NRI Trading Account Charges, Questions, Guide - India Stock Market

Published on Sunday, March 15, 2015 by Chittorgarh.com Team | Modified on Saturday, May 23, 2020

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NRI Trading Account Charges, Questions, Guide - India Stock Market

NRI (Non-Resident Indian) are Indian citizens who are temporarily immigrated to another country for six months or more. NRI's are allowed to invest in India Stock Market, Mutual Funds, Bonds, and other instruments through a different set of rules designed by RBI and SEBI. This article provides information about how NRI's can invest in India.

Can NRI invest or trade-in India Stock Market?

Yes, the NRI's can invest in equity shares, ETF, debt funds, mutual funds and IPO's in India. NRIs can also trade in Equity Derivatives (F&O) at the exchanges like BSE, NSE and MCX.

NRI's are permitted by RBI to invest and trade in the India Stock Market through the PIS route and Non PIS route on non-repatriation basis. NRI's are also now permitted to trade in Currency Derivatives as RBI circular issued in Feb 2017.

 

In this article we will try to address common questions asked by the NRI's regarding investment and trading in the India Share Market. We will also explain the process of opening the trading and Demat account for NRIs. This could be your best NRI trading beginners guide.

Note: RBI has provided guidelines for trading and investments by NRI customers in India. Each broker in India interprets the RBI guideline in a different way. This confuses terms of offerings. It is important to ask as many questions as you could before opening an account with a broker.

Let's begin with a clarification about who is qualified as NRI.


Who is NRI?

NRI (Non-Resident Indian) is Indian citizen holding an Indian passport and has temporarily immigrated to another country for six months or more for employment, residence, education or any other purpose. NRI's can maintain bank accounts in India, Invest in shares, and deposits with Indian companies and invest in immovable properties in India. A person of Indian origin (PIO), who were born in India or other countries but have Indian ancestry but is not a citizen of India and is the citizen of another country.

A trust and a partnership firm incorporated outside India and owned and controlled by non-resident Indians, may also acquire and hold, on non-repatriation basis, equity shares in an Indian company.


What is Portfolio Investment Scheme (PIS) route?

In June 2013, SEBI instructed, the PIS route, a foreign investment route to simplify the registration and investment procedure by bringing all categories of foreign investors under a single channel called PIS.

Foreign investors investing under the PIS route are classified into three categories; category I, II and III investors and the Know Your Customer (KYC) procedures varies by them.


Steps for opening NRI Share Trading Account (Open Demat Account NRI)

To trade in stock market in India, NRI investor has to open 3 different accounts and link them together.

The NRI Equity Trading account include:

  1. A NRE Bank Account, also known as NRI Account is to keep the money for trading. This account is opened with a bank.
  2. A Demat Account to hold shares. This account is opened with Depository Participant (DP).
  3. A NRI Trading Account, an account with the share broker which enables the NRI investor to execute the trade in the stock exchanges.
  4. A Custody Account, if NRI is planning to trade in Equity Derivatives (F&O) segment. This account is to manage the settlements of all security transactions undertaken by the clients. This has to open with Custodial Participant i.e. IL&FS.

There are 3 types of financial institutions in India whom with you can open these accounts:

  • Firms offering 3-in 1 Account

    Some of the banks in India (ICICI, HDFC, Kotak etc.) offers 3-in-1 account. This means all 3 accounts can be opened with the same financial institution. These accounts are extremely popular because of the seamless transactions among the accounts. The ease of use comes at the cost of higher AMC and brokerage charges. Note: ICICI Bank is no more allow opening online 3-in-1 NRI account from forign land. If you are an NRI and present in India, you could open the NRI 3-in-1 account with them.

  • Firms offering 2-in-1 Account

    Some brokers in India offers 2-in-1 account which include a trading account and a Dmat account. These brokers also have an exclusive partnership with a specific bank for seamless-integration. (i.e. Sharekhan offers 2-in-1 account and have partnership with HDFC for NRI Bank Account). These brokers are cheaper than the brokers who offer 3-in-1 account.

  • Firms offering only Brokerage Services (Discount Brokers)

    These brokers are specialised in trading only and provide only trading account. They offer excellent trading platforms, extremely cheap brokerage fees and free software for trading. They have exclusive partnership with the DP service provider (for demat account) and the banks (for NRI bank account).

    ProStocks, a Mumbai India based discount broker offers 2-in-1 NRI trading account. They offer excellent trading platform and cheapest brokerage charges for NRI (Rs 100 per trade).

    Zerodha is another popular broker in this category.

Note:

  • To invest in stocks on a repatriation basis, you also need PIS permission on your NRE Bank Account.
  • To invest in F&O on repatriation basis, you also need PIS permission and CP Code from clearing agency
  • To invest in stocks or trading in F&O on a non-repatriation basis, you don't need PIS permission or CP Code. You just need an NRO Bank Account linked to your trading and demat account

Here are the step by step guide to open these accounts:

Step 1: Open NRI Bank Account

Contact any bank in India (or its foreign branch) which offers the NRI Bank Account under the PIS (Portfolio Investment Scheme) for investing on a repatriation basis or NRO Non-PIS Account for investing on non-repatriation basis.

For investing on a repatriation basis, NRI needs approval by the RBI to open this account through the PIS route. Banks with whom which you are opening the account usually takes care of it. Once you get the necessary approvals through the bank, you will be given the PIS (Portfolio Investment Scheme) Letter. This PIS letter is required to open the trading and demat account.

Note:

ICICI Bank, Axis Bank, HDFC Bank, Kotak Bank etc are the popular banks offering NRI Bank Account.

Step 2: Open Demat Account and Trading Account

Choose the right broker and contact them to open the trading account and Demat account.

If the stock broker doesn't offer the Demat Account Services (DP Services), they direct you to the preferred DP service provider (i.e. IL&FS). You can open the Demat account with the DP service provider and link it to the trading account.

That's it. Once you have the NRI Bank Account, the Demat Account and the Trading Account opened and linked together, you are all set for trading.

Note: If you are interested in trading in F&O segment, please read the next section for additional requirement.


NRI Trading in Derivatives Segment (F&O Trading)

NRIs are allowed to trade in the Futures and Options segment (F&O).

For investment on a non-repatriation basis, you just need an NRO bank account and broker who also offers in-house trade clearing-services.

For investment on a repatriation basis, the trade has to happen through the Custodial Participant (CP Code) facility offered by the exchange. Along with opening a trading account with a broker, you will need to get a CP code for yourself (through a custodian).

How do I trade in F&O's in the India Stock Market as NRI?

To trade in equity derivatives on repatriation basis:

  1. Contact a Clearing Member (CM) (i.e. IL&FS) and submit the application for custodial participant (CP) code.
  2. The Clearing Member request the National Securities Clearing Corporation Ltd. (NSCCL) to allot a CP code in respect of client for which the member would be carrying out clearing and settlement.
  3. Clearing Member share the custodial participant (CP) code with you.
  4. Open the NRI trading account with your choice of broker and provide them the CP code.
  5. The broker will use the CP code for all your trade settlements.

I was trading in F&O segment with my broker in India but now I moved to Dubai. Can I continue using the same trading account?

Yes you can continue using the same account. If your residential status has changed to NRI with your bank account, then you will need to open a NRI trading account too.


NRI Demat & Trading Account Fees

NRI Trading Account Charges

Broker Account Opening Charges
ICICI NRI Account Opening Fee ₹4000
ICICI NRI Bank Account AMC ₹1000 per year
Kotak Security Account Opening Fee ₹3750
Kotak NRI Bank Account AMC ₹1000 per year
Kotak NRI Demat Account AMC ₹75 + tax per month

NRI Trading Brokerage Charges

Broker Segment Brokerage Charges
ICICI Equity Delivery 1.25% to 0.50%
Equity Future 0.05% to 0.03%
Equity Options ₹95 to ₹75
Kotak Securities Equity Delivery 1%
Zerodha Equity Delivery Flat ₹200 per trade
Equity Derivatives (F&O) Flat ₹200 per trade

ProStocks NRI Trading Account

ProStocks Logo

ProStocks, a popular discount stock broker based out of Mumbai offers 2-in-1 NRI Trading account.

ProStocks NRI Brokerage Charges: ₹100 Per Trade (All Segments)

ProStocks NRI Account Charges:

  • ProStocks NRI 2-in-1 Account Opening Charges: ₹0
  • ProStocks NRI 2-in-1 Account Annual Maintenance Charges (AMC): ₹0
  • ProStocks NRI Demat Account AMC: ₹0

ICICI NRI Trading Account

ICICI Securities Logo

ICICI offers a 3-in-1 account for NRI's to invest in India. This include the seamlessly integrated Bank Account, Demat Account and Share Broking Account. This online account allows you to invest in Stocks, Mutual Funds, IPOs, Bonds, EFTs and trade in equity derivatives (futures and options) in India Stock Market.

ICICI NRI Account Charges:

  • ICICI NRI 3-in-1 Account Opening Charges: ₹4000
  • ICICI NRI 3-in-1 Account Annual Maintenance Charges: ₹1000 per year

ICICI NRI Trading Equity Delivery Brokerage

Total Turnover (per month) Equity Delivery
Above ₹50 lakhs 0.50%
₹25 lakhs to ₹50 lakhs 0.75%
₹10 lakhs to ₹25 lakhs 0.90%
₹5 lakhs to ₹10 lakhs 1.00%
Up to ₹5 lakhs 1.25%

ICICI NRI Trading Equity Futures Brokerage

Total Turnover (per month) ICICI NRI Brokerage Charged
Above ₹20 Crores 0.03%
₹10 Crores to ₹20 Crores 0.035%
₹5 Crores to ₹10 Crores 0.04%
Up to ₹5 Crores 0.05%

ICICI NRI Trading Equity Options Brokerage

Total Turnover (per month) Per Lot Brokerage
Above ₹20 Lakhs ₹70
₹10 Lakhs to ₹20 Lakhs ₹75
₹5 Lakhs to ₹10 Lakhs ₹85
Up to ₹5 Lakhs ₹85

How to open the ICICI NRI trading Account?

  1. Fill the application form online at ICICI website.
  2. Print the forms.
  3. Sign the printed forms.
  4. Attach photo's and documents.
  5. Send it to ICICI bank at given address.

Sharekhan NRI Trading Account

Sharekhan Logo

Sharekhan, India's leading stock broker offers NRI Investment Service though partnership with HDFC Bank for NRI Bank Account.


Kotak Securities NRI Account

Kotak Securities Ltd Logo

Kotak securities offers NRI 3-in-1 Account (known as Trinity Account), a combination of Bank, Demat and Trading Account to provide you a seamless platform to trade and invest in India Stock Market.

Kotak Securities NRI Brokerage Charges

Purpose Charges
Account Opening Charges ₹3750
Bank Account maintenance fee ₹1000 per year
Demat Account maintenance fee ₹75 per month
Brokerage Charges 1% of the turnover or 10 Paise per share, whichever is higher

For more information, visit:

 

ProStocks Non-PIS NRO Trading

 

Frequently Asked Questions

  1. 1. Which segments are available for trading to the NRIs in India?

    NRIs are allowed to trade only in following trading segments in the India Stock Market:

    1. Equity Delivery
    2. Equity Derivatives (F&O)
    3. Currency Derivatives (F&O)

    Note: NRIs are NOT permitted to do intradaytrading (day trading) in equity or derivatives.

    Note:

    • To invest in stocks on a repatriation basis, you need NRE Bank Account with PIS permission.
    • To invest in F&O on a repatriation basis, you need PIS permission and CP Code from clearing agency.
    • To invest in stocks or trading in F&O on a non-repatriation basis, you just need an NRO Bank Account linked to your trading and demat account. You don't need PIS permission or CP Code.

     

  2. 2. What all investment instruments are available for NRI or PIO Card Holders in India?

    1. Equity shares or convertible debenture of Indian Companies
    2. Exchange Traded Funds (ETFs)
    3. Government Securities
    4. Government Treasury Bills
    5. Mutual Funds
    6. Bonds issued by a public sector undertaking (PSU) in India

     

  3. 3. Can NRI apply in IPO, FPO or other public issues?

    Yes, NRIs are permitted to invest in IPO, FPO and other public issues provided the issuer company allows NRI to subscribe to their issue. There is no restriction from RBI on the NRI IPO/FPO investment.

    However, generally, the issuer company is reluctant to allow NRIs to invest in IPO /FPO due to the additional compliance requirement on the part of the issuer company to inform RBI on NRI shares allocation. Hence, an NRI should check the Red Herring Prospectus (RHP) of the issuer company to check for NRI eligibility for investment.

     

  4. 4. Can NRI trade in currency derivatives?

    Yes, NRIs are permitted to trade in Exchange Traded Currency Derivatives as per RBI circular

     

  5. 5. Why intra-day trading is not available for NRI in India?

    Intra-day trading leads to speculation thereby creating volatility in the markets and increasing risk for the investors. Hence as per the RBI guidelines, NRIs are not allowed to do intraday trading in India. However, NRIs can do the Intraday Trading in the F&O segment restricting to square off their positions and not for speculative purposes.

     

  6. 6. How much brokerage does Zerodha charges to NRI account holders?

    Zerodha brokerage charges for the NRI trading account is flat ₹200 or 0.1% (whichever is lower) per executed order in the equity segment and ₹100 per trade in the F&O segment. Besides brokerage, an NRI customer has to pay taxes, clearing fees, exchange transaction charges, PIS charges, etc.

     

  7. 7. What are ICICI NRI account brokerage charges?

    ICICI charges a brokerage fee of 0.50% to 1.25% based on your monthly transactions for equity delivery trading. For Equity derivatives, ICICI charges 0.03% to 0.05% for equity futures and ₹70 to ₹95 per trade for equity options.

     

  8. 8. Why does a broker charge higher brokerage for NRI trading account?

    Stock brokers charge higher brokerage to NRI customers because of additional complexity with NRI trading due to RBI and FEMA regulations.

    While trading on a repatriation basis through PIS-NRE Account, every time a customer buys the shares, the broker sends the Contract Note to the bank and then the bank release the funds to the broker.

    The process is more complicated when NRI trading on repatriation basis in equity derivatives segments (F&O's). An NRI needs an additional account with Clearing Agents who does the settlement of the trades instead of the broker.

    Note:

    • NRI's trading with NRO Non-PIS Account is much simpler in terms of managing compliance. The broker does not have to involve banks and clearing agent for trading in equity or F&O.
    • Zerodha charges ₹20 per trade for resident Indian account and ₹200 per trade brokerage for the NRI trading account.
    • ICICI Directcharges 1.25% brokerage for NRI equity delivery trading for monthly transactions less than ₹5 lakhs. The charges are below 0.50% for resident Indian trading account.

     

  9. 9. Can shares bought via PIS be transferred to another NRI Demat account?

    Shares purchased under the PIS route shall be sold on the stock exchange only. Such shares cannot be transferred by way of sale under private arrangement or by way of gift to a person resident in India or outside India.

     

  10. 10. How does money transfer between NRI Trading and NRI Bank Account?

    Once investor opens NRI account, the PIS received is mapped with the trading account. When NRI investor does this, the bank shares the account balance with the broker. This available balance is updated on the trading platform.

    When NRI investor buy the shares, the Contract Note is shared with the Bank by the broker. Once bank receives the Contract Note, they transfer the money to the broker.

    When NRI investor sells the equity shares, the funds are automatically credited to the NRI Account.

     

  11. 11. Can PIO and OCI invest in the India Share Market?

    Yes, the PIO and OCI can invest in the same way as NRIs. The rules applicable to NRIs for investing in Indian stock markets get applied for PIO and OCI as well.

     

  12. 12. Does NRI required to change his resident Demat account to Non-resident?

    As per section 6(5) of FEMA, an NRI can continue to hold the securities which they had purchased as a resident Indian, even after they have become a non-resident Indian, on a non-repatriable basis. However, in case an NRI wishes to make any fresh investments, an NRI cannot use the resident Demat account and is required to convert the existing Demat account to the Non-Resident Demat account.

    An NRI can convert the existing Demat account to NRO Demat account for trading on a non-repatriation basis or open a new NRE Demat account for trading on a repatriation basis. Note the shares purchased as resident Indian can be transferred only to the NRO Demat account only and not NRE Demat Account.

     

  13. 13. Does NRI need new trading account on becoming resident Indian or vice versa?

    Yes, an investor needs to open a new trading account with the broker with the change in their residency status. An NRI cannot invest with a normal resident trading account and requires to open an NRI trading account and a resident Indian cannot invest with an NRI trading account and requires a resident trading account.

     

  14. 14. What documents are required to open an NRI trading account?

    Following are the document needed to open the NRI Trading Account. Please note that this list is just for reference. Your broker will provide you the actual list at the time of account opening.

    1. Document about your current Status:
      • In case of Indian passport:
        • Valid passport and
        • Place of birth as India and
        • Valid Visa - Work/Student/employment/resident permit etc.
      • In case of foreign passport: Valid passport and any of the following:
        • Place of Birth as India in foreign passport or
        • Copy of PIO / OCI Card
    2. The PIS Permission Letter from the respective designated bank for trading on repatriation basis.
    3. The PIS FEMA NRE/NRO bank accounts cancelled check leaf.
    4. PAN Card.
    5. Overseas Address Proof - Driving License/ Foreign passport /Utility Bills/Bank statement (not more than 2 months old)/Notarized copy of rent agreement/ leave & license agreement/ Sale deed.
    6. Photograph of Investor.
    7. Proof of respective bank accounts & depository accounts.
    8. Account opening fee check + Demat Account Opening Fee check.
    9. Duly signed account opening forms.

     

  15. 15. Is there an easy way to open and handle an NRI Trading account?

    Opening an NRI Investment Account is a complex process and the charges for opening and maintaining the account are high. If you are on a short term assignment and are not a frequent trader, you can use some workarounds to avoid this complexity. Here are few suggestions:

    1. If you already have a trading and demat account in India as resident Indian, continue using it. As long as you keep your bank account (which is linked to trading account) as-is and do not convert in NRI account, you should be fine.
    2. As an Indian resident in past, if you still have a normal bank account in India (not the NRI account), the easiest way to open a trading account is as a normal trading account (as you are living in India as resident Indian).
    3. Note that you will have to provide the required document which shows that you are an Indian resident (i.e. Address proof in India)
    4. Open the account on your family member's name who lives in India.

    These approaches are commonly used by people who are on short term assignment in foreign or frequently visit oversees i.e. software professionals, students etc. You can still use international address for correspondence. Trading and Demat account can be easily managed online.

    Though the above approaches exist as a workaround, it is always recommended to trade via NRI accounts on becoming an NRI. This is to avoid any issues in the future in case of any investigations since the investments done by an NRI are closely monitored by the Government of India.

     

  16. 16. I have trading account in india whom I don't like I moved to abroad and become NRI,I was thinking of converting my trading acc into NRI bcz of complexity of NRI trading ac, I decided to open a regular trading ac in India will there be any problem?

    As such there is no problem with this kind of arrangement (proxy account) as long as the IT Returns are filed (when income exceeds the exemption limits) in the name of the family member who owns the trading account.

    Even though you are using the account, technically you don't own the account.

    Note that moving money between your personal accounts and your family members account in large amount could also be problem.

     

  17. 17. I was using an ICICIDirect Trading and Demat account when I was resident Indian. My status is now changed to NRI and I wish to open it with discount broker. Can I transfer my existing holdings to the new broker?

    Yes, you can open the NRI trading account with the discount broker and move the shares from your existing demat account to new demat account through offline transaction.

     

  18. 18. What are the negatives of operating resident accounts instead of NRI?

    Technically, there are no problems in continuing to operate with residential trading/Demat/bank accounts if proper documents are submitted to prove that investments are done in the capacity of resident Indians.

     

  19. 19. Can NRI bank account be linked with resident trading and demat account?

    You can open an account in your mother's name but you cannot link your bank account to her trading account. As per law, the trading linked bank account should belong to the same person.

    You would have to first transfer funds to your mother's bank account and from there to her trading account for trade.

     

  20. 20. What is an NRO and NRE Bank Account?

    Following are two main types of bank accounts which can be maintained by NRI / PIO in India:

    1. Non-Resident Ordinary Rupee Account (NRO Account)

      Any person resident outside India (including NRI or foreign national or non-Indian origin visiting India) can open NRO bank account with an authorized bank in India for the transactions in Indian Rupees. NRO Account can be of types including current, savings, recurring or fixed deposit accounts.

      NRI/PIO can remit money (transfer money to their foreign account) from the NRO account as long as they paid taxes in India.

    2. Non-Resident (External) Rupee Account (NRE Account)

      Any Non Resident Indian can open NRE Account. NRE account is usually opened by NRIs with their resident close relatives in India. The resident close relative are eligible to operate the account as a Power of Attorney holder for the limited purpose of withdrawal of local payments or remittances through normal banking channels to the account holder himself. NRE Account can be of types including current, savings, recurring or fixed deposit accounts. NRE account is maintained in Indian Rupees.

    Both NRO and NRE accounts can be used to trade in the India Stock Market.

    NRE/NRO Account Difference

    NRE Vs NRO Bank Account

    NRE (Non Resident External) Account NRO (Non Resident Ordinary) Account
    Who can open this Account? Any NRI (Indian passport holder) can open NRE account. A Power of Attorney is usually given to a close relative in India to allow them to operate the account. Any person resident outside India (including NRI) can open NRO account.
    Repatriation of Fund Both the principal and interest amount is freely repatriable. Only the interest is repatriable.
    Exposure Account is exposed to the fluctuations in the value of the Indian Rupees for both the principal and interest. The account holder is exposed to the fluctuations in the value of the Indian Rupee only for the interest component.

    Click here to read the detailed comparison of NRE and NRO Bank Account.

     

  21. 21. What all documents are required for Custody Account?

    To open a Custody Account you need to complete certain documents.

    • A Custody Account Opening Form
    • A Custody Agreement
    • A Power of Attorney granted in favor of Custodian.
    • All other standard documents related to Proof of Address, Identity etc.
    • If the documents are executed outside India then the consularisation / notorisation is required on all the documents.

     

  22. 22. Does an NRI require PIS permission to purchase shares in IPOs?

    No, NRIs do not require any PIS permission to purchase shares in the primary market. The application money can be paid through a regular NRE / NRO bank account or inward remittance.

     

  23. 23. Can NRI receive shares in inheritance?

    Yes, NRI can receive the shares in inheritance without any RBI permission. The shares so obtained are to be held on a non-repatriable basis.

     

  24. 24. Why do we need NRI Bank Account? How do I open it?

    As per FEMA, a Non-Resident Indian (NRI) cannot operate and maintain a resident savings account. Hence as soon as an individual becomes an NRI, the existing resident bank account should be either closed or converted to NRO Bank Account. Moreover, when a resident Indian person moves abroad and becomes an NRI, the easiest and efficient way to access and use the money and investments already made in India, is to convert the savings bank account with the Indian bank into an NRO bank account.

    The NRO accounts can receive foreign remittances (money transfers from aboard to India), can have a joint holder who is a resident Indian, and RBI also permits repatriations abroad limited by a maximum annual amount.

    An NRI Bank account can be either opened online or offline by approaching your bank requesting them for conversion for an existing resident bank account or to open a new NRI Bank account. To open any non-resident account in an Indian bank, it is important to provide proof that the account holder is now a non-resident as defined in the Indian tax laws.

    The conversion of a resident account into a non-resident account requires submitting identity proof, NRI status proof, proof of foreign address, and two photographs. The applicant has to provide proof of residence abroad in the form of employment details, student status, dependent visa status, or a copy of the resident permit in the overseas destination. This proof has to be attested by the Indian embassy, notary, or an Indian bank with an overseas branch. If the applicant wants to mention a local Indian address for ease of operation, in addition to an overseas address, proof of such an address should also be provided with attestations.

     

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12 Comments

Syed
12. Syed  Feb 6, 2020 15:06 I Like It. | I Don't Like It. | Report Abuse Reply
I have NRE/ NRO savings account with ICICI. I have opened local RKSV demat and trading account.

This local RKSV is linked with NRO account. Will there will be any consequences from RBI if it is not linked with NRI demat account
Rajesh
11. Rajesh  Jan 4, 2016 17:17 I Like It. | I Don't Like It. | Report Abuse Reply
I am NRI since 2014, I am already having a NRI demat account. Can I open a local account and demat account for trading without closing NRI demat account. what will be the consequences if we hide the NRI status ?
Administrator
11.1. Administrator  Dec 6, 2018 14:06 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Hi Rajesh,
By doing this you are creating problem for yourself with tax authorities of 2 countries as you are breaking the law of both the countries.

Alternatively you could use an account of one of your family members living in India. The challenge there is, you can't take the money back to the country where you are living.

New N
10. New N  Mar 19, 2015 10:44 I Like It. | I Don't Like It. | Report Abuse Reply
This is a great article and I had been waiting for this advice for long time, so first of all, thank you for posting!

When i performed my research last year on this topic, all banks refused to open this service for NRIs based in USA and Canada. So, is your article applicable to all NRIs except those residing in USA and Canada? Please confirm.
Team Chittorgarh.com
10.1. Team Chittorgarh.com  Dec 6, 2018 14:00 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Hi New N,

Banks doesn't allow you to open trading account from foreign land but you could open the account in your next visit to India.

Else, you would open account with other brokers like Sharekhan, Zerodha, Tradeplus or ProStocks. They are equally good and extreamly good in terms of brokerage cost.

Team Chittorgarh.com
NRI beginner
9. NRI beginner  Jun 8, 2015 13:39 I Like It. | I Don't Like It. | Report Abuse Reply
NRI''s based in USA and Canada are still not eligible to invest in Indian stock markets
Deepak Tiwari
9.3. Deepak Tiwari  Dec 5, 2018 18:18 I Like It. | I Don't Like It. | Report Abuse
Checkout Prostocks.com Go through FAQ's at the bottom of the page.

https://www.prostocks.com/trading/nri-trading.html

I an NRI and using there account.

Administrator
9.4. Administrator  Dec 6, 2018 13:55 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Dear Sir,

NRI's from across the world are eligible to invest/trade in India Stock Market (except intraday trading in equity). NRI's from US, UK, Canada or the Middle East can open NRI trading account.

Problem:
Banks like ICICI doesn't allow NRI's to open a 3-in-1 account from outside India. This is because of their interpretation of an RBI law.

Solution:
1. You still can open a trading account with other brokers like ProStocks, TradePlus, Zerodha, and Sharekhan. You just need NRE or NRO account with a bank.
2. If you are keen to open an ICICI Bank 3-in-1 NRI Trading Account, you could do that in your next visit to India. ICICI allows opening the NRI trading account if you are in India and sign the forms in India. Once opened, you could trade online from anywhere.

Note that even though you have an NRI Trading Account with ICICI, you cannot invest in Mutual Funds or IPO 'online'. They allow you to do this when you are in India.

Other brokers are flexible and offer online MF's.

Hope this clarifies the doubt.

Team Chittorgarh.com
Vinit
8. Vinit  Mar 1, 2016 16:35 I Like It. | I Don't Like It. | Report Abuse Reply
I am NRI since 2015, living in Middle East and my company has vested ESOPs to me in India.
I want to claim ESOPs while living in Middle East to avoid perquisite tax. I currently have ICICI trading and demat a/c on residential status.
After coming to Middle East, I also opened NRE a/c with Union bank of India. As per RBI, it is mandatory to have NRE a/c and demat with NRI status to avoid perquisite tax on claiming of ESOPs. With this background, I have 2 queries:
1)      Can I claim ESOPs with funds from NRE a/c and ESOPs transfer to existing demat a/c on residential status and still avoid perquisite tax. If yes, what are the possible future implications? e.g. while selling etc. Just to note that, my company says that while transferring ESOPs, they only check source of funds and not the status of demat a/c.
2)      If demat and trading a/c on ‘NRI’ status is required to be opened, with whom should I go for? What is the fastest way to complete things? Please note that, I have time till March- 2016 only.
Skand Bhargava
7. Skand Bhargava  Feb 7, 2016 20:30 I Like It. | I Don't Like It. | Report Abuse Reply
Very good article. Covers many points.

I have NRE savings, trading and demat account with ICICI (and ICICI Direct). I am not sure whether it is 3-in-1 or not, but they are linked and I presume their services must be under 3-in-1.

I have recently come to know about RKSV who charge flat Rs. 200/- per transaction. This is much cheaper than 1.25% that ICICI charges. How can I RKSV for brokerage and continue to ICICI for my normal bank operations?

Another doubt: if I place an order for 1000 shares but the RKSV is able to complete the transaction is 7 lots, will the charge 200/- or 1400/-

Also, how much time does it take for someone to transferring the activity of selling/buying shares from ICICI to RKSV?
Team Chittorgarh.com
7.1. Team Chittorgarh.com  Feb 8, 2016 06:36 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Hi Skand,

1. Yes you can open a trading account with RKSV and link it with ICICI Bank Account.
You can also continue using ICICIDirect Demat Account but the transactions between RKSV trading account and ICICIDirect Demat account are not seamless. They have to be manual. That''s the reason its recommended to have Trading and Demat Account with RKSV.

2. If you place order of 1000 share in one single order, the brokerage charge is Rs 200 irrespective to how many transaction it took to complete the order at exchange.

Note that another broker ProStocks offer flat Rs 100 per trade.

Hope this will help.
Ananda
6. Ananda  Jun 22, 2016 18:24 I Like It. | I Don't Like It. | Report Abuse Reply
Can NRI in UK apply for IPO?
Forum Modulator
6.1. Forum Modulator  Jul 11, 2016 08:57 I Like It. | I Don't Like It. | Report Abuse
Hi Anand,
Yes, NRI''s from UK can apply for IPO''s in India. Please find more information about this at below article:

https://www.chittorgarh.com/article/nri_ipo_investment_in_india/171/
Anoop
5. Anoop  Oct 29, 2016 23:40 I Like It. | I Don't Like It. | Report Abuse Reply
I heard that PIS is not required for NRIs if they trade using their NRO account. Is it true? If yes, what will be the new trading charges for RKSV account holders?
kailas
4. kailas  Jan 5, 2017 10:45 I Like It. | I Don't Like It. | Report Abuse Reply
I am NRI having 3-in-1 NRE Demat Trading account with HDFC Securities. Brokerage is 0.55 percent (taxes extra).
1. Can I open zerodha trading account & link with existing 3-in-1 account?
2. At the end of each financial year, HDFC provides me a copy of Capital Gains Statement for the financial year. Will it be affected if I open zerodha trading account?
Mukesh kothari
4.1. Mukesh kothari  Feb 17, 2017 07:00 I Like It. | I Don't Like It. | Report Abuse
Top Contributor Top Contributor (200+ Posts, 300+ Likes)
Hi Mr Kailas,

Yes you can open a trading account with any broker offering NRI trading service and link it to HDFC NRI Bank Account.

The cheapest and best broker offering NRI trading services in India is ProStocks. You could checkout ProStocks NRI Brokerage Calculator at:

http://www.prostocks.com/nri-brokerage-calculator.html

http://www.prostocks.com/trading/nri-trading.html

Zerodha charge brokerage of Rs 200 and they also need Rs 25,000 deposit. With ProStocks, there is no deposit required and brokerage is just Rs 100.
Shailesh
3. Shailesh  Mar 4, 2017 14:49 I Like It. | I Don't Like It. | Report Abuse Reply
I am father of NRI USA based son, I have a demat account in my sons name without nri status, can i use that demat account for applying IPOs, Using ASBA facility of my SAVINGS ACCOUNT and my funds? Is it legal??
gaurag
2. gaurag  May 18, 2017 16:23 I Like It. | I Don't Like It. | Report Abuse Reply
if a NRI staying in USA having some 5 -6 company''s physical shares with him since 25 yrs.. he wants to get it Demat and sell it off in India. he is having NRE Saving account with 1 bank in India.

so does he need to open a PIS account also for selling the shares in india what he holds or just a normal trading & demat account will do the work for him.

pls revert me on mail or here or on call. who ever can help in solving the query
manoj subramonian
1. manoj subramonian  Oct 11, 2017 04:22 I Like It. | I Don't Like It. | Report Abuse Reply
hello, i have been trading with geojit from abudhabi and they were charging 0.75% per sell/buy which was ok with me. But recently i noticed that they started charging 2.45% for buy and 1.96% for sell since october 2016. Does some rules change?What can i do to revert back to the old rates? How can i move to a better broker ?








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