NRIs can buy shares by investing their money into stocks listed on the National Stock Exchange of India Ltd. (NSE).

Steps to buy Shares Listed on Stock Exchanges in India

NRIs (Non-Resident Indians) can buy shares in India by following a step-by-step process, which is as follows:

1. Open an NRI Trading and Demat Account: The first step is to open a trading and demat account with a bank or a brokerage firm in India that offers NRI trading services. The account opening process can be done online or by visiting the bank/broker’s office in person. The required documents for opening an NRI account include a copy of the passport, proof of address, and a passport-sized photograph.
2. Obtain an NRE or NRO Account: An NRI needs to have either an NRE (Non-Resident External) or NRO (Non-Resident Ordinary) account to invest in the Indian stock market. An NRE account is for repatriable investments, while an NRO account is for non-repatriable investments. NRIs can open these accounts with any bank in India.
3. Link the NRE or NRO Account with the Trading Account: Once the NRI has opened the NRE or NRO account, they need to link it with their trading and demat account. This can be done by providing the bank with the necessary details of the NRE or NRO account.
4. Place the Order: After linking the NRE or NRO account with the trading account, the NRI can place an order to buy shares. The order can be placed through the bank’s or broker’s online trading platform or by calling the broker.
5. Payment for the Shares: The payment for the shares can be made through the NRE or NRO account. The NRI can either transfer funds from their foreign bank account to the NRE or NRO account or use the funds available in the account.
6. Receive Shares in the Demat Account: Once the payment is made, the shares will be credited to the NRI’s demat account. The demat account will hold the shares in electronic form.
7. Sell the Shares: NRIs can sell their shares through the same trading and demat account. The payment for the sold shares will be credited to the NRE or NRO account, which can be repatriated to the foreign bank account.

Documents Required for Demat Account

Dematerialized Account that holds shares in an electronic form that requires certain documents, which are:

• • Proof of Identity (POI) (Eg.: Driving license)
  • Proof of Address (POA) (Eg.: Passport)
  • Proof of Income (For trading in derivatives) (Eg.: Copy of ITR Acknowledgement)
  • Proof of Bank Account (Eg.: Cancelled cheque)
  • PAN Card
  • 1 to 3 passport size photographs

Documents for a Trading Account with a registered broker that requires certain documents (for both NRE/NRO accounts), which are:

1. • Indian address proof (not required in case of NRE)
   • Foreign address proof (Mandatory in both cases)
   • PIS Letter (issued by RBI)
   • PAN card
   • Bank Account Statement/ Passbook (Bank proof should indicate NRE/NRO saving a/c bank details)
   • If NRE or NRO is not mentioned (pre-printed) on cheque, then a bank verification letter is required
   • All the photocopies of the KYC documents should be attested by any of these entities: Notary Public, any Court, magistrate, judge, Local banker, Indian embassy, Consulate General of the country where NRI is residing.

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