NRI Trading Glossary - Definitions, Abbreviations, Terminology and Meaning

Non-resident Indians or NRIs are people of Indian Origin living outside India for more than a specific period of time in a financial year. The term NRI was designed to know the tax status of a person by the Income Tax department. But today, the NRI term is used widely for people living outside India for work or migrated to other counties.

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0 Feedbacks 1. Custodial Participant code (CP code)
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.
0 Feedbacks 2. FATCA
FATCA or Foreign Account Tax Compliance Act is an ACT enacted by the US government to prevent tax evasion by its citizens who are investing in other countries.
0 Feedbacks 3. FCNR Account
Foreign Currency Non-Resident or FCNR account is a fixed term account opened by NRIs or PIOs with the purpose to transfer their money in foreign currency to India.
0 Feedbacks 4. Non-Resident Indian (NRI)
Non-Resident Indian (NRI) in India is a tax status for a person, who is a citizen of India or of Indian origin, residing abroad.
0 Feedbacks 5. NRE Account
A Non-Resident External Saving Bank Account (NRE Account) is for NRIs who would like to invest their foreign earnings in India on a repatriation basis.
0 Feedbacks 6. NRE Non-PIS Bank Account
An NRE Non-PIS account is an ordinary NRE saving bank account (without PIS permissions). It is an external saving bank account opened for NRIs.
0 Feedbacks 7. NRE PIS Bank Account
The NRE PIS Bank Account is the NRE Saving Bank Account with the PIS permission from RBI to invest in India Stock Market. It facilitates NRIs to trade in stocks using the income earned abroad.
0 Feedbacks 8. NRI 3-in-1 Account
A 3-in-1 Account for NRI is an online investment account for Non-Resident Indians. This is a combination of a bank, demat and trading account clubbed together.
0 Feedbacks 9. NRI Account
An NRI account is a bank account opened by an NRI in India. It is used to invest money earned in foreign countries, the money earned, or still earning in India.
0 Feedbacks 10. NRI Demat Account
NRI demat account is a demat account opened by an NRI, PIO & OCI cardholder. It holds securities (Stocks, Mutual Funds, Bonds, etc.) in electronic format.
0 Feedbacks 11. NRI ESOP (Employee Stock Option Plan)
ESOP is a way to reward employees by offering company shares at a discounted rate. NRI ESOP Shares come under the Non-PIS transaction and are taxable in India.
0 Feedbacks 12. NRI Non-Repatriable Demat Account
A demat account in India with sub-status as NRO Repatriable. This demat account is liked with an NRO Bank Account which is not fully repatriable.
0 Feedbacks 13. NRI Non-repatriation
NRI Non-repatriation refers to the restriction on the movement of Indian Rupee funds from NRO Saving Bank Account to a bank account outside India.
0 Feedbacks 14. NRI Repatriable Demat Account
A demat account in India with sub-status as NRI Repatriable. This demat account is liked with an NRE Bank Account which is fully repatriable.
1 Feedbacks 15. NRI Repatriation
NRI repatriation allows NRIs to freely move their foreign earnings invested in India to their country of residence. NRE Bank account is designed for this.
0 Feedbacks 16. NRI Trading Account
An NRI Trading Account allows Non-Resident Indians to invest/trade online in Stocks, Stock Derivatives, IPOs, Mutual Funds, and Bonds at Indian stock exchanges i.e. BSE and NSE.
0 Feedbacks 17. NRO Account
A Non-Resident Ordinary Saving Bank Account (NRO Account) is for NRIs to manage/invest their Indian earnings on non-repatriation basis. The funds in an NRO account are repatriable with certain rules and limits by the RBI.
0 Feedbacks 18. NRO Non-PIS Bank Account
An NRO saving bank account, without PIS permission, is known as NRO Non-PIS Account. This account is used to manage money earned in India.
0 Feedbacks 19. Overseas Citizen of India (OCI)
The OCI is an immigration status permitting a foreign citizen of Indian origin to live and work in the India indefinitely.
0 Feedbacks 20. Overseas Corporate Body (OCB)
It is a company, partnership firm, society, overseas trust, and other corporate body located outside India owned directly or indirectly by NRIs with at least sixty percent of beneficial ownership.
0 Feedbacks 21. Person of Indian Origin (PIO)
Person of Indian Origin (PIO) means a person whose ancestors were a permanent Indian resident.
0 Feedbacks 22. Portfolio Investment Scheme (PIS)
PIS permits an NRI to invest in Stocks and Mutual Funds through stock exchanges in India. NRIs can invest on a repatriation or a non-repatriation basis through PIS.

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