How to invest in the India equity market as NRI using the money in the resident Indian bank account?

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As a first step towards investing in the India equity market, an NRI has to convert his Indian savings bank account into the NRO Bank Account. An NRO account is for NRIs to manage the income earned in India i.e. rent, dividend, pension, sale of property purchased before becoming an NRI, etc. Any person resident outside India can open an NRO account. Income earned in foreign as well as in India can be deposited in this account.


  1. NRO Non-PIS Account
    • Convert the existing resident bank account to NRO bank account or open a new NRO bank account, NRO Demat Account, and NRO Trading Account.
    • Deposit your money from resident Indian account to NRO bank Account in case a new account is opened.
    • Start investing money in India Stock Market
  2. Use Family Members Account
    • Open a resident Indian account in the name of one of your family members who live in India.
    • Gift/lend the money to him.
    • Invest using this account if your family member is ok with this
    • Note that they have to pay income tax in India on the net profits in this account.
  3. Invest in Mutual Funds and IPO

    You could use your Non-PIS NRO Account to invest in Mutual Funds/IPO in India. Please note that AMCs are allowed to accept investments only in Indian currency. For investing in IPO, an NRI should check the Red Herring prospectus of issuer company that provides the detail of NRI eligibility to invest in IPO.


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