Save over 60% on Brokerage
We can help you save between 60% to 90% brokerage fee & taxes. Contact us today...
CP code is a unique code allocated to an NRI or FPI investor by the Custodian. This code is used by the broker and custodian to settle the NRI F&O trades.
NRIs are permitted to trade in equity derivatives segment in India stock markets. For NRIs to trade in F&O, they have to open an account with Custodial and get a CP Code from them. An NRI trader has to clear all the equity derivative trades through a clearing member using the CP code.
CP code is used by the stock broker to execute the derivatives trades on behalf of an NRI customer. When a CP code is used, the trade obligations including payment of margin and settlement go to the Clearing Member/Custodial and not to the NRI customer.
Custodians are SEBI registered member of clearing corporation. They help the customer in getting the CP code and later clear the F&O trades at the exchange on the behalf of the customer.
All the funds for trading in F&O remain with the custodian. This is similar to how the funds for NRI delivery trading remain with the bank and given to the broker once they share the contact note with bank/custodian at the end of the trading day.
When you open a custodial account, the company offering custodial services usually demands at least Rs 25 lakhs custody portfolio size. This includes cash, stocks or any other security that you deposit with the custodian.
Here are the key points to note about NRI F&O trading:
To get a CP code, contact a Clearing Member or Custodian who is a member of India International Clearing Corporation Limited (India ICC).
Each broker has a preferred Custodian. Once you choose the broker, contact the broker and ask them for which Custodian you should choose.
The large banks who offer 3-in-1 NRI accounts have in-house Custodian services. This makes it easy for NRI customers as they only have to deal with one company for all the services. Banks including ICICI, HDFC, SBI, etc have their own Custodian services.
Yes. To move the CP Code to a new custodial, simply open an account with the new custodial and submit an additional form to move all open positions to the new account.
Add a public comment...
List of all terms Ask your question
Best of
Top Stock Brokers in India Top 10 Discount Brokers Top 10 Full-Service Brokers Lifetime Free Demat Account Best Broker for Beginners More Reports...Reviews (Discount Broker)
Zerodha (₹20/trade) Edelweiss (₹10/trade) Upstox (₹20/trade) 5paisa (₹20/trade) ProStocks (₹899 Unlimited) More Brokers...Reviews (Full-service)
ICICI Direct Motilal Oswal HDFC Sec Sharekhan IIFL Securities More Brokers...Compare Brokers
Broker Articles / Tutorials Compare Share Brokers Side-by-Side Comparison Broker Complaints Monitor Broker Glossary Special OffersTrading Platform Reviews
Zerodha Kite Review Sharekhan TradeTiger Omnesys NEST Review ODIN Review NSE NOW Review More Reviews...Options Basics
Options Trading HomepageBroker Reviews
Zerodha Review 5paisa Review ProStocks Review Sharekhan Review Angel Broking Review ICICI DirectOptions Trading Platform
Kite Zerodha Trade Tiger Sharekhan Omnisys NEST Upstox RKSV Fyers One Fyers ScalperT FinvasiaBest of
NRI HomepageNRI Trading Guide
Trading Account Basics Trading Requirements Demat Account Explained USA NRI Trading Account Trading in Derivatives More Articles...History of Chittorgarh
History of Chittorgarh Maharana Pratap Meera Bai Panna Dhai Rani Padmini Jainism & Chittor (Hindi)Chittorgarh City Info
Chittorgarh City Map Hotels / Resorts Sainik School Chittorgarh Cement Industry Hindustan Zinc