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:
|Equity Intraday||Yes (with NRO Non-PIS trading account)|
|Equity Futures and Options Intraday||Yes (with NRO Non-PIS trading account)|
|Equity Futures and Options Short Selling||Yes (with NRO Non-PIS trading account)|
|Equity Futures and Options||Yes|
|Equity BTST (Buy Today Sell Tomorrow)||No|
|Currency Futures and Options||No|
|Commodity Futures and Options||No|
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
- Mutual Funds
- Bonus/ Rights Issue
For non-repatriation basis investment
NRO Non-PIS account
- Buying and selling shares through stock exchange
- Mutual Funds
- Bonus/ Rights Issue
- Equity Derivatives
- Shares purchased as resident
- Shares received as a gift
- 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.
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.
Yes, NRIs can invest in the Indian stock markets in India or equities of Indian companies in compliance with RBI norms.
Yes, non-resident Indians can trade in intraday stocks using their NRO non-PIS account.
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).
NRIs can trade/ invest in shares, convertible debentures of Indian companies listed on exchange houses under portfolio investment scheme (PIS).