Can NRI buy shares in India?

An NRI can buy shares in India from the stock exchange on repatriation as well as a non-repatriation basis. To buy the shares on a repatriation basis, an NRI requires PIS approval from RBI. The PIS approval is not mandatory in case of purchases without repatriation benefits.

An NRI requires an NRE PIS or NRO PIS/Non-PIS bank account to be linked with NRE/NRO Demat account and NRE/NRO trading account to buy the shares on repatriation or non-repatriation benefits.

It is important to note that an NRI has to take the delivery of the security bought before placing a sell order as NRI is permitted to do only delivery-based trading in India.