIs i.e. Saving bank Account, Demat Account and Trading Account named as Trinity Account. Kotak Mahindra bank is a designated bank for issuing PIS.
ICICI's 3-in-1 integrated account enables you to tie in your savings bank, demat and brokerage accounts electronically and seamlessly. You can invest in equities, derivatives (F&O), mutual funds, IPOs, ETFs through your ICICI NRI account.
|ICICI Total Turnover (per month)||ICICI NRI Brokerage|
|Above Rs 50 lakhs||0.50%|
|Rs 25 lakhs to Rs 50 lakhs||0.75%|
|Rs 10 lakhs to Rs 25 lakhs||0.90%|
|Rs 5 lakhs to Rs 10 lakhs||1.00%|
|Up to Rs 5 lakhs||1.25%|
|Total Turnover (per month)||ICICI NRI Brokerage|
|Above Rs 20 Crores||0.03%|
|Rs 10 Crores to Rs 20 Crores||0.035%|
|Rs 5 Crores to Rs 10 Crores||0.04%|
|Up to Rs 5 Crores||0.05%|
|Total Turnover (per month)||Per Lot Brokerage|
|Above Rs 20 Lakhs||Rs 70|
|Rs 10 Lakhs to Rs 20 Lakhs||Rs 75|
|Rs 5 Lakhs to Rs 10 Lakhs||Rs 85|
|Less than 5 lakhs||Rs 95|
HDFC offers 3-in-1 account for NRIs to invest in India. This account combines banking, broking and demat account which makes your equity trading seamless and hassle-free.
AxisDirect, the online trading portal of Axis Securities Limited, a 100% subsidiary of Axis Bank offers3-in-1 account integrating bank, demat and trading account seamlessly enabling hassle free transactions.
Invest in Equities, Initial Public Offerings, ETFs, Mutual Funds and Futures & Options with AxisDirect NRI trading account.
This means the Broker offers Trading and Demat Account and you have to link the NRE or NRO Account open externally through Bank to your trading Account.
The list of brokers who provides NRI Trading and Demat Account with discount/flat fee brokerage.
Simply leave your contact information with us and ProStocks representatives will call you.
Simply leave your contact information with us and Zerodha representatives will call you.
TradePlus NRI Account enables you to invest and Trade in Equities and Derivatives listed on NSE and BSE. You can also invest online in Mutual Funds and IPOs using this Account. They have tied up with HDFC Bank, Axis Bank and Yes Bank.
Sharekhan provides NRI Investment Services having tie up with HDFC Bank for RBI approved NRE or NRO Bank Account.
This the list of general documents required by any broker. The list may vary depending upon your broker.
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We can help you to open your NRI Trading Account, You can Contact us with required informatio like Name, International Number, Email ID, City and County.
Last updated on 30th Jul 2019
The NRE Bank Account is Non Resident External Account. Since it is an external account, any money lying in NRE account can remitted outside the country which means the money is repatriable. The money can transfer from NRE to NRO Account. It can be a saving or current account. With this account, NRI has to go through the PIS route to trade in Indian Stock Market.
The NRO Bank Account is Non Resident ordinary Account. With the NRO Account you have restricted repatriation of 1 million USD per annum. The money cannot be transferred from the NRO Account to NRE Account. An NRI with NRO saving account is no longer required to open PIS Bank Account for investment in Indian stock market.
|NRE Saving Account||NRO Saving Account|
|Account Type||NRE account can be a Saving Account or Current Account||NRO Account can be a Saving or Current Account|
|Average Monthly Balance in Account||Rs 10,000||Rs 10,000|
|Repatriation||Principal and Interest earn is fully repatriable||Restricted or partially repatriable (upto $ 1 million in a financial year)|
|Taxation||NRE Account is tax free||Interest earn and credit balance has tax liability|
|Earnings in India||Any type of earning in India cannot be deposited in NRE Account||Earnings in India can be deposited in NRO Account|
|Joint Account||NRE Account can only be jointly open with NRE only||Can be open jointly with NRI or close relative in India|
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Portfolio Investment Scheme PIS is the scheme of RBI through which an NRIs and PIOs can buy and sell shares and convertible debentures of Indian companies on a recognized stock exchange in India by routing all their transactions through a designated bank branch on repatriation benefit basis.
There are few branches of some Banks that are designated by RBI that an NRI can have accounts with to invest in Indian Share Market.
Non Resident Portfolio Investment Scheme Account is called NRI PIS Bank Account. Any NRI or PIO holder wish to invest in Indian Share Market via NRE account must have a PIS Account with one designated Bank in India. Now with the new RBI circular, you only need PIS letter if you want to map NRE account with trading account. However, for NRO account you are not required to get PIS letter and you can map your NRO Account to Trading account with any Broker.
NRI-NRE Account holder can trade in Equity Delivery and Equity F&O Delivery.
An Intraday Trading is not allowed fro NRIs.
Stock holding of an NRI can't exceed 10% in any Indian listed company subject to overall limit for listed equity shares of each company on repatriation benefit basis. Here is the list and limit on stock holding by NRI.
NRI investment in equity shares of listed company without repatriation benefit is treated at par with resident Indian and there is no upper limit. Please refer the recent amendment in FEMA on RBI website at following link1 and link2
If you intent to trade in Equity Derivatives Segment, you have to come through the custodial route. You will need to open NRO Custody Account. Brokers like Zerodha and ProStocks offer NRO Custody account from ISSL, which is IL&FS Group Company. Your settlement obligation for trades in Equity Derivatives Segment will be done by ISSL from your custody account. ISSL charges custody account management charges and you need to do KYC with ISSL also. Your Broker will assist you in opening your custody account with ISSL. ISSL will permit custody account with assets not less than USD 5000.
To open a Custody Account you need to complete certain documents:
You can request your Bank to close your PIS Account and move to non-PIS way. In such case you need to contact your bank and send broker a revocation letter and closure of PIS acknowledgement copy.
The NRO Trading Account is subject to applicable withholding tax. This withholding tax is known as Tax Deducted at Source. Your broker need to deduct withholding tax and deposit to Tax Department, for that brokers need to take external service of Chartered Accountant.
Banks have authority to redesignate such accounts as resident accounts on return of the account holder to India. When you convert your account in resident account, you will get interest till last date.
As per the latest RBI circular, if you have a NRO (non-repatriable) bank account, you can map that to the trading account and it will be like a normal resident account.
Your Broker will calculate the tax with the help of a CA and deduction will be done by the Bank where you are holding the NRI Account.
Unlike resident accounts, there is a huge manual process supporting NRI clients. There is incremental efforts involved in all NRI trades including updating balances, reporting contract notes, reconciling receipt/transfer of funds etc and hence the higher charge.
This can’t be done before opening your NRE Bank account, as you want to move fund back to Canada. So in your case –
Step1: To open an NRE bank account with any of the Indian banks in Canada.
Step2: Open and NRE Trading and Demat account. You can follow a list of documents and forms on our NRI Articles.
Step3: Submit dematerialization request for your physical shares.
Step4: Once you have Shares in your demat account, you can exit and get your money in NRE bank account.
Step5: You need to take care of taxation in India and Canada for such income.