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What types of accounts are permitted to be maintained by NRI for Trading?

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An NRI is required to maintain an NRI Trading Account,NRI Demat Account, and an NRI Bank Account to trade and invest in Indian stock markets. In addition to this, an NRI needs a PIS approval from RBI to trade on a repatriation basis. With recent changes in RBI rules, the PIS approval to trade on a non-repatriation basis has been waived off.

The NRI accounts are further classified as Non-Resident External (NRE) account or Non-Resident Ordinary (NRO) accounts based on the repatriability. An NRI is required to open an NRE to trade with repatriation benefits and NRO account to trade without repatriation benefits.

In addition to the above, an NRI is required to open an account with the custodian to trade in derivatives. However, if the broker is providing the clearing services to the NRI clients, an NRI is not required to open a separate custodian account. The broker/custodian can apply for the custodial participant (CP Code) required for F&O trading.

Summary of accounts required for NRI Trading:

Investment Type

Accounts (repatriation basis)

Accounts (non-repatriation basis)

Equity

NRE PIS Bank account

NRE PIS Trading Account

NRE PIS Demat Account

NRO PIS/Non-PIS Bank account

NRO PIS/Non-PIS Trading Account

NRO PIS/Non-PIS Demat Account

Derivatives

N.A.

*Not permitted to trade on repatriation basis

NRO Non-PIS Bank account

NRO Non-PIS Trading Account

NRO Non-PIS Demat Account

CP Code

Mutual Funds

NRE Bank account

NRE Trading Account

NRE Demat Account

NRO Bank account

NRO Trading Account

NRO Demat Account


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