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Can NRI trade in Future and Options?

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An NRI is permitted to trade and invest in the Futures and Options (F&O) segment in India, also popularly known as derivatives or Exchange Traded derivatives only on a non-repatriation basis.

An NRI does not require PIS approval to trade in the F&O segment and can trade using the NRO Non-PIS account.

NRI Requirements for trading in F&O:

  • NRO Bank account
  • NRO Demat Account
  • NRO Trading Account
  • An account with a custodian to settle and clear the F&O trades.
  • CP Code (Unique custodial participant code allotted to NRI clients for F&O trading)

Note: An NRI is generally required to keep minimum Rs. 25 lakhs as a deposit with the custodian. Thus, if a broker is offering F&O clearing services to NRI, then an NRI can save on this cost of keeping a deposit with the custodian. Currently, Prostock is one broker who clears and settles the trade for NRI.


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