How NRI can buy shares in India?

An NRI is required to open an NRE PIS or NRO PIS/Non-PIS bank Account, trading account and Demat account to buy shares in India on repatriation or non-repatriation basis respectively.

The PIS approval is mandatory to trade on a repatriation basis. Thus, once an NRE PIS bank account is opened, an NRI is required to link this bank account with the NRE trading and Demat account. Once all these accounts are opened, set up and linked, an NRI can place a buy order with the broker on the arrangement of required funds in NRE PIS account.

An NRI is required to follow the exact same process to trade on non-repatriation basis except for the PIS approval which is optional if the broker is providing the service to trade without PIS and an NRI can place the order to buy shares through NRO trading account using funds from his NRO savings account to be held in NRO Demat account.

An NRI needs to take the delivery of the stock before placing a sell order as NRIs are not allowed to do short selling.