Can an NRI trade in F&O in India?

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Yes, NRIs can trade in derivatives in India. This includes Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) cardholders.

However, there are some prerequisites and restrictions for NRI trading in futures and options (F&O):

It requires an NRO saving bank account
It requires a Custodial account.
The profits are taxed at 30% by the income tax department.
The profits earned cannot be repatriated.
The custodial account provider may ask for a minimum of 25 lakhs in the account.
Brokers charge higher brokerage because of complexity and tough compliance.

Topic: NRI Trading in Derivatives (Futures and Options Trading) in India Article

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