Can NRI do intraday trading in India?

Non-Resident Indians (NRIs) enjoy rights in India like resident Indians. Investing in Indian markets is perfectly possible for NRIs. As they are required to go through greater compliance and also there are some restrictions, there are confusions around NRI investment or trading in India. One of the common questions is can NRI do intraday trading in India? The answer is yes, but there are conditions. 

Can NRI do intraday trading in India?

Yes, an NRIs can do intraday trading in equity and equity Future and Option through their NRO Non-PIS trading account. Listed below are NRI investment options in India along with some exceptions: 

Investment optionsPermission
Equity Delivery Yes
Equity IntradayYes (with NRO Non-PIS trading account)
Equity Futures and Options IntradayYes (with NRO Non-PIS trading account)
Equity Futures and Options Short SellingYes (with NRO Non-PIS trading account)
Equity Futures and OptionsYes
ETFYes
IPOYes
NCD/ BondsYes
Equity BTST (Buy Today Sell Tomorrow)No
Currency Futures and OptionsNo
Commodity Futures and OptionsNo
NRI investment options in India
Can NRI do intraday trading in India?
Can NRI do intraday trading in India?

NRI trading restrictions in India

As per the FEMA rules, NRIs are only allowed to trade/ invest in equity and currency derivatives (through authorized dealer category I banks). Non-resident are not permitted to to trade in commodity derivatives. They can use the NRO Non-PIS trading account to do intraday trading in Equity Futures and Options (F&O). 

NRI trading account

You can open an NRI trading account with a stock broker in India for online trading. Some of the best trading accounts for NRI in India are HDFC Securities NRI trading account, Zerodha NRI trading account, Kotak Securities, etc. 

The NRI trading account facilitates online stock market investments and is in the middle of stock market transactions executed between an NRI bank account, Demat account, stock exchanges and the NRI investor. 

Based on the purpose and source of funds, you can choose between NRI PIS and Non-PIS account.  

For repatriation basis investment

Open an NRI PIS bank account to trade equity shares on repatriation basis. There are two types of NRE accounts to trade on repatriation basis:

NRE PIS Account

  • For buying and selling of equity shares through stock exchange

NRE Non-PIS

  • Mutual Funds
  • IPO
  • ESOP
  • Bonus/ Rights Issue

For non-repatriation basis investment

NRO Non-PIS account

  • Buying and selling shares through stock exchange
  • IPO
  • Mutual Funds
  • ESOP
  • Bonus/ Rights Issue
  • Equity Derivatives
  • Shares purchased as resident 
  • Shares received as a gift

Note:

  • You can map an NRE account to trade in the equity segment. However, you won’t be able to trade in futures and options (F&O) segments.  
  • If you map an NRO account, you can trade either in equity or derivative segments (Futures and Options).
  • You can also map both NRE and NRO accounts by sending 2 applications for opening the account.
How can NRIs trade in Indian stock market

Living away from India, it is not easy for NRIs to open a NRI Trading account or Demat account and make the right decision about investment in India. At SBNRI, we understand that there are many obstructions faced by NRIs while investing in India. You can download SBNRI App to connect with our experts and get end-to-end assistance related to an NRI investment.

You can also click on the button below to ask any questions. Visit our blog and YouTube Channel for more details.

Ask Indian Friend Now

FAQs

Can NRI invest in Indian stock market?

Yes, NRIs can invest in the Indian stock markets in India or equities of Indian companies in compliance with RBI norms.

Can NRIs do intraday trading in India?

Yes, non-resident Indians can trade in intraday stocks using their NRO non-PIS account.

Can NRI trade in futures and options?

Yes, NRIs are permitted to trade in futures & options segment using rupee funds in their NRO account in India on non-repatriation basis. The investment is subject to limits set by SEBI (Security Exchange Board of India).

Can NRI do trading in India?

NRIs can trade/ invest in shares, convertible debentures of Indian companies listed on exchange houses under portfolio investment scheme (PIS).

Copy link